Development and Parking
When a church or not for profit group is looking at the possibility of redeveloping their property there are many questions that arise, one of the most discussed subjects is parking.
Two of the most common parking discussions are
1) Revenue from rented parking spots
2) How many parking spots will we need in the new development
Revenue from rented parking spots
When discussing parking revenue many organization members quote gross revenue, rarely figuring out the net revenue.
Example-Gross vs Net Revenue
Every year at their annual meeting Church A reports that 30 parking spots (12,000 sq. ft) were rented at $80 month providing $28,800 (gross) income for the year.When the idea of developing the property is raised congregation members wonder how will the church replace the of lost $28,800 in parking revenue.The first step is to calculate what would be the net parking income over the next ten years.
Determining the revenue and expenses over the next 10 years (revenue and costs are constant)
Total gross parking lot revenue–10 years x $28,800 = $288,000
Minor expenses-total $75,000 over 10 years
• Yearly Plowing-$1500 x 10 years = $15,000
• Recommended resurfacing every five years–Cost $2.50 sq. ft
• 12,000 sq. ft. of parking area x $2.50 sq. ft.= $30,000 every 5 years
• Remove and replace asphalt on 24,000 sq. ft. of parking lot
• 12,000 sq. ft. x $8 sq. ft costs = $96,000
Net Revenue over 20 year
$288,000 rent–$171,000 = $117,000 net income over 10 years
Actual net rent income $11,700 per yea
How many parking spots do we need?
Another contentious point during redevelopment discussions is how many parking spots are required in the new development.It is important to understand the cost of a parking spot when planning for a new development.
Cost of Parking
With ever increasing land costs adding parking spots becomes more and more expensive.A parking spot with laneways takes up approximately 400 sq. ft.
Below grade parking
The construction cost of one level of underground parking varies on location and the accessibility of the site for excavation