A new plan to allow for the continued operation of the Pleasant Street Plaza in St. Joseph this summer has been approved by city commissioners.

The five-year plaza program was created by the city in 2020 to help nearby businesses offer outdoor seating during COVID, but now it’s expired. We reported this month that because the plaza uses public parking spaces for a private purpose, under state law the businesses in it are now required to pay a fee for the use of those spaces.

Commissioners on April 9 instructed staff to draft a pricing model, and they heard Monday from Development Director Kelly Ewalt, who told them what she considered.

“The existing vendor license agreement for sidewalk dining, the projected revenue value of an individual parking space under the downtown parking program, comparable sidewalk and vendor agreements within the city,” Walt said. “I looked at different municipalities and what they do in these situations, and I also talked to our parking consultants.”

Ewalt said a single downtown parking space could generate about $1,782 in a season, but she applied multiple reductions to reflect realistic use. In the end, she proposed the affected businesses pay $356 per on-street parking space used for private outdoor dining.

Commissioners approved the fee with an understanding this is just for one “bridge year” while something more permanent is established.

The city met with 221 Main, Silver Harbor Brewing Company, Union & Social, the 711 Building, the Market, and the Community Tap Room while drafting the proposal. A representative of the Community Tap Room thanked commissioners for continuing the Pleasant Street Plaza, saying when everyone works together, amazing things can be accomplished.