IV.10. Authorize Staff to Prepare and Execute a Parking Lease Agreement at 16 9th Avenue North.; Elverum
CITY OF HOPKINS
City Council Report 2025-097
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Kersten Elverum, Director of Planning & Development
Date: May 20, 2025
Subject: Parking Lease Agreement – 16 9th Ave N
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RECOMMENDED ACTION
MOTION TO Authorize staff to prepare and execute a parking lease agreement
consistent with the terms described.
OVERVIEW
The property at 16 9th Avenue North is under contract for purchase and as part of the
buyer’s due diligence, they are seeking assurance that there will be adequate parking
for current and future tenants of this property. In order to have that assurance, they
requested the ability to purchase up to 84 annual parking permits for Lot 600 and 750
for up to 20 years.
The City of Hopkins owns and manages a public parking system with 11 surface parking
lots and one ramped parking structure. Within the lots and ramp, parking is managed
based on demand. Different lots have different restrictions and availability of permit
spaces. In order to balance the impact of committing 84 spaces, staff offered to have
them allocated between Lots 600 and 750, as requested, plus Lot 300 and street
parking on 9th and 19th Avenues. Today, those lots have a capacity of 99 permits.
Under this agreement, the owner or their representative, could purchase up to 84
annual permits at the beginning of each calendar year and the City would allocate the
permits by lot, based on current demand. The maximum number of permits per lot may
vary year to year, with the total being 84.
The terms of the agreement would commit the City of Hopkins to sell up to 84 annual
parking permits, in a combination of municipal lots including Lot 600, Lot 750, Lot 300
and street parking on 9th Ave or 10th Ave. The permit cost and future increases will be
consistent with the system as a whole and determined by the City Council. The 2025
base fee would be the same as the regular annual permit rate of $379.85, pro-rated for
the calendar year. The term of the agreement would be five years, with three five -year
renewals.
The parking agreement mirrors the existing parking system terms with the main
difference being the commitment to sell permits beyond one year. Currently there is
capacity to sell 84 annual permits while still having enough permits available for others.
Planning & Economic
Development
The City of Hopkins has partnered with businesses and residential developers in the
past to meet their parking needs through lease agreements including the Wells Fargo
building, Driskill’s Grocery, Gallery Flats and Ovation Apartments. If staff
recommended terms are approved by the City Council and if the purchase of the
property goes through, staff and the City Attorney will draft an agreement to be
executed by the Mayor and City Manager.