The city might drop the rate from $4 per square foot of public space to $1 per square foot, or somewhere in between.
Larkspur officials are considering new rates for the city’s outdoor dining fee.
The City Council heard a presentation on the topic at its meeting on Wednesday. The session focused on possible changes to the program after concerns were raised by downtown restaurateurs.
The fee has been suspended since a meeting in November. Staff will return with two new options for the council, which will hear public comments on the plan.
“We’ve shown you some options in here,” said Public Works Director Julian Skinner.
The council proposed a fee reduction from $4 per square foot to as low as $1 per square foot. Another option could be a $2 per square foot fee if a business occupies a parking space with its parklet.
The new plan also will consider expansions to outdoor dining, which is only allowed on Magnolia Avenue. The council will later consider surrounding neighborhoods, called the storefront and garden district zones, for expanded access to the outdoor dining program.
The council adopted a framework for the program at a meeting in June 2022, giving staff the ability to implement policy to lease the public right of way to restaurants. The system applied to encroachment permits for any business using public space.
The fee schedule for the program allowed the public works department to set the cost per square foot at the prevailing market rate.
Generally, the system limited restaurants to no more than two parking spaces for parklets and set a cost of $4 per square foot for use of the parking spaces and sidewalks.
Councilmember Gabe Paulson said he supports the modifications in order to promote a quality-of-life benefit such as outdoor dining.
“We really do see a lot of demand and interest in outdoor dining,” he said.
Councilmember Catherine Way said the city also has a responsibility to protect public areas, which could be used by a private business.
“We do have an obligation for the public right of way in a public policy way if a business is using the public right of way, there is an obligation to compensate the public for the use of that space,” she said.
Councilmember Kevin Carroll said focus should be placed on parking downtown and the appearance of the commercial district.
“We got feedback from the non-dining merchants that they hated parklets,” he said.
Only Restaurant Picco has paid the fee and is operating outdoor dining under a city encroachment permit. The business leases about 150 square feet for about $600 a month. Emporio Rulli, a café on Magnolia Avenue, has inquired about developing a three-parking space parklet in front of the business.
Emporio Rulli has sought to lower its potential fee. At $4 per square foot, the design would result in a monthly fee of $1,800. The business has obtained an encroachment permit for tables and chairs for outdoor furniture in the public right of way.
The city established a temporary outdoor program in the spring of 2021. With various extensions it lasted through the end of 2022.
The city, like other municipalities in Marin, developed the parklets to help struggling businesses and restaurants generate revenue during the pandemic, when indoor gatherings were not allowed.
