The Centralia City Council on Tuesday discussed raising rates for downtown tenants renting spaces in the city’s “mural parking lot,” located in the 100 block of North Tower Avenue.
The rate increase was recently announced and several tenants have spoken out during public comment at city council meetings this year complaining about it.
The rental rate was changed from $12 a month for a parking spot to $35 a month.
Centralia Finance Director Bret Brodersen gave a report during Tuesday’s meeting explaining the seemingly sharp rate increase.
“In March of ‘89, the city purchased the Mural parking lot,” Brodersen said. “... There are 17 stalls in this parking lot that have been leased by the city to various residents and business owners in the downtown area since that time. When we acquired that lot, rent was $12 a month, and it has not changed since we acquired the lot.”
In 2023, Brodersen said city staff started receiving complaints about the parking lot’s condition, and the Centralia Public Works Department estimated repairs will cost approximately $9,500.
“That includes repairing pavement within the parking lot and re-striping the stalls,” Brodersen said.
New lot signs, wheel stops and a chip seal surface were also included.
Along with this, Brodersen said the Centralia Police Department and the city attorney’s office found issues with the old parking lot lease agreement. leading to confusion in determining who could actually park in the lot and when parking enforcement actions could be taken.
This led to an updated lease agreement being drafted by the city and sent out last month, which also included the rental rate increase.
“These new agreements will allow for better enforcement of parking rules, and they do include increases in rent to adjust for required repairs and maintenance on the parking lot,” Brodersen said.
He said the rental rate increase will yield an estimated $3,800 in parking revenue per year, and Brodersen expected the lot to pay for its own repairs with this rate over the next two and a half years.
The rate increase was made using the consumer price index. For comparison, Brodersen said current downtown parking lot rental rates are $20 in Chehalis and $50 in Olympia.
“So our $35 a month price is right in the middle,” he said.
So far, approximately half of the new lease agreements have been signed and returned to the city, and mural parking lot improvements are set to begin as soon as the weather allows it this year.
“We plan to include these proposals in the spring 2024 budget amendment,” Brodersen said.
Other options for the parking lot were also brought up by Brodersen, including selling it back to a private owner or turning it into a first-come-first-serve parking lot like the others the city owns.
Centralia Mayor Kelly Smith Johnston asked if the city risked being accused of gifting public funds if they decided to keep the rate at $12.
“If the fair market value of leasing the spaces points to a certain price point, and we come in below that, then there could be a risk,” Centralia City Attorney Kyle Manley said.
No action was taken by the Centralia City Council during the Tuesday meeting concerning the mural parking lot’s rental rate increase.
