Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
OCTOBER 16, 2019
Subject
SUBJECT: FIRST AMENDMENT TO AMENDED AND RESTATED PARKING LICENSE AGREEMENT WITH WEST ANGELES CHURCH OF GOD IN CHRIST FOR TRANSIT PARKING AT 3500 CRENSHAW BOULEVARD IN LOS ANGELES
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute a First Amendment to the existing License Agreement (“First Amendment”) with West Angeles Church of God in Christ (“Landlord”), for the use of 450 parking spaces at a parking garage located at 3500 Crenshaw Boulevard, Los Angeles (“Parking Garage”) for five additional years commencing January 1, 2020 at a monthly rate of $57,608 for a total value of $4,418,999 including annual escalations of approximately two percent. There are three five-year options to extend the term under the existing lease through December 31, 2040.
Issue
ISSUE
Metro has had a license with the Landlord to use parking spaces in the Parking Garage since April 2, 2012. In 2015, Metro determined that it had overestimated the parking demand at the Expo Crenshaw Station and entered into a new license to reduce the number of parking spaces by half from 450 to 225 parking spaces.
Due to the anticipated opening of the Crenshaw/LAX transit line in 2020, Metro Parking Management anticipates there will be an increased demand for parking at the Parking Garage and has determined that it is now time to revise the agreement to lease all the 450 spaces available in the Parking Garage again and implement the Supportive Transit Parking Program to support the operation of the new transit corridor.
Discussion
DISCUSSION
The Parking Garage owned by the Landlord has served as the park-and-ride facility for the Expo/Crenshaw Station since 2012. With the upcoming operation of the Crenshaw/LAX transit line, staff expects increased parking demand at the garage. The Expo/Crenshaw Station will be the northern terminus of the Crenshaw/LAX transit corridor and is one of only three stations on the corridor that provide a park-and-ride function. The new Crenshaw/LAX transit corridor also connects to Los Angeles International Airport, so parking demand is expected to rise significantly.
Along with the anticipated increased parking demand, the Parking Garage is also replacing the original planned park-and-ride facility at the Expo/Crenshaw Station. The original park-and-ride facility will be replaced with a transit-oriented development project. Metro has received concurrence from the FTA to use the Parking Garage to provide park-and-ride function for both lines.
Real Estate Asset Management has negotiated market rental terms to rent 450 parking spaces for a five-year term extension. The resulting amendment ensures Metro retains access to these parking spaces through 2040.
Equity Platform
This project aligns with Metro’s equity platform by facilitating access to the Expo/Crenshaw Station by Expo Line customers.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Providing secure parking in close proximity to the Crenshaw Station makes for safer travel to the station for Metro riders.
Financial_Impact
FINANCIAL IMPACT
Approval of the First Amendment with West Angeles Church of God in Christ will cost a total of $4,418,999 over the additional five-year term of the license. This cost is inclusive of the annual Consumer Price Index increases to the operating expense portion of the rent provided for in the terms and conditions of the agreement.
Impact to Budget
Real Estate has planned and submitted the cost of this First Amendment as part of its FY2020 Non-Departmental Real Estate Cost Center budget (0651) under the Expo Line Project 300066. Funding for any subsequent options will be requested during the Metro annual budget process. Funds used are eligible for rail operating expenditures.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
This project addresses strategic goal #2 to provide “outstanding trip experiences for all” addressing station parking availability that may negatively impact a customer’s decision to use public transportation.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The alternative is to not increase the number of spaces leased for the station and continue with the current lease as is. This alternative does not consider increased parking demand due to new operations and minimal parking resources available along the new line.
Next_Steps
NEXT STEPS
The Metro-executed lease will be delivered to the Landlord for counter-signature.
Attachments
ATTACHMENTS
Attachment A - Aerial Map of Property Location and Expo/Crenshaw Station
Attachment B - Deal Points
Prepared_by
Prepared by: John Beck, PREO, Countywide Planning & Development (213) 922-4435
Shannon Hamelin, Sr. Director, Parking Management (213) 418-3076
Frank Ching, DEO, Countywide Planning & Development (213) 922-3033
John Potts, EO, Countywide Planning & Development (213) 418-3397
Holly Rockwell, SEO, Countywide Planning & Development (213) 922-5585
Reviewed_By
Reviewed by: James de la Loza, Chief Planning Officer, (213) 922-2920
