Payment in lieu of parking set at $6K per space

Those wishing to develop property in Oxford Village’s Central Business District (C-1), but lacking the necessary off-street parking to meet the requirements now have the option of paying $6,000 for each parking space they’re short.
Council last week voted 4-1 to set $6,000 as the payment in lieu of parking amount with the rate to be reviewed at least annually.
‘These funds would be reserved for future parking space additions,? according to a memo from Manager Joe Young, who noted the money collected would be placed in a ‘restricted fund? under the village budget, not the Downtown Development Authority’s budget.
For example, if a developer wanted to build something downtown that required 100 parking spaces and he can only come up with 90 spaces, he could have the option of paying the village $60,000 for the 10 spaces he’s short. The money would then be used by the village to add more parking in the future.
A zoning ordinance amendment adopted by the village in 1993 allows for payment in lieu of parking for site plan approval by the planning commission.
‘Where it can be demonstrated that the reasonable and practical development of property precludes the provision of required off-street parking, the planning commission may permit the requirements thereof to be satisfied in all areas zoned C-1 by the payment to the village of a sum equivalent to the estimated cost of planning for and later acquiring parking spaces within the village limits,? the ordinance reads. ‘Such payment shall be a condition of site plan approval and shall be made to the village prior to the issuance of the building permit.?
Young noted the planning commission does have ‘discretion? as to whether or not it allows an applicant to utilize payment in lieu of parking to gain site plan approval.
‘It’s not mandatory,? he told council.
The ordinance states all payments in lieu of parking must be deposited by the village in a ‘special parking fund which shall be used and expended exclusively? for ‘planning, designing, acquiring, and/or developing off-street parking facilities.?
While the ordinance provides for the dollar amount per space to be set by the village council, Young said a rate was never established.
Young researched other communities and found that the City of Rochester ‘has had a similar payment program for several years? during which the per-space amount has increased from $4,000 to the current $12,000.
Northville has two rates ? $5,000 per space for new construction and $3,600 for renovations/expansions to less than half of an existing building.
In 1994, Milford lowered their fee from $3,000 to $500 per space.
Oxford’s new $6,000 per space fee is based on estimated construction and land acquisition costs.
Nowak & Fraus, the village’s engineering firm, determined it would cost $1,652.50 per space to construct a 50-space parking area complete with pavement, drainage, lighting and landscaping.
The land acquisition cost was estimated to be $10 per square foot or $4,000 per space, bringing the combined total up to $5,652.50 per space, which was rounded up to $6,000.
Young noted actual construction and land acquisition costs will vary over the years.

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