BACKGROUND:
On August 24, 2022, the San Luis City Council authorized a contract with James Davey & Associates for the amount of $266,795.00 to design the Downtown Plaza and Parking Lots project. An additional $85,400.00 was allocated in June 2024 to finalize the design and engineering. The completed design, finalized in July 2024, envisions the transformation of underutilized federal land adjacent to Main Street and the San Luis I Land Port of Entry into a 475-stall parking facility and pedestrian plaza. This shovel-ready project will establish a modern hub to serve residents, workers, pedestrians, and cross-border travelers.

FTA’S BUSES & BUS FACILITIES PROGRAM:
The Economic Development department is seeking authorization to apply for the Federal Transit Administration’s FY 2025 Buses and Bus Facilities Program under Section 5339(b), which funds capital projects that enhance bus infrastructure, including transit facilities and park-and-ride lots. The program provides up to 80 percent federal funding for eligible activities. Past projects with similar scopes have been awarded in communities such as:

• Loveland, Colorado (a $3.97 million transit center and park-and-ride)
• South DeKalb, Georgia (a $25 million multimodal hub)
• Antioch, Tennessee (a $5 million transit center)

The City of San Luis's proposal builds on these precedents by focusing on core infrastructure that enhances local and regional mobility.

PROJECT SUBMISSION:
The grant application will request funding exclusively for eligible transit-related infrastructure. This includes the construction of a 475-stall parking lot with associated curbs, paving, and lighting; utility upgrades for water, sewer, and electrical systems; a redesiging a proposed police subsation to a transit hub building with shaded waiting areas; and three designated YCAT stops to connect with the regional bus network and expanded San Luis I Port of Entry. Additional pedestrian infrastructure will include ADA-compliant walkways, benches, shade structures, and bicycle racks. Landscaping will be limited to functional elements such as shade trees, groundcover, and stormwater swales. Approximately $2.5 million in park-specific amenities, such as splash pads and event stages, will be excluded from the grant request and instead funded through local capital or other sources.

PROJECT TIMELINE:

• City Council Resolution & Match Commitment: July 9, 2025
• Application Submission Deadline: July 17, 2025
• Anticipated Award Announcements: Fall 2025
• FTA Obligation Deadline: September 30, 2026 (all funds must be obligated by this date)
• Local Match Obligation & Project Start: July 1, 2026 (Start of FY 2027)
• Estimated Construction Completion: Late 2027

PARKING REVENUE FORECAST: 
The project’s financial model includes a flat daily parking fee of $3.00 and monthly long-term permits. Revenue forecasts suggest that the City’s $1.06 million local match can be recovered within three years under a low-demand scenario (60% occupancy), within two and a half years in a moderate-demand scenario (80% occupancy), and within two years in a high-demand scenario (90% occupancy). Once the initial investment is recouped, parking revenues can be reinvested into long-term lot operations and phased completion of the plaza’s park components.

Staff recommends that the Mayor and City Council adopt Resolution No. 2365 to authorize submission of the FY 2025 FTA Buses and Bus Facilities Program grant application and to commit $1,060,100.00 in local matching funds to be allocated in the Fiscal Year 2027 budget, effective July 1, 2026. This action will position San Luis to secure federal investment for this transit project that enhances community connectivity.