A new 225-space parking garage for the city is one meeting away from approval.
City council voted Thursday night to approve the first reading of an ordinance authorizing a 25-year bond issue for the project through PNC Bank.
The garage is part of the Centre City project that will bring a Marriott Springhill Suites hotel and a new Rite Aid pharmacy downtown.
While council is moving forward with supporting the garage, it still does not know exactly how much it will cost the city.
The approved ordinance sets a cap on the bond at $6.5 million, though it is unlikely the city will ultimately borrow that much.
Instead, the “not to exceed” cap allows the city to wait until the financial details of the project are better projected.
That ordinance also will allow the city to withdraw from the bond up until signing an agreement with PNC Bank, according to Anthony Ditka, the bond council for the city who is with the Dinsmore and Shoul law firm of Pittsburgh.
Representatives from J.S. Capitol Construction, the developer of the garage along with the rest of the Centre City project, estimates the total price of the garage to be about $4.1 million.
The estimated bond issue to cover that cost, along with refinancing part of the parking authority’s debt, would be $5.3 million to $5.8 million.