06/12/1985 Meeting - Laserfiche WebLink

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-. M E M 0 RAN 0 U M e June 12, 1985 TO: Eugene City Council FROM: Eugene Devel~pment Department SUBJ ECT : PROPOSED SIDEWALK VENDING BUSINESS LICENSE Background On April 22, 1985, you took testimony from citizens on the proposed Sidewalk Vending Business License. Given the amount of testimony, you discussed the recommended changes at the study session on May 22 and May 29. The one issue that remained unresolved at your last study session was how to determine the amount of right-of-way fee that should be charged to vendors. We have developed four options for your consideration. Alternative One: The amount of right-of-way fee shall be based on the fair rental value of the premises for which the license is issued, to be determined by comparison to charges for concession or lease of other City property or similar private property. e Alternative Two: The amount of right-of-way fee shall be based on the fair rental value of the premises for which the license is issued, to be measured by the income-producing value of the premises. Alternative Three: The amount of the right-of-way fee shall be determined by the highest offer after competitive bidding has occurred. The City Manager may reject all bids and charge a right-of-way fee which shall be based on the cost of maintaining the sidewalks, if that" fee would be greater than the highest bid offered, Alternative Four: The amount of right-of-way fee shall be based on the cost of maintaining the sidewalks, which sha 11 include repair and cleaning. Discussion To get an idea about what fair rental value might be, we talked to people who manage retail property that has high traffic volume. While the variables used to determine the rental costs of those properties may not be what would be used to determine right-of-way fees, the information provides parameters for the discussion. The following summarizes the research. Permanent Retail Space: One location charges vendors more per square foot than other businesses because all of their space is used to generate income, whereas other businesses have space that is used for traffic, e bookkeeping, and so forth. The base rent for vendors starts at $3 per square foot and can go up to $4.50 per square foot by the time fess for . maintenance, garbage co11ction, advertising, water, and utilities are added in. Other locations charge rents that vary from $.50 a square foot to $.85 per square foot, plus a percentage of gross sales. They may also pay for advertising, maintenance, electricity, security, and parking.