City deals guarantee garage space for private developers

As new developments continue to emerge in downtown Sarasota, the city’s agreement with one builder entitles a private hotel to use more than 40% of the total spaces in the Palm Avenue parking garage.

A similar deal is in place at the State Street parking garage, where the city is obligated to fulfill the parking requirements of a mixed-use development at the corner of State Street and Lemon Avenue.

Although these agreements were finalized in 2013 and 2015, both those developments are now under construction, raising a question about their impact on the public garages: After spending more than $20 million on the two garage projects, will the city feel a crunch when the new projects are completed and begin using their parking spaces?

City Commissioner Susan Chapman has been an outspoken critic of the deals. She called the parking agreements “corporate welfare” and doesn’t see any benefit for the city. Going forward, she’s wary of more giveaways ostensibly designed to entice developers.

“We give away our park, and we give away this and we give away that,” Chapman said. “Pretty soon, it’s costing the taxpayers.”

The city sold the Palm Avenue and State Street parcels to their current owners. Floridays Development Co. paid $2.5 million for the site at 50 Cocoanut Ave. and plans to construct a 164-room boutique hotel.

Commercial real estate firm Hembree and Associates paid $688,000 for the 5,041-square-foot parcel at 1500 State St. Both projects are targeting a completion date in 2017.

David Boswell, the city’s purchasing manager, said the city conducts thorough negotiations with private parties.

“It’s a very long, painstaking process deciding on what you’re going to put in it,” Boswell said. “We did a lot of public meetings, too.”

Right now, city Parking Manager Mark Lyons isn’t anticipating any parking capacity issues. He said the 305-space total to which the Floridays hotel is entitled is less severe than it may sound, because a portion of those spaces only comes into play when the venue needs more parking than usual.

Things will be more complicated when other downtown developments are complete, though.

“It will be a challenge,” Lyons said. “I think the key is working closely with the hotel management to ensure proper notification is maintained and that we manage those spaces carefully.”

Until the ongoing projects are complete, it’s hard to project the demand for parking five years down the line. If the developments pan out and the need for parking substantially increases, the city will have to respond accordingly.

“I think, right now, we’re in a good spot,” Lyons said. “We have to watch it very closely.”