The City will construct, own, operate, manage and maintain the garage. The garage property is being donated to the City by the Capitol Plaza for the purpose of building the facility. Capitol Plaza is also to construct new 80 room Hampton Inn.
The building will contain 348 parking spaces. In addition, 50 surface parking spaces will be leased by the city for public parking. The project will result in 160 net new parking spaces in downtown. A private 80 room Hampton Inn will constructed by the Capitol Plaza next to the garage.
The Council will be holding a public hearing on October 3rd prior to making a final decision whether to place this $10,000,000 bond issue on the ballot. There will be an additional public hearing on October 29 about all ballot items. Voting day is November 6th. If the bond passes, construction is expected to begin as early as December.
The Garage will be located behind Christ Church in the current Capitol Plaza parking lot. The Hampton Inn will be next to the Garage and behind the Capitol Plaza. The new site design will result in approximately 60 surface parking spaces, 50 of which will be leased by the city for public use.
The City’s Economic Development Strategic Plan (EDSP) adopted in June of 2016 after an extensive public process set out priorities. The EDSP specifically called for a new Hotel as the top desired transformational downtown project. The Plan identified parking and housing as key community needs.
The 160 net new parking spaces will increase the inventory of city managed (meters, permits, lots) spaces by 26% and will free up surface spaces for short term use. The project is also being designed to accommodate potential new housing (with garage parking) at Christ Church.
The 80 new hotel rooms will bring additional people into downtown for more economic activity while adding to local rooms, meals and alcohol tax revenue.
Finally, the project will create an ADA compliant bike path connection with a small park. There will likely be green space behind the garage creating symmetry with the proposed confluence park. The garage construction also allows the city to eliminate six parking spaces in the One Taylor Street project thereby opening up another 1600 square feet of green space.
The project is paid for with permits & fees ($575,000, 80%) and Tax Increment Financing (TIF) revenue ($150,000, 20%). Without going into detail about TIF, (see Montpelier TIF page for full TIF description) the only taxes paying for the project are those from the new hotel. No additional property taxes will be raised for this project. Capitol Plaza/Hampton Inn have committed to purchasing 200 permits annually for 20 years. We project to sell an additional 80 permits. The monthly permit rate is $125 per month which will generate $420,000 per year. Christ Church’s affordable housing project will be allocated 30 permits at $50 per month. Public parking is projected to generate approximately $136,000 in revenue.
Expenses for the garage include debt service (78%), operations (14%) and capital reserve (8%). Budget, cash flow and other financial details are available on the city’s web site.
|Income (first year pricing):|
|200 permits at $125/mo. (CP)|
|80 permits at $125/mo. (other)||$120,000|
|30 Affordable housing Permits at $50/mo.||$18,000|
|38 open spaces at $80/mo. estimate|
|104 flex spaces at $80/mo. estimate||$99,840|
|TIF Revenue from new Hotel||$148,628|
|TOTAL ANNUAL REVENUE|