Item Coversheet

Agenda Item - 4.d.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Scott Stiles

From:Lisa Kim
Dept.:City Manager 

Dept.: Community and Economic Development 
Subject:

Approval to enter into a License Agreement with Cottage Industries, LLC for 52 parking spaces in the parking lot area located on 8th Street between 11391 Acacia Parkway and 11390-11400 Stanford Avenue, Garden Grove.  (Action Item)

Date:12/10/2019

OBJECTIVE

To obtain approval by the Garden Grove City Council to enter into a License Agreement with Cottage Industries, LLC for 52 parking spaces in the parking lot area located at 8th Street between 11391 Acacia Parkway and 11390-11400 Standford Avenue (APN: 090-15-457).

BACKGROUND

Cottages Industries, LLC ("Developer"), a subsidiary of LAB Holdings acquired twelve (12) properties and leased five (5) properties in the Downtown-Civic Center area in 2016.  Since then, the developer has been working diligently on the approvals necessary to transform the craftsmen style homes into commercial restaurant, retail and hotel use.  The Cottage Industries Project includes the Farm Block and the Art Block.  The developer received Site Plan and Conditional Use Permit approval from the Planning Commission to develop the Farm Block Project on March 15, 2018, and the Art Block on December 5, 2019.

DISCUSSION

The Developer wishes to enter in a License Agreement (Attachment 1) with the City of Garden Grove to lease fifty-two (52) parking spaces at the Acacia Parking Lot, located north of Acacia Parkway, east of 8th Street, at 11391 Acacia Parkway, to satisfy the parking requirement for the Art Block’s amended program.  

 

The Acacia Lot has 110 existing parking spaces that serve the Acacia Adult Day Care Center, the Credit Union, the Police Department, and adjoining community facilities.  The parking lot prohibits school parking.  As part of the license agreement, the developer will restripe the parking lot to provide a minimum of 124 parking spaces to accommodate the existing parking demand for the Acacia Lot and the required parking demand for the Art Block.  The developer’s proposed restripe plan identifies that 129 parking spaces can be accommodated at the Acacia Lot, which will exceed the minimum number of 124 parking spaces required.  The final design of the parking lot will be reviewed and approved by the City to ensure that the appropriate number of handicap parking spaces are maintained. 

 

In 2017, a parking utilization analysis for the Acacia Lot was performed as part of the Downtown Parking Management Strategic Plan.  The Downtown Parking Management Strategic Plan was prepared to identify parking issues, concerns, and needs of current and future developments, and to outline recommendations and strategies for improving and effectively managing parking in the downtown area.

 

The data collected on June 13, 2017, for the Acacia Lot determined that at the noon hour, the same time as the Art Block’s peak parking demand, 72 parking spaces were occupied.  With the proposed restriping of the Acacia Lot to a minimum of 124 parking spaces, 72 parking spaces will continue to be available to serve the existing parking demand of the Acacia Lot, and 52 parking spaces will be available to serve the Art Block parking.

FINANCIAL IMPACT

Developer shall pay a monthly fee to the City in the amount of Twenty dollars ($20) per parking space.  Credit will be given to the Developer for improvements made to the parking lot by developer as described in Section 10 of the License Agreement.  Payment shall commence on the first day Developer commences operation of the Cottage Industries project, but no later then December 2021, whichever comes first.  Payment shall be prorated on a 30-day month basis.

RECOMMENDATION

It is recommended that the City Council:

 

  • Approve the License Agreement with Cottage Industries, LLC for use of 52 parking spaces in the parking lot area located at 8th Street between 11391 Acacia Parkway and 11390-11400 Standford Avenue (APN: 090-15-457); and

 

  • Authorize the City Manager to execute the Agreement on behalf of the City and make minor modifications appropriate.

 

 

By:  Grace Lee, Sr. Economic Development Specialist




ATTACHMENTS:
DescriptionUpload DateTypeFile Name
Attachment 1 - License Agreement12/2/2019AgreementCottage_Industries_License_Agreement-8th_St_Parking_Lot_10-24-19_(2).docx