Memorandum

City of Lawrence

City Manager’s Office

TO:	Mayor and City Commission
FROM:	Mike Wildgen, City Manager
Date:	January 3, 2005
RE:	Abe and Jake’s parking garage contract requirement

Attached is a request from Mike Elwell requesting you to “eliminate or substantially reduce the monthly rent” requirement in the contract signed December 15, 1999.  That contract dealt with a variety of issues related to the Barb Wire Building which is owned by the City and has been rehabilitated and operated as “Abe and Jake’s.”  The relevant portion of the contract is attached.

The letter requests the change in rent because the “Marriot parking spaces, City spaces, parking permits, and pay-to-park have severely limited the number of spaces available to the public.”

A vehicle count on the upper levels, ramps, and lower levels of the parking garage at a variety of times over the past six weeks does not confirm a highly limited number of available spaces.  Numerous spaces were available during the daytime, weekends, and late evening hours.  Staff recommends that the negotiated payment ($400/month) is appropriate to help defer the cost of cleaning, maintenance, trash removal, and operation of this facility.  The $4,800/year charge beginning in 2005 is the first monetary compensation to the City required under the 1999 lease agreement (Abe & Jake’s is contractually required to pay property taxes, utilities, property insurance, etc.). Other adjacent users to the parking facility are required to pay for designated spaces or purchase parking passes:  Marriot pays $26,496/year (138 upper spaces at the current rate of $192 per space) and Riverfront Plaza pays $45,120/year (purchasing permits for 235 long term spaces at $192 per space).  All of these payments, including the Abe & Jake payments, are revenue to the downtown parking fund.