The bank that will be lending the city money for the Centre City project wants a sign from the city on how to proceed with a bond issue, and council appears ready to take that step on Thursday.

City solicitor Jim Coulter said city officials will have a conference call with PNC Bank today to get a better understanding of the time frame of moving forward.

The city is waiting for developer J.S. Capitol to finalize its loans and other agreements for the proposed downtown hotel before moving forward with its proposed $5 million parking garage. The neighboring hotel will be the second piece of the Centre City project.

Coulter said the city can move forward with the garage and begin the process to take a $7 million bond issue that would pay for the structure, as well as refinance the existing parking authority’s debt and pay for the West New Castle Street bridge replacement project.

However, if the city does not feel the developer will close on its deals before the city’s bond issue expires Sept. 14, the city can take a smaller $3 million bond issue to pay for the parking authority’s debt, the bridge project and other work.

“The city needs to give guidance with the bond issue,” Coulter said.

The city will not be committed to any bond following Thursday’s meeting, Coulter said. It will simply be telling the bank which direction it intends to go.

The city redevelopment authority, which will own 25 percent of the hotel, said last week it expects the developer will close on those loans Sept. 9, giving the city time to award contracts for its proposed garage and sell bonds to fund the work.

Mayor Tom Donaldson expressed more concerns about the Centre City project, despite the optimistic update from the redevelopment authority last week.

“I still have questions about the time frame the city has left,” he said at council’s meeting, adding he doesn’t have full confidence in the “rosy” picture the redevelopment authority painted.

Coulter said the city would have time to award contracts for the garage and to sell its bonds if the developer closes on the expected date.