By Thomas K. Pendergast

The San Francisco Recreation and Park Department’s plan to take ownership of the Music Concourse parking garage in Golden Gate Park cleared two hurdles in June, although any changes to parking fees there will not happen until sometime after Nov. 1.

The actual operation and management of the 800-space underground garage, however, will go to the San Francisco Municipal Transportation Agency (SFMTA) after its board of directors unanimously approved adding $27 million to its existing contract with garage operators.

The garage is currently leased to and operated by the nonprofit Music Concourse Community Partnership (MCCP), which serves visitors to the California Academy of Sciences, de Young Museum, Botanical Garden and Japanese Tea Garden.

On June 4, the SFMTA Board approved amending the contract to compensate IMCO Parking, LLC, for additional management fees and reimburse the approved operating expenses of the garage for a total contract of $207 million.

During that meeting, Vice Chair Stephanie Cajina asked about the extra $27 million and where it will come from.

“That’s quite a big price tag,” Cajina said.

Rob Malone, acting director of Parking and Curb Management Operations, broke it down with a detailed explanation.

He said although SFMTA will manage the garage, Rec. and Park will be paying the additional money by reimbursing the agency, which the department will recoup from the parking fees they charge.

An administrative fee is paid annually by SFMTA for the staff time it spends overseeing Rec. and Park garages, of which there are – with this one added – five, and an additional facility that is half owned by the SFMTA and half by Rec. and Park.

Cajina then asked if they have enough staffing to take this on. Malone said yes.

“We currently manage 21 full-service, off-street parking facilities. This is adding one additional one; no significant impact to staff made,” he said.

“And when do we envision that the public would start seeing some changes in parking fees?” Cajina inquired.

Malone responded that multiple parts involved in the fee changes require final action by the SF Board of Supervisors.

“There’s a schedule of those that, at the moment, tentatively plan to go through the last quarter of this year,” he explained. “Anything that long, of course, there’s a certain uncertainty in some of those timings, but at some point, at the appropriate time, one of those several visits that are going to be required to the Board of Supervisors. This contract item that we are asking for this board’s approval on today does need subsequent approval by the Board of Supervisors as well.

“I would estimate right now, give or take, Nov. 1 is probably the earliest when the MTA contract would be the one that would be in force. However, the current operator now at the facility is Imperial Parking.”

He further explained that the entity that they are asking to add this contract to is a joint venture called IMCO Parking LLC and the senior member of that joint venture is Imperial Parking.

The extra $27 million will compensate IMCO’s additional management fees of $1,600 per month and reimburse IMCO for pre-approved garage operating costs of $300,000 per month.

In 1998 the voters passed Proposition J, which set aside land for the garage and placed it under the jurisdiction of the Golden Gate Park Concourse Authority (GGPCA), a nonprofit corporation controlled by the City.

In 2003, the GGPCA and the department leased the land to the MCCP and tasked them with constructing and operating the garage. The MCCP raised $36 million from private donors and took out loans to cover the remainder of the $55 million needed to construct the garage, which was completed in 2005. The MCCP is required to repay the construction debt on a certain schedule, and when that debt is fully repaid, the lease will terminate and the garage will be transferred to the department.

In November 2022, voters approved Proposition N, which authorized the City to use public funds to acquire and operate the garage.

“So, it would really be a change that won’t be overly noticeable on the ground to the customers,” Malone said. “It’s the same company at the back end. It’s the same staff, will still continue to be working there; those who are regulars and know the staff, it will be the same faces. It would just be the contract behind it, their work will change to an MTA-held contract.

“And then at that point … MTA will have a more direct role in policy consideration, including rates, hours, etc.,” he elaborated. “And we of course will work very closely with our wonderful colleagues at Rec. and Park, as well as with representatives of the museums and other user groups that use the park regularly.”

The current parking rates have been contentious because some consider them too pricey and discouraging for visitors.

On June 20, the SF Recreation and Park Commission unanimously adopted an ordinance transferring the garage to the department’s jurisdiction.

According to department documents, the current annual debt service on a loan by First Republic is approximately $2.1 million and the new financing will be structured at or below that debt service.

“This transfer will secure efficient and professional management of the Music Concourse Garage and allow us to implement policies to expand access for all,” the department’s General Manager Phil Ginsburg said.

“The SFMTA looks forward to working collaboratively with the Recreation and Park Department, the museums and all other groups who regularly use Golden Gate Park to develop a suite of on-street and off-street parking policies and programs that promote efficient and equitable access for all,” SFMTA’s Acting Streets Director Ted Graff said.