The state has entered into a long-term lease with the operators of the new downtown Hampton Inn for guest parking in its LaSalle Garage.
The garage is used by state employees and YMCA visitors, who will vie for spaces with the hotel guests.
Under the deal, the state will initially be paid $164,400 annually for use of 137 parking spaces in the garage. The rate goes up every five years throughout the potential 40-year lease.
The Hampton Inn and Suites is a 137-room facility at Main and Lafayette streets across the street from the garage.
State Division of Administration spokesman Michael DiResto said the Hampton Inn customers and employee use of the garage should not affect its use by state employees who work in the state buildings nearby.
Thousands of state employees work in downtown buildings that house the state Revenue, Natural Resources, Children and Family Services and other agencies. There are also hundreds of patrons of the YMCA located on the garage’s first floor.
The LaSalle Garage has 1,799 parking spaces.
“Given this is a hotel — whose purpose is to provide overnight stays to travelers and visitors — the guests will of course have 24-hour access to the garage,” DiResto said.
The garage has not been a 24-hour, seven-day-a-week facility in the past. It now becomes one under lease terms.
“Given the nature of hotel overnight stays, the utilization of the garage by Hampton Inn we expect will mainly be in the evenings after the bulk of state employees have left for the day, and for short periods during the morning,” DiResto said.
The lease agreement with Red Stick Hospitality has a 20-year initial term with options to extend for two 10-year terms.
The lease payment begins at $164,400 annually and increases incrementally until it’s $287,700 annually for the final five years of the initial 20-year term. With lease renewals thereafter, there is a similar increase every five years.
“The leased spaces shall be non-exclusive and non-designated by area or space and located throughout the garage, including the top floor,” according to the lease document.