TECHNICAL MEMORANDUM

PHASE ONE PARKING DECK FEASIBILITY STUDY

NEW GREEN PARKING LOT SITE
HUNTINGTON, NY

MAY 12, 2017

SUBMITTED TO:

THE TOWN OF HUNTINGTON ECONOMIC

DEVELOPMENT CORPORATION

SUBMITTED BY:
 TABLE OF CONTENTS
PAGE NO.

1. INTRODUCTION 1.

Project Understanding
Project Purpose
Parking Study Area

2. PARKING SPACE SUPPLY 3.

On-Street Parking
Municipal Parking Lots
Private Parking Lots

3. PARKING SPACE UTILIZATION 5.

Off-Street Parking
On-Street Parking
Employee Parking
Event Parking

4. PROPOSED PARKING PROGRAM 8.

The Subject Parking Deck Site

Parking Deck Functional Plan
Competing Facilities
Figure 2 Recommended Program Plan

5. ECONOMICS 12.

Parking Program Developmental Cost Estimate

Annual Debt Service & Operating Expense Estimate
Table 1 Preliminary Financing Worksheet
Parking Program Revenue
Table 2 Parking Program Revenue Projections
Financial Summary
Assumptions
Alternate Cash Flow Scenarios
1. INTRODUCTION

The Town of Huntington has engaged Level G Associates, parking consultants, for the purpose
of preparing a Phase One Parking Deck Feasibility Study. A Phase One assessment is not a full
feasibility study, but rather, a condensed or modified study that will address major points
regarding project potential, sizing and economics. Our analysis will draw from a comprehensive
downtown parking study completed in 2013 plus more recent parking evaluations prepared by
Dunn Engineering. In addition, the study will take into account the effect of commercial and
residential projects that are expected to come on-line in the near future in the study area.

Project Understanding

Downtown Huntington is one of the most popular and dynamic central business district
destinations on Long Island. It is located at the crossroads of Main Street (NYS 25A) and New
York Avenue (NYS 110) in the northwest portion of the Town and includes a concert hall plus an
assortment of banks, offices, restaurants, salons, and retail establishments. As expected,
competition for parking spaces among these uses plus the local residents creates frustration,
unhealthy parking patterns, and congestion during peak periods.

One solution to this problem could be the construction of a multi-level parking structure that
can provide multiple benefits to the district such as:

the addition of much needed parking;

the reduction of spillover parking into local residential areas;
the reduction of traffic congestion from cars searching for available parking.

The development of structured parking in downtown Huntington has been under consideration
for quite some time and with good reason. Parking structure development in a downtown
setting reverses the negative impacts of parking lot sprawl and begins to mitigate unhealthy
parking and traffic conditions.

Project Purpose

The purpose of this assignment is to evaluate the subject parking deck site and parking
conditions within the service area of the site and to draw preliminary conclusions regarding the
feasibility, development potential, and economics of a parking deck project on the subject site.

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Parking Study Area

When gauging the feasibility of a potential parking deck development it is customary to

evaluate parking condition within the service area of the subject parking deck site. This service
area is generally defined as the area that 85% of the customers will walk after parking their
cars. In a suburban center downtown setting like the Huntington central business district (CBD)
this distance is usually in the 650 to 750 foot range. Using this range, the locations of popular
destinations, the local street grid, and municipal lot locations we developed the parking study
area indicated in Figure 1, below.

Figure 1 Parking Study Area

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2. PARKING SPACE SUPPLY

There are approximately 2,600 parking spaces located in the parking study area broken down as
follows:

On-Street Spaces 793

Municipal Parking Lots 1,254

Private Parking Lots 553

Total Parking Spaces 2,600

On-Street Parking

On-street parking spaces are generally metered in the central portions of the study area and
free or non-restricted along some streets near the perimeter of the study area. The following
table is a summary of the on-street parking supply in the study area:

3HR LIM 3HR LIM FREE

FREE FREE
$0.50/HR $1.00/HR NO
1HR LIM OTHER (2)
SSM (1) MSM (1) REGULATIONS
Gerard St. 35 45
Main St. 6 113 11
Elm St. 19 30
W. Carver St. 34 36 6
E. Carver St. 21 28
Fairview St. 17
Woodbury Rd. 10
Prospect St. 69 13
Clinton Ave. 20
Green St. 43 33
Wall St. 33
New St. 69
New York Ave. 63
Stewart Ave. 17
Myrtle Ave. 22
TOTALS 247 209 61 257 19

(1) SSM = Single Space Meters; MSM = Multi-Space Meters

(2) 15MIN Free (W. Carver); HC, 30MIN Free, NP 8A-3P (Prospect)

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As indicated there are 793 on-street parking spaces in the study area and 456 (58%) of these
parking spaces are metered. The metered parking supply consists of 209 spaces along Main
Street, New York Avenue and Wall Street that are $1.00 per hour and controlled by multi-space
meters (MSM) set up in a pay by space configuration. The remaining 247 metered spaces are
$0.50 per hour and controlled by single space meters (SSM).

Municipal Parking Lots

There are 11 municipal parking lots in the parking study area totaling 1,254 spaces. The
following table is a summary of this parking supply:

ALL DAY NO
2HR LIM 3HR LIM
PARKING REGULATIONS
A Post Office Lot 951
B Nathan Hale Lot 163
C Gerard St Lot - W 14 89
D Gerard St Lot - E 91 54
E Clinton Ave Lot 40 24
F Elks Club Lot 25
G New / Green Street Lot 264 7
H Lower Elm Lot 137 36
I Lower Elm Annex 63
J Upper Elm Lot 76
K East Carver Lot 76
L TOTALS 40 506 123 585

The entire municipal parking lot supply offers parking free of charge however 546 parking lot
spaces (44%) have a 2HR or 3HR time limit while the remaining 708 spaces (56%) allow All
Day or unrestricted parking.

Private Parking Lots

There are about 550 parking spaces in 25 private parking lots ranging in size from 7 to 73
parking spaces located in the parking study area. These parking spaces are generally restricted
for use by employees or customers of the buildings they serve. The actual private parking
space total may be slightly higher because private parking areas with 5 spaces or less were not
counted.

1
Includes 28 spaces signed Parking During Postal Business Hours Only

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3. PARKING SPACE UTILIZATION

Parking counts and observation conducted by Nelson Nygaard in 2013, Dunn Engineering in
2016 and Level G Associates in 2017 indicate that municipal parking spaces in central portions
of the parking study area are heavily utilized both during the week and on weekends.

Off-Street Parking

The following chart shows typical parking space occupancy levels in the New / Green Street Lot
(the subject parking deck site) and the four municipal parking lots in closest proximity to the
New / Green Street Lot.

As indicated, the New / Green Street parking lot reaches or exceeds the 100% occupancy
threshold during daytime and evening time periods on a typical basis. It should be noted that in
downtown areas, it is generally accepted that a parking facility can only be expected to operate
at 90% of capacity due to the constant in-flow and out-flow of automobiles, improperly parked
vehicles and under-utilized handicap stalls. Parking areas that are observed to be parked at or
above the 90% threshold are considered full from a design perspective and clearly represent
the highest demand parking zones.

When parking facilities are routinely occupied at the 100% threshold or more (saturated) it is
indicative of significant local parking space deficiencies that need to be corrected. In addition
to frustration and the negative perception they create, saturated parking facilities cause
motorists to circle parking lots and streets in a quest for open parking which causes local traffic
congestion and increased vehicular - pedestrian conflicts.

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On-Street Parking

Local on-street parking spaces were observed to mirror the occupancy patterns of the
surrounding municipal parking lots. According to records stored by the multi-space meter
software, multi-space meters governing 209 on-street spaces along the highest demand streets
in Huntington average about 2,200 transactions per day. This translates to about 10.5
transactions per space per day. Since the hours of operations of these meters are 10AM to
8PM (10 hours per day), each space is turning over an average of about once every 57 minutes,
even though the time limit for these spaces is 3 hours.

This data indicates that the $1.00 per hour fee to park in these spaces has achieved its intended
purpose of promoting turnover and moving downtown employees from premium parking
spaces into nearby parking lots or other on-street spaces.

Employee Parking

In many downtown districts on Long Island such as Port Jefferson, Babylon, Bay Shore, Rockville
Centre, Long Beach and Great Neck local employees pay a modest fee to park in the centrally
located parking lots. This is done to manage the parking supply in a manner that makes parking
accessible to key user groups while encouraging healthy parking patterns. Downtown
Huntington is unique because All Day and Unrestricted parking spaces designed for
employee use are available free of charge in centrally located parking lots including Clinton
Avenue, Gerard Street East, Gerard Street West, East Carver Street, Lower Elm Street and the
Elm Street Annex Lot on Main Street.

Unrestricted on-street parking spaces along Elm Street, Myrtle Avenue and Prospect Street
serve a similar purpose. Yet despite the generous and convenient parking alternatives available
to the downtown employee population, we still observed employee parking activity in Free 3
hour and 1 hour limit parking spaces in the New / Green Street Lot and along East Carver Street,
respectively.

Event Parking

Level G Associates conducted special parking counts during two recently sold out shows at
the Paramount Theatre on April 6 and April 9, 2017. During this time all municipal parking lots
in the study area south of Main Street were full. In addition, all on-street parking spaces within
a two block radius of the theatre were full including residential areas along East Carver, Myrtle
and Fairview. Residential neighborhoods along Gaines and Elm (between Nassau and Benedict)
were also experiencing theatre related parking activity.

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After accounting for the typical number of cars parking along these streets on non-event
evenings it is estimated that up to 100 event-related cars are parking in residential
neighborhoods south and east of the Paramount Theatre during well attended events.

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4. PROPOSED PARKING PROGRAM

As indicated in Section 3, the downtown parking space deficiency needs to be corrected in

order to reduce congestion, reduce pedestrian-vehicular conflicts, improve public perception,
and restore healthy parking patterns that will provide economic benefit to the entire CBD, not
just the areas immediately adjacent to the subject parking deck site. It is recommended that
the parking program provide for net gain of at least 350 spaces determined as follows:

To reduce the occupancy of saturated parking facilities

175 spaces
from 100% to 85%
To provide parking for event-related cars parking in
100 spaces
residential neighborhoods on Paramount event nights

To support future downtown economic growth 75 spaces

Total 350 spaces

The Subject Parking Deck Site

The subject parking deck site is very well suited for parking structure development for several reasons:

It is the most heavily utilized of the municipal parking lots;

It is centrally located to serve the entire central business district;
From a traffic circulation perspective it is located between a one-way pair of streets offering
excellent site access, especially from the south and west where almost two-thirds of
inbound vehicular trips originate;
It has excellent dimensions to accommodate an efficient parking structure.

Because the site is centrally located and proximate to the focus of downtown parking demand a
parking structure on this site will effectively take pressure off all five centrally located municipal
parking facilities, improving parking and traffic conditions throughout the CBD. In addition, the
site appears to be reasonably unencumbered by underground utilities or other obstructions
that would complicate site preparation and construction.

Parking Deck Functional Plan

Attachment 1 is a functional plan indicating a three story parking structure with 528 parking
spaces located in the central portion of the New / Green Street parking lot. The parking

8
structure has a very efficient footprint of about 186 x 238. The finished floor of the first
supported level of the parking deck is about 11-2 above the existing sidewalk to allow
sufficient headroom for van accessible handicap stalls per Americans with Disabilities Act
requirements. Floor-to-floor dimensions of the next two supported level are assumed to be
10-5. Adding a 4 high parapet wall to the roof level of the deck brings the total parking deck
height to about 42-0 (11-2+10-5+10-5+4-0=42-0). A structure of this size will be
similar in height to the 3-story office building at 23 Green Street and the New York Sports Club
on New Street, both of which will be directly across the street from the parking deck.

The 528 parking deck will be situated on the central portion of the New / Green Street Lot
which contains 158 active parking spaces. Therefore, the net parking gain will be 370 spaces
determined as follows:

Capacity of proposed parking deck 528 spaces

Current on-site parking displaced (158 spaces)
Net parking gain 370 spaces

The 370 space net parking gain exceeds the recommended new parking capacity target of 350
spaces by 20 spaces.

Because parking deck construction requires a significant capital investment, it is assumed that
parking fees will be collected at the new parking deck to offset debt service and carrying costs.
This will be discussed in greater detail later in this report. There are several methods of access
and revenue control available to operate this parking deck but our recommended system would
use parking gates, proximity card readers and pay-on-foot stations. This system will allow
hourly / transient use, daily parking, employee / permit parking, event parking and can be
configured to allow local businesses to validate customer parking stubs.

Competing Facilities

While several scattered private parking lots will pose a modest level of competition to the New-
Green Parking Deck, the largest competition will come from the Towns own free municipal
parking lots. Not including the subject parking deck site there are currently over 1,000
municipal parking spaces offering free parking within the service area of the parking deck. If
the most convenient of these parking facilities were to remain free, counter-productive parking
patterns would emerge as the free lots would become inundated with new parking demand
from parkers seeking to avoid parking fees in the New-Green Parking Deck. For this reason it is
recommended that the parking deck development program be accompanied by the

9
establishment of parking fees at the most centrally located municipal parking lots. The
following map illustrates this concept and our preliminary recommended program plan.

Figure 2 Recommended Program Plan

As indicated, in order to create parking system balance after the opening of the New-Green
Parking Deck a parking Pay Zone is recommended that will promote healthy parking patterns
and generate additional revenue to support the parking structure.

In addition, we are recommending special parking rules and restrictions be established to

protect local residents from downtown parking spillover into residential neighborhoods east

10
and south of the Paramount Theatre. This may include time limits, special permits, alternate
side of the street parking, or establishment of residential parking zones.

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5. ECONOMICS

Parking garage construction costs can vary widely depending on size, structural system,
efficiency (square feet per car), architectural / faade treatments, and other factors. The 2017
edition of R.S. Means Construction Cost Estimating, a widely referenced construction industry
publication, indicates that parking garage construction costs in the Long Island region are
generally expected to be about $25,614 per space and this is consistent with our observations
and recent experience.

Parking Program Developmental Cost Estimate

Adding projected soft costs and contingencies to the anticipated parking garage construction
cost yields the following developmental cost estimate for the New-Green Parking Deck.

528 spaces @ $25,614 per space $13,524,192

Design $1,149,556
Inspection and Supervision $439,536
Surveys and Testing $200,000
Contingency $766,715
Total Developmental Cost Estimate $16,080,000

In addition to the parking garage developmental costs identified above, the recommended
parking program plan includes the establishment of an employee parking permit program and
the monetization of certain parking lots via metering.

Annual Debt Service & Operating Expense Estimate

Table 1, next page, is a project financing worksheet estimating the Annual Debt Service and
Operating Expense for the complete recommended program using the Developmental Cost
Estimate and assuming the project will be financed with 30 year tax exempt revenue bonds
issued by a newly created single purpose Local Development Corporation formed by the Town
of Huntington (Parking LDC). The Parking LDC would own and operate the new parking garage
and it would be the sole obligor of the bonds. It is recognized that as project planning
progresses this structure may be modified. As indicated, the preliminary bond sizing is
$18,785,000 and annual debt service payments are estimated to be $989,626.

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TABLE 1 Run Date: 5/8/2017
PRELIMINARY FINANCING WORKSHEET
REVENUE BOND FINANCING - TAX EXEMPT
NEW-GREEN PARKING DECK PROGRAM
TOWN OF HUNTINGTON, NY

Parking Garage Construction

528 spaces @ $25,614 per space $13,524,192

Design; Supervision & Inspection; Surveys & Testing; Contingencies $2,555,808

Remainder of Parking Program

15 Meters @ $15,000 per location $225,000

Signage, Lighting, Shelters, and Related Improvements $95,000

TOTAL DEVELOPMENTAL COST $16,400,000

Financing / Use of Funds

Deposit to (net funded) Construction Fund $16,277,000

Deposit to Debt Service Reserve Fund $989,626
Deposit to (net funded) Cap Interest Fund (12 months) $559,323
Issuing Costs* $657,475
Deposit to Renewal Account (For Preventative or Captial Garage Maintenance) $300,000
Correction Amount $1,576
$18,785,000
ESTIMATED PAR AMOUNT OF BONDS $18,785,000

Annual Debt Service Payment

30 year issue @ 3.25%, level payment schedule $989,626

Garage Operating Expense

528 spaces @ $600 /space / year $316,800

Monetized Lots - New Expenses

737 spaces @ $250 /space / year $184,250

TOTAL ANNUAL DEBT SERVICE & OPERATING EXPENSE ESTIMATE $1,490,676

Includes Underwriters Discount, Bond Insurance Premium (if any), Bond Counsel, Printing, Advertising & Miscellaneous, General
* Counsel, Parking Consultant
Parking garage operating expenses are estimated to be about $316,800 per year in the early
years. These costs include staffing, maintenance, electric, security, service contracts, insurance
and regular deposits into a preventative maintenance fund that will be used to keep the garage
in top condition2. In addition, operating expenses for the parking permit program and the
monetized lots are estimated to be an additional $184,250 annually.

Parking Program Revenue

For the purposes of this evaluation we will assume that existing parking revenues generated by
the meters in downtown Huntington will continue to flow to the Towns general fund and that
all new revenue associated with the recommended parking program will flow to a debt
service account that will be used to amortize the bonds. Parking program revenues that are
generated after the debt service account has been adequately funded can flow as surplus
revenue to the Towns general fund.

Table 2, next page, indicates that parking revenues generated by the recommended parking
program are projected to generate over $1.8 million annually. This estimate is based on the
following assumptions:

Paid parking will be in effect from 10AM to 10PM, 361 days per year at the on-street meters
and in Town parking lots within the proposed pay zone indicated on page 9;
Parking will be free on New Years Day, Easter Sunday, Thanksgiving Day, and Christmas
Day;
The fee for parking in Town parking lots within the pay zone is assumed to be $0.75 per
hour, offering a discount from prime on-street parking that is priced at $1.00 per hour;
Time limits for parking in Town parking lots within the pay zone are assumed to be 3
hours;
Local employees wishing to park in Town parking lots within the pay zone may purchase a
sticker for a fee equivalent to $20 per month. This works out to less than $1 per day;
In the New-Green parking garage paid parking will be in effect at all times except the four
holidays listed above;
Local employees wishing to park in the New-Green parking deck may purchase a proximity
card on a monthly basis for a fee of $40 per month with no overnight parking privileges;

2
The science of caring for a parking garage is similar to dentistry. Regular check-ups and a modest amount of
routine care will prevent costly and unexpected repairs in the future. A parking garage preventative maintenance
program includes; sealing decks, replacing caulk, painting, crack repairs, cleaning decks, replacing joints, etc.

14
 Local residents wishing to park in the New-Green parking deck may purchase a proximity
card on a monthly basis for a fee of $80 per month which includes overnight parking
privileges;
The fee for parking in the New-Green parking deck will be $1.00 per hour and the time limit
will be 72 hours;
A flat rate of $5 will be available for parking in the New-Green deck on event nights;
Parking enforcement operations will be ongoing and sufficient to insure reasonable
compliance to parking rules, regulations and fees.

Table 2 Parking Program Revenue Projections

Category Projected Revenue

Hours of operation extended from 8P to 10P; Mon-Sat; Existing Meters

Exist MSM- 2HRSx$1/HRx209 spacesx70% utilization x 302 days $88,365
Exist SSM- $131.06/space x 247 spaces $32,372
Charge on Sundays
Exist MSM- $2,100/day x 51 Sundays $107,100
Exist SSM- $161.96/space x 247 spaces $40,004
Add meters along Stewart & east end of Gerard Street
33 x $1,110.65/space/year $36,650
Employee Parking in Monetized Lots (Note 1)
330 permits @ $20/MO x 12MO $79,200
Metered Parking in Monetized Lots (Note 2)
361 daysx $4.30/space (avg) x 446 spaces $692,326
New-Green Deck Revenue
Employee Permits- 125@ $40/MO x 12MO $60,000
Residential Permits- 25@ $80/MO x 12MO $24,000
Day Revenue- 378 x 60% utilization x 4.25(avg) pd-hrs/day x $1 x 361 days $347,968
Night Revenue- 378 x 60% utilization x 2.75(avg) pd-hrs/day x $1x 361 days $225,155
Event Parking- 150 nights x 150 transaction (avg) x $5 flat fee $112,500

Estimated NEW Parking Revenue $1,845,640

Note 1 - 330 Spaces} Gerard St E & W (143); Lower Elm (36); Elm Annex (63); New St (30); E. Carver (38); W. Carver (20)
Note 2 - 446 Spaces} Gerard St E & W (105); Clinton (64); Lower Elm (137); New St (30); Green St (52); E. Carver (38); W. Carver (20)

The above projections are based on the described inaugural parking fees and are largely derived from
data provided by the Towns parking meter software.

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Financial Summary

As projected, parking revenue from the new parking program will exceed the Debt Service and
Operating Expense load of the project by over $350,000 per year during the early operating
years:

Annual Revenue Projection (Early Years) $ 1,845,640

Annual Debt Service & Operating Expense Estimate (1,490,676)
$ 354,964

The debt service coverage ratio for this cash flow works out to be about 136% determined as
follows:

Net Income Before Debt Service3 $1,344,590

------------------------------------------- = -------------- = 135.9%
Debt Service Obligation $989,626

It is possible that debt service coverage ratios may be modestly lower than those projected
above during the first 24 months of operation as new parking programs often experience a
maturation and absorption period.

Based on the assumptions and evaluations presented herein it is preliminarily determined that
the recommended parking program is feasible from both a physical and financial perspective.

Additional Assumptions

All income in the income categories described will be available as pledged revenue for debt
service payment for the life of the bonds;
The parking deck and any commercial components that may accompany the project will be
constructed without significant delay;
Financial projections are largely based on data gathered form the Towns parking pay
station software and it is assumed this data is accurate and up to date;
It is assumed that all parking access and revenue control systems used by the Town will be
modern equipment and systems that will minimize the risk of theft and leave an accurate
and auditable paper trail. It is further assumed that these systems will be accompanied by a
vigilant internal control program designed to quickly identify and correct revenue leakage if
and when it occurs;

3
$1,845,640 in projected revenue minus $501,050 operating expense estimate = $1,344,590

16
 Projections are based on continued competent and efficient parking system management
and assume that no new parking competition, other than existing parking currently in the
area, is introduced within the service area of the proposed deck;
It is assumed that it is physically feasible to construct the deck and that no legal actions,
title issues, zoning regulations, permitting issues, licensing issues, environmental issues, or
other regulations or issues will compromise the construction schedule or add material cost
to the Towns capital obligations estimated herein.

Alternate Cash Flow Scenarios

The Towns financial advisor has requested that two additional cash flow alternatives be
considered. They are:

Option B: Income available for debt service does not include additional revenue from
existing on-street meters generated by the extension of meter hours from 8PM
to 10PM and charging for parking on Sundays;

Option C: Income available for debt service includes 50% of all income generated by
existing on-street meters including the extended operating periods.

For the sake of comparison, the assumed cash flow and income projections described
previously on pages 15 through 17 will be referred to as Option A. The following table
estimates the impacts that Options B and C would have on project economics.

OPTION A OPTION B OPTION C

a Estimated Parking Revenue $1,845,640 $1,577,799 $2,011,719
b Estimated New Operating Expense $501,050 $501,050 $501,050
c Estimated Revenue Available for Debt Service (a - b) $1,344,590 $1,076,749 $1,510,669
d Debt Service $989,626 $989,626 $989,626
e Debt Service Coverage Ratio (c d) 135.9% 108.8% 152.7%

The achievement of any projected performance is dependent upon future events that cannot
be assured. Therefore, actual results are likely to vary from the forecasts presented herein.
Such variations could be material.

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 Main Street

Green

PROPOSED PARKING DECK

528 SPACES

New Street

W. Carver St.

ATTACHMENT 1A

NEW-GREEN PARKING DECK FOOTPRINT

HUNTINGTON, NY
 PARKING SUMMARY

Grade Level 116 Spaces

1st Supported Level 140 Spaces
2nd Supported Level 140 Spaces
Roof Level 132 Spaces

Total 528 spaces

Section -

New Street

Grade Level Plan - 116 Spaces

ATTACHMENT 1B

NEW-GREEN PARKING DECK CONCEPT

HUNTINGTON, NY
Roof Level Plan - 132 Spaces

Typical Level Plan - 140 Spaces

ATTACHMENT 1C

NEW-GREEN PARKING DECK CONCEPT

HUNTINGTON, NY