Parking rates going up at Heavenly Village garage
The South Lake Tahoe City Council voted unanimously Tuesday to raise rates at the Heavenly Village parking garage in order to bridge the growing gap between revenue generated by the garage and the costs of operation.
Redevelopment Director Eugene Palazzo told the council that the estimated 2006-’07 revenues from the garage will fall $138,000 short of covering the city’s expenses in operating the facility.
The current rate at the garage is $1.50 per half hour, with a maximum charge of $20 for a 24-hour period. Under the plan approved by the council, rates will go up to $1.75 per half hour, with the maximum charge for a 24-hour period increasing to $23.
The garage now offers weekday (five-day) passes for $50.
Under the new rates, discounted weekday passes will be eliminated, and only a full-access monthly pass will be available. The rates will be $75 per month from April through October, and $175 per month from November through March.
No changes are proposed to the validation program, which sells validation coupons at half price, and has been utilized by about half of the Heavenly Village shops, according to the staff report. Palazzo pointed out that not changing the validation program, while at the same time raising rates, actually makes the validation program a more valuable marketing tool for participating businesses.
The new rate structure will continue the four-hour validation for the Heavenly Village Cinema.
Palazzo and Finance Director Christine Vuletich iterated the immediacy of approving the rate changes, as there is roughly $8.45 million in principal and interest outstanding on the parking garage bonds taken out to build the facility. To default on the bonds could result in a negative credit rating of the Redevelopment Agency and the city itself, Palazzo said in a written report.
Councilman Mike Weber made the motion to pass the proposed changes to the public parking garage rates. The motion passed 5-0.