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Delray commissioners kill Atlantic restaurant incentive

By David Sedore, Palm Beach Business.com

DELRAY BEACH — By the narrowest of margins, Delray Beach city commissioners put an end to a 1990s-era incentive created to bring restaurants to the city downtown.

By a 3-2 vote Tuesday evening, commissioners doubled parking requirements for new restaurants opening up along Atlantic Avenue between Swinton Avenue and north-bound Federal Highway. New restaurants will be required to provide a minimum of 12 parking spaces per thousand square feet of floor space as opposed to the six previously required. That’s the same standard restaurants in other parts of the downtown must meet.

The change only affects restaurants that are converting retail space rather than moving into a location previously used as an eatery. It also doesn’t prohibit developers from converting retail spaces to restaurants.

The city in the early 1990s established the six-parking space requirement as a means of encouraging restaurants to move to Atlantic Avenue. The difference can be worth tens of thousands of dollars in savings to a developer, making it more cost-effective to put in a restaurant on Atlantic than in other parts of the downtown.

But critics have argued that the parking incentive has outlived its usefulness to the point that it’s killing off the avenue’s shops. They also argue that it’s putting a strain on downtown parking.

Commissioner Tom Carney noted that the change is supported by the city’s Community Redevelopment Agency, the Downtown Development Authority, the city’s Planning and Zoning Board and the West Atlantic Redevelopment Coaltion.

“At worst, it will slow down the conversion of retail to restaurants in this small area,” Carney said. “At best it will encourage development of restaurants in other area.”

Commissioner Adam Frankel, who opposed joined Mayor Woodie McDuffie in opposing the ordinance, said the 12-space requirement will change Atlantic Avenue, and not for the better.

“To me, this ordinance is going to cause vacancies on Atlantic Avenue,” Frankel said. “Major vacancies.”

McDuffie said the ordinance alone isn’t going to save retail on Atlantic. He said developers aren’t building retail shops because in the current economic climate and consumers’ shift to the internet, it’s too risky. He cited CityPlace in West Palm Beach, which is heavy in shops and lighter on restaurants but is also in foreclosure.

“I think we’re missing the mark if we think this will solve our retail problem,” McDuffie said.

Commissioners Angeleta Gray and Jay Alperin voted in favor of the ordinance. Alperin was a member of the city commission when the six-space requirement was enacted.

In related matters, commissioners:

— Approved so-called in-lieu parking spaces for two restaurants going into the downtown, one at the site of the former Ace Pump store, 9 NE 2nd Avenue, the other at the site of the former VFW club at 5 SE 2nd Ave.

The NE 2nd site requires 6 space at a cost of $15,600 each, for a total of $93,600; the SE 2nd site requires 8 spaces also at a cost of $15,600 a piece, for a total of  $124,800.  In-lieu spaces are used when a business doesn’t have enough parking on its  property to meet city requirements.

— Approved a waiver to allow the Hyatt Place Hotel to operate a bar. The hotel is to be built within 750 of another bar, making the waiver a necessity.