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The city is currently in negotiation with iStar Financial and Madison Marquette to create a new agreement governing the use of three surface parking lots in the waterfront redevelopment area, city manager Terence Reidy said.

Reidy expects the issue to be resolved within the next 30 days, and says the lots will definitely be available for surface parking this summer.

“What we’re looking at right now is how we can accommodate the various needs of people coming to the city and supporting the businesses on the waterfront,” Reidy said. “It won’t be putting a few parking meters up and turning off-street parking into on-street parking. We think there’s a value to having off-street valet parking as well as on-street metered parking.”

The three parking lots are located adjacent to the Carousel building at the end of Cookman Avenue; on Ocean Avenue between Second and Third avenues [pictured above]; and on Fourth Avenue next to the Wonder Bar. In total, they contain about 500 parking spaces.

In the summer, Madison Marquette charges motorists to park their cars in the lots. Their payments do not contribute to the city’s parking utility, as payment for a spot on the street would. The lots are also used as valet parking for various events. Sometimes, parking in the lots does not require payment.

The city cannot place meters on those lots without permission from Asbury Partners, which owns the property, Reidy said. Also, the lots are sometimes used for valet parking for special events, and the city would not want to disrupt that, Reidy said.

The waterfront redeveloper Asbury Partners — owned mostly by iStar with a minority share owned by Madison Marquette — owns the lots. For the past five years, Asbury Partners allowed Madison Marquette to use the lots for events and boardwalk businesses.

According to Reidy, the agreement to allow Madison Marquette to use the lots was struck up “basically to support retailers starting up and investments on the waterfront,” he said.

For permission to use the lots, Madison Marquette had to appeal to the redevelopment authority, which is the city council, according to city redevelopment director Don Sammet. The initial approval was given in 2008.

Asbury Partners cooperated with Madison Marquette to allow them to use the lots. Madison Marquette was not a minority partner in Asbury Partners until last year.

The planning board gave a site plan approval that is in effect as long as the council allows the use, Sammet said. If the council again allows the use of the surface lots for parking, the planning board will not need to take further action, he said.

Now that the agreement has expired, the city is at the table with Madison Marquette and iStar. The issue was discussed in closed session before the Feb. 20 council meeting.

The agreement was slated to expire in October 2012, but the city agreed to extend it until December 2012 so as not to disrupt parking plans for Madison Marquette’s events.

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