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The city and waterfront redeveloper Asbury Partners have finally reached an agreement regarding three surface parking lots in the waterfront area.

The 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 600 parking spaces.

Asbury Partners owns the lots and has allowed boardwalk redeveloper Madison Marquette to use them for valet parking and paid parking in the past. The city granted Asbury Partners permission to use the lots until Oct. 1, 2012. Special permission is needed because surface parking is not a permitted use under the waterfront redevelopment plan.

Now, the city and Asbury Partners have inked a new deal that allows the surface parking lots to be used as such until Dec. 31, 2016.

Under the new agreement, the city will receive 15 percent of the annual gross revenue generated by the parking lots after payment by Asbury Partners of sales taxes, operating expenses and property taxes.

Asbury Partners has the right to abate or reduce parking charges for employees, management and owners of local businesses operating near the lots. They also have the right to abate or reduce charges in the off-season between Labor Day and MEmorial Day, and to establish special rates for patrons of public and private events held at venues near the lots.

All abatements and price reductions are subject to approval by Asbury Partners and a parking committee consisting of city manager Terence Reidy and two council members, the agreement reads.

The future of these parking lots has proven controversial over the past several months. Officials from Madison Marquette — which recently became a minority partner in Asbury Partner — said they would scale down their redevelopment efforts on the boardwalk if their access to the lots was hindered.

When reached for comment, Madison Marquette senior vice president Anselm Fusco said the group was unprepared to make a statement at this time.

An official from Asbury Partners, Brian Cheripka, confirmed that anyone wanting to use the lots for valet parking or reduced parking would need permission from the committee and Asbury Partners. Cheripka is vice president of land for iStar Financial, the majority owner of Asbury Partners.

The lots will be operated by independent parking operator LAZ Parking, according to the agreement.

If Asbury Partners decides to develop one of the lots and end its use as a surface parking lot, they must notify the city within 90 days of termination of the agreement, according to the agreement.

The developer is required to provide the city with a budget containing anticipated expenditures for improvements to and maintenance costs for the properties 30 days in advance of each calendar year, and must provide the city with its 15-percent revenue within 30 days of the last day of the calendar year.

Rates for parking spots are required to be “reasonable, generally consistent with rates charged for surface parking in the city,” and recommended by LAZ Parking after the firm consults with Asbury Partners and the city, the agreement reads. The charges are subject to approval by Asbury Partners and the city.

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