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Council approves short-term lease extension for Welch Lot T, and directs legal review of tax status
Summary
The council approved a two-year extension and adjusted rates for the privately owned Welch Lot T parking area in Campus Town to offset operating losses. Staff will negotiate a lease and evaluate longer-term parking strategy; the council also asked the legal department to review property tax treatment for leased parking properties.
The Ames City Council on Monday approved a short-term extension of the city’s lease for Welch Lot T in Campus Town, and directed staff to pursue a two-year agreement that includes adjusted parking rates to make operations nearer breakeven.
City staff explained that Welch Lot T (a surface lot used for public parking in Campus Town) has operated at a loss because the city leases the land rather than owns the parcel; the lease also requires the city to pay a pro‑rata share of property taxes. Staff proposed several options, including letting the lease expire and relying on the intermodal lot, negotiating a short-term two-year extension with higher rates for that lot, or entering a longer lease with CPI adjustments. City staff recommended a short-term extension while the city studies broader downtown parking policy.
Council approved a two-year extension (staff option) that would increase hourly meter rates in Welch Lot T (proposed in staff analysis as roughly $1.50 per hour versus the lot’s prior $0.50 an hour) and raise monthly reserved rates (staff example moved from $50 to $80 for illustrative modeling). Council also directed the city attorney to analyze the property-tax treatment for leased parking property; staff noted that the county assessor had advised the leased lot is taxable even when used by a government agency.
Why it matters: Campus Town business owners and customers rely on nearby parking supply. Staff said a short extension gives the city time to evaluate a larger parking strategy — including whether to increase rates more broadly, develop structured parking, or otherwise alter parking policy — while preserving customer access. The owner of the lot is reported to be cooperative in negotiating terms.
Council action: Motion to approve the two-year lease extension proposal and to direct legal review of taxation of the leased lot. Motion carried on roll call.
