Butler will get a new 225-space parking garage, but it will be built by a developer, not the city.

Representatives from the city, parking authority, and redevelopment authority met privately Tuesday with members of J.S. Capitol Construction to discuss the Centre City Project, which would also bring a Marriott Springhill Suites hotel and a new Rite Aid Pharmacy downtown.

Each of the groups agreed to develop a plan that would have J.S. Capitol Construction, the developer of the hotel and pharmacy, acquire the parking garage property, build the garage, and then sell it back to the parking authority, according to city treasurer Jeff Smith.

The plan is expected to allow the project to proceed more quickly and at a significantly lower cost than the previous plan of having the Parking Authority build the garage.

Under the previous plan, the city would pay for the estimated $4.5 million project through a bond issue, which would likely add more than $1 million in additional interest and fees.

Councilwoman Cheri Scott, one of two council members at the meeting, said, “(The developer) can get material cheaper. They can buy it in bulk and they are better connected to different resources than we are.”

Councilman Richard Schontz, who was also representing the city, said the savings could be significant.

“It could be about $1 million cheaper for them to build it than what our original cost would be,” he said.

While it will be cheaper for the developer to build the garage, the city will lose out on some of those savings by needing to purchase the property when finished.

Scott said the developer would sell the garage back to the authority for the project cost plus its additional fees.

That price has not been discussed, but the city and parking authority would have to approve the developer’s proposal before an agreement would be finalized.

Regardless of what that price may be, the city expects the final cost to come in lower than what it would take if the parking authority built it.

“There could be substantial savings,” Scott said.

Smith said the project will certainly go faster through a private developer.

“With any kind of project, municipalities have a lot more steps to do because they are using public money,” he said.

“I think it is going to be the best scenario to expedite the project,” Scott said.

The new agreement is expected to be finalized within the next 30 days.

Only two representatives from each agency were at the private meeting, to stay in accordance with the Sunshine Act.

Any final decision on the plan will need to be discussed and voted on at a public meeting.

Smith said there could be specially scheduled meetings in upcoming weeks to move the plans along.

“All parties are committed to having this done by the end of (February),” he said.

Smith said everyone at the meeting was happy with the proposal.

“There was absolutely a lot of excitement when everyone left the room,” he said. “The meeting was a great example of what can happen with open communication and everybody having a common goal.”

Schontz said it was major step in getting the project going.

“We’re very excited and very optimistic,” he said. “It’s now looking good for all three phases of the project, which should be a real boost to economic development downtown.”

Both the parking and redevelopment authorities also supported the plan.

“This was a very successful meeting and everyone is now on the same page with the same goals,” Jim Chiprean, chairman of the parking authority, said in a statement. “I am looking forward to working with J.S. Capitol on this important project for the city.”

Art Cordwell, executive director of the redevelopment authority, said he is in favor of anything that advances the project.

“(The meeting) went very well,” he said. “It was the first time I saw all parties sitting together around the same table working to get this going.”

Cordwell said the project remains vital to economic growth in the community.

“Your community needs to grow or it’ll die,” he said. “We don’t want to see Butler die. But it can’t sit still because everyone else is moving forward.”

J.S. Capitol is expected to close on its property on Feb. 6 and is expect to begin construction of the new Rite Aid soon after.

“They want shovels in the ground right after that,” Scott said. “It’s exciting to see it come to fruition.”

While city officials are excited for the new sense of direction, there is still work to be done in the upcoming weeks.

City council and the parking authority will hold a special meeting at 7:30 p.m. Tuesday to finalize and approve a few lingering property issues involving the project.

The first of which involves the parking authority transferring of a plot of its land to the redevelopment authority.

The roughly 87-by-61-foot plot is part of the property allotted for the proposed Rite Aid pharmacy. The parking authority will transfer the property to the redevelopment authority, which will then sell it to J.S. Capitol as part of its land purchase agreement.

The deal dates back to a 2007 agreement, but must be formally finalized before the developer closes on its purchase next month.

The city also will approve a property line adjustment to make room for the widening of Cedar Street. The street will be widened from 20 feet to 30 feet to allow for two-way traffic.