No icon

Final Downtown Parking SAD toll approved by council

Final Downtown Parking SAD toll approved by council Joan Van Houten Staff Writer. A second public hearing to solicit comment regarding the necessity for the Downtown Special Parking Special Assessment District was held at the Hastings City Council meeting Monday. An initial public hearing was held April 22, but an error in the required notices for the hearing required rescheduling.There was no public comments and the council adopted the resolution formalizing the finding that a Downtown Parking SAD is necessary.

A public hearing was also held to solicit comment regarding the final roll for the Downtown Parking SAD. There was no public comment and the council adopted the resolution approving the assessment roll.

The costs to be assessed are for ongoing maintenance of the downtown parking lots and will be assessed against properties benefiting from their use and maintenance. The assessed costs are for the 2019-2020 fiscal year.

The direct costs of routine maintenance are; $7,000 for the full-time labor of the Department of Public Service employees, $6,000 prorated for employee fringe benefits, $750 for maintenance and repair supplies, $12,000 for contractual services, $5,000 for administrative services, $4,000 for utilities, and $8,500 for the equipment rental fund.

The total assessment is $43,650 of which the Downtown Development Authority has committed to pay $15,962. Assessment to property owners in the special assessment district will be $27,688.

Distribution of the assessment is based on the building area, whether the building is active, use factors, existence of onsite parking, net building total, distance factor, and the effective net total.

The assessment calculations start with the building square footage multiplied by 80 percent that is multiplied by the use factor which equals the active building total.

The use factor relates to whether the building is in use and the type of business being operated to determine how frequently parking spaces are used by one business compared to another. The rating is from zero to two.

“For instance, a restaurant will have many more customers using parking spaces than an accounting office,” Krista Tietz, assistant assessor, said.

The next part of the calculation takes onsite parking into account. A business with one private parking space is able to subtract 200 from the active building total or if there are two parking spaces, subtract 400. This equals the net building use.

The net building is multiplied by the percentage of the distance from the customer entrance and exit to a parking space which gives the effective net amount.

Example: assessment assignment calculation

3,186 (building square footage) multiply by 0.8 = 2,549 (building area)

2,549 multiply by 1.0 (use factor/type of business) = 2,549 (active building)

2,549 subtract 800 (four parking spaces) = 1,749 (net building area)

1,749 multiplied by 0.8 (distance factor) =1,399 (effective building net).

Final step: divide district effective net building area with 1,399 effective net = assessment value.



Comment As:

Comment (0)