Opinion

Sunday, Jun. 29, 2008

Editorial: Parking lot sale to Copelands in SLO council’s best interest

Let’s move the Chinatown Project forward and OK the deal Tuesday

Comments (0) |

No doubt about it, real estate in downtown San Luis Obispo is some of the most attractive, valuable and coveted on the Central Coast.

Certainly, the city of San Luis Obispo should not give away downtown public property for a song. But agreeing to sell two downtown parking lots for $3.7 million to advance the Copeland family’s Chinatown Project hardly constitutes a giveaway, as some critics would have charged.

Do we wish the city were getting more than $3.7 million?

Sure.

We believe strongly in the downtown, and we’d like to see a $4.5 million or even a $5.5 million purchase price.

But at this point, both sides say that further negotiations are likely to be fruitless. And at this late stage, we don’t think it’s worth risking the entire project — one that will bring an estimated $1 million to the city in annual bed tax, sales tax and property tax revenue — for a one-time gain of an extra $1 million or so.

Nor is it worth squandering the years of work and back-and-forth debate that have helped Chinatown evolve into a stronger project than ever.

Consider:

•The Copelands have reduced the height and the overall size of the project.

•They’re looking at preserving historic buildings that had been slated for demolition.

• And just this month, they announced plans for a redesign that moves the hotel to Palm Street — eliminating traffic congestion that would have occurred on narrow Monterey Street as hotel guests drove in and out.

The project—which includes residential condominiums, a hotel, shops and a restaurant—will cost an estimated $66 million to build. That’s a huge investment, and it could take years for another developer to come along who’s willing to make such a financial commitment.

We strongly agree with Mayor Dave Romero, Councilman Paul Brown and Councilman Allen Settle, who all believe the agreement is in the city’s best interests.

We urge them to move the project forward by voting to accept the new purchase agreement Tuesday.

They undoubtedly will take some heat for that decision.

Those who oppose the updated agreement say the city could get much more — up to $8.8 million —for the lots. That figure is hugely misleading.

It’s largely based on what the property would be worth if it were developed as residential condominiums at the maximum height and density possible. That amounts to a box-like building, 75 feet high. If you want ugly, that’s it.

The city would never approve such a project.

And many of those condemning the city over the proposed purchase price would never want such a project built either. They’d scream about building height, obstruction of views, loss of character— you name it.

To arrive at a realistic purchase price, it’s necessary to factor in the restrictions placed on the property, and there are many.

The city wants a mix of uses — residential, retail, hotel—and it has design criteria, parking requirements and a host of other conditions. Factor in those limits and that brings the value down considerably.

Opponents of the deal are upset that the city isn’t tacking substantial parking fees on top of the $3.7 million.

They contend that under the previous purchase agreement, which expired in May, the Copelands would have been required to pay parking fees on top of the purchase price.

City officials, though, say that issue was left open until there was an actual project. The agreement itself states that the Copelands “may be required to pay in-lieu parking fees.”

Here’s how parking will be handled: The Copelands will provide private parking for the project; there are now 200 spaces planned, but that could change. That still will leave a net loss of public parking, however.

To make up for that, the city will set aside $2.6 million of the $3.7 million purchase price. That money will go into a parking fund to help pay for another downtown parking structure.

We believe that’s a reasonable approach. It recognizes that the developers are meeting their customers’ parking needs, while helping to ensure that there’s adequate public parking downtown in the future.

Given the gains to the city, we believe this deal makes sense, especially when you consider that other communities go much further to encourage projects that are in a city’s best economic interests. That can mean offering land at little or no cost and/or putting in expensive infrastructure, such as roads, freeway overpasses or parking structures.

Here’s the bottom line: Downtown won’t wither and die without the Chinatown Project. There are many other areas of the city that are attractive, interesting and vibrant, and they’ll continue to draw visitors.

But do we really want one of the most visible areas of downtown— a block directly across from the mission — to be little more than empty storefronts?

We urge the City Council to take the farsighted approach.

Don’t be so caught up in making sure the city gets the maximum profit now that you miss out on an opportunity that will pay much greater dividends in the decades to come.

We strongly urge the council to approve the amended purchase agreement Tuesday, and allow the Chinatown Project to move forward.