Agenda Item No.

II-10 CITY OF WICHITA City Council Meeting September 11, 2012 TO: SUBJECT: INITIATED BY: AGENDA: Mayor and City Council Budget for Block 1 Garage, 123 South Topeka (District I) Office of Property Management Consent

Recommendation: Approve the budget and necessary budget adjustments. Background: On September 13, 2011, the City Council approved the Douglas Place TIF Project Plan. As part of the plan, the City of Wichita is constructing a 270 space public parking garage in the northwest quadrant of Topeka and William. Upon completion, the City will be responsible for the operation of the garage. Analysis: An operating budget was developed for the garage utilizing operating results from other garages, market estimates and contracted amounts. Revenues will come from four sources. The Ambassador Hotel has agreed to utilize 125 spaces with the rent rate set at 60% of operating expenses up to $125,000. Slawson Companies will lease up to 100 spaces to support the redevelopment of the Henrys building and Kansas Leadership Council has contracted to lease 45 spaces. Any unutilized spaces will be leased on monthly or daily to transient users. The management fee is a contracted amount with the Citys parking management company and insurance is based on estimates supplied by the Citys insurance carrier. Utilities and operating expenses were estimated based on the operating costs of other area garages. Financial Considerations: Staff anticipates that the garage will operate on a break-even basis. The financial activity of the garage will be recorded in a separate cost center within the Property Management division of the Economic Development Fund. Two months of expenditure and revenue transactions are expected in 2012. These transactions will be managed within the 2012 Revised Budget for the Economic Development Fund, although line item budget adjustments will be necessary. For 2013, the revenue and expenditure line item budgets will be established at $125,000 each, requiring budget adjustments from contingency amounts within the Economic Development Fund. Since revenues are expected to offset expenditures, neither adjustment is expected to adversely impact the fund balance. Goal Impact: Providing public parking in the downtown area supports the Core Area and Neighborhoods as well as promotes Economic Vitality and Affordable Living. Legal Considerations: The expenditure authority of the Economic Development Fund is certified to the State of Kansas pursuant to statute. The proposed budget adjustments will not increase fund expenditures above the certified level. Recommendation/Action: It is recommended that the City Council approve the Block 1 Garage proposed budget and necessary budget adjustments. Attachments: Proposed budget

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Block 1 Parking Garage Proposed 2013 Budget 270 Spaces Total Per Space Revenue Ambassador Hotel 1) Slawson Kans. Leadership Transient Monthly Transient Hourly Total Revenue Expense Electricity Water Telephone Insurance 2) Maintenance Janitorial Management 3) Miscellaneous Supplies Total Expenses Net Income $ $ $ $ $ $ 75,000 11,880 21,600 9,600 6,920 125,000

$ $ $ $ $ $ $ $ $ $ $

27,000 5,000 800 10,260 6,750 5,400 65,800 1,290 2,700 125,000 -

$ $ $ $ $ $ $ $ $ $

100.00 20.00 2.96 38.00 25.00 20.00 243.70 4.78 10.00 462.96

(1 - 60% of operating expenses per contract (2 - Based on quote from carrier (3 - Based on contract

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