Parking lot plan riles business owners
A plan to replace the Centre City project's parking garage with a surface lot has upset business owners surrounding the site.
The city parking authority last week announced a tentative agreement with J.S. Capitol Construction, the developer of the project, to build a 75-space surface lot near the corner of East Cunningham and South McKean streets.
The lot would replace a 225-space parking garage originally planned to be part of the project, which also includes a 75-room Marriott Springhill Suites hotel and a Rite Aid Pharmacy, which is under construction.
While the garage would include parking for both the public and the hotel, the surface lot is planned only for hotel guests.
It's a move that has brought criticism from property and business owners.
The parking authority previously operated three lots with more than 150 total spaces in the block of the Centre City project, which is surrounded by South Main, South McKean, East Cunningham and East Jefferson streets.“I think they need to accommodate the parking that was there for businesses,” said Joe Gray, owner of the Cornerstone Commons building at the corner of South Main and East Cunningham streets. “They shouldn't be taking that away and giving it to Rite Aid and the hotel.”The spaces lost to make way for the hotel and Rite Aid were to be replaced with the garage.Authority Chairman Jim Chiprean stressed his board is still seeking to make up for the lost parking through additional surface lots nearby.“I'm working on it,” Chiprean said, adding the authority is looking to add about 100 spaces in the area. Chiprean wouldn't say where the surface lots would be, but said he is confident he could find options.The authority signed a five-year lease earlier this year to rent the Covenant United Presbyterian Church parking lot on East Jefferson Street.That lot was intended to make up for the some of the spots lost when construction of the Rite Aid began.The authority is paying $500 per month for 42 spaces in the lot, each available for a $30 monthly permit.“I know it's a block away, but we reduced the price of the permits,” Chiprean said. Most monthly permits for parking in the city cost between $40 and $50.The authority also bought a 28-space lot by the city building on West North Street earlier this year.Gray said there have been between 100 and 130 spaces available in the block for years.“Those are the numbers that should be replaced,” he said. “Zero shouldn't be the number.”
Chiprean said the authority had little choice but to approve the surface lot unless it wanted to raise parking rates throughout the city.“We have not raised rates in seven or eight years,” he said. “The garage likely would require a substantial rate increase.”The surface lot is estimated to cost about $450,000, while a 225-space garage would cost about $4.5 million.The lot would be budgeted through the parking authority, which manages most parking in the city. But the 20-year loan used to pay for the parking ultimately would be backed by the city itself.Authority treasurer Jeff Smith estimated at the authority's Sept. 24 meeting that the garage would bring with it a more than $100,000 per year deficit the authority would need to make up through rate increases and other measures.That figure was based on a 50 percent occupancy rate at the hotel.Chiprean said all parking across the city likely would be impacted to finance a garage.“I don't think one lot or one garage would make up the difference needed to pay that loan,” he said.The surface lot is estimated to give the authority $15,000 in profit annually using the same 50 percent occupancy rate.Mayor Tom Donaldson said the city supports the surface lot proposal.“The city does not have the wherewithal to take a risk on (the parking garage),” he said.Donaldson said he has heard the concerns of property owners along the block and said the city is looking into options to solve their problems.“We don't want to hurt existing business,” he said. “The city is just not in a position to take out a $3.5 to $5 million bond issue.”Donaldson said the city cannot risk financing the garage that isn't guaranteed to pay for itself.“I have to keep the financial interest of the city in mind,” he said. “I'd like to stay more on the conservative side in doing that.”Donaldson added that the authority still has the ability to add a tier garage to the lot later if business develops.
The move to the surface has left businesses wondering where their customers and employees will park.Gray said he wouldn't have a problem with the authority making up the lost spaces through surface lots as long as they are close enough.“Parking is parking as long as it is convenient to businesses in that area,” he said. “If it's not convenient, then people won't go to those businesses.”Dr. Swamikkan Nallathambi, whose office is at 131 E. Cunningham St., said he is skeptical of the authority's ability to add enough parking near the block.“There's not enough space,” he said. “They can't create space. They're only human.”Nallathambi said the parking disruption been a headache for his patients.“Many people are having immense problems,” Nallathambi said. “We had a 92-year-old lady come in today with foot problems, and she had to walk because she couldn't find a place to park.”Nallathambi said he hopes city officials will reconsider the tier garage.“It's an intolerable situation for our patients,” he said.Nallathambi, who has been practicing in the building for 25 years, said the parking situation has led to numerous appointment cancellations since construction began. He said the problems could force the practice to consider moving.“If it comes to that, we may have to (consider moving),” he said. “That would be terrible because we have a big investment in this building.”Chelynne Curci, Main Street manager for Butler Downtown, said the loss of the garage hurts businesses in the city.“We're disappointed in the decision,” Curci said of her nonprofit. “We feel it is shortsighted and negatively impacts existing businesses.”Curci said parking garages spur economic development.“New businesses need parking spaces for customers,” she said. “We think this decision will thwart future development in the city.”Russell Hearn, owner of the buildings at 138 and 140 E. Jefferson St., said not building the garage would be a “stupid mistake.”“We in the community have been supportive of a new city center that would bring more people downtown,” he said. “We've been supportive of a new hotel. We've been supportive of a new drugstore. We've been supportive because we've always been promised a parking garage.”Hearn's properties are rented by a dentist, real estate agent, barber shop and a psychologist.He said the businesses around the project have put up with the temporary loss of parking during construction because of the long-term benefit of a parking garage.He said that long-term benefit is now gone.“This is just devastating,” he said. “I'm trying to run a business. It's difficult to get quality tenants to come downtown. It's even harder when there's no parking.”Hearn also was skeptical that the authority can find enough space for additional surface lots.“I don't think the space is there,” he said. “And if it is, that will take time and more money.”
Hearn said he and other business owners are talking about starting a petition against the project unless a parking solution is presented.Hearn said business owners were caught off guard by the announcement there would be no garage.“I think there should have been a public meeting on this,” he said. “I think there still needs to be a public hearing specifically for this.”The parking authority is expected to discuss the project at its Oct. 22 meeting.Hearn said after hearing about a proposed garage for years, the authority decided to go with a surface lot in the “eleventh hour.”Gray, who spoke against the parking lot idea at the authority's last meeting, agreed with Hearn in saying the authority should have had more discussion about the change to a surface lot.“I wish the parking authority would've began planning this a little sooner,” he said. “It would've been nice having this debate a year ago.”Gray, a board member of the city redevelopment authority, which will be a 40 percent owner of the hotel, said he has not heard of discussions of a surface lot despite being involved in the project.Chiprean said the authority had to wait for the project developer to get financing for the proposed hotel before advancing with the parking. He said the developer now needs an approved parking plan.J.S. Capitol received a $3 million loan from NexTier Bank in August for the hotel.Two representatives from the parking authority met with the developer shortly after financing was approved to discuss the garage, and determined the surface lot made the most sense.Gray hopes city officials can meet to discuss parking in the area.“I'm confident the parking authority, the redevelopment authority, and the city can come together and resolve the issue,” he said. “We can come up with a plan that is good for everybody.”
