MEMORANDUM

DATE:      January 29, 2004
TO:           Mayor and Council
FROM:    Lee Tuneberg, Finance Director  
RE:           Hargadine Parking Facility Revenues - 2003 Update

This is a summary table for the revenue recorded in calendar year 2003 with a comparison to 2002. During 2003 the structure generated $71,881 or about 17.3% more than the $61,300 earned in 2002. Current earnings were approximately $5,990 per month whereas 2002 had a monthly average of $4,656. April was the only month in 2003 that posted less ($150) than the prior year. There continues to be a significant drop in the "bell" distribution in November attributable to the end in Oregon Shakespeare Festival's season early that month and three days of no enforcement in the Plaza due to holidays resulting in extended, free on street parking.

The structure began parking service in March of 2001 and has demonstrated a growth in actual use each year. Use follows the tourist season and the remainder of FY 2003-04 is expected to be consistent with the prior year.

Debt service for the structure is approximately $67,600, which is due in December of each year. OSF is obligated to contribute approximately $29,000 each November to the city leaving a total debt service obligation of about $38,600 to be generated by the parking fees. It is estimated that the structure will need to generate around $48,000 or $4,000 on average per month to break even when taking into account debt service and O&M costs. Staff estimates annual revenue of $65,000 - $75,000 with our current pricing structure and continued level of use.

Parking is still very reasonable at $1.00 during the day (until 6:00 PM) and $3.00 in the evenings. At certain times of the busier days most spaces are filled with customers preferring the lower, covered levels. With an average ticket sale of $2.00, the City is experiencing approximately 329 cars being parked in the 145-space structure on our busiest day in the height of the tourist season (August). The city continues to sell monthly passes for daytime use of the structure for $20 per month with a range of 12 - 20 customers participating.

Attachment:   • Hargadine Parking Revenue Chart

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