The Republican candidate for Butler mayor questions the city’s plans for paying for the Centre City parking garage.

The city is looking to borrow $3.5 million to finance the garage through a bond issue.

Tom Donaldson, who wants to become the first Republican mayor in the city since 1985, is not sold on the plan.

“The mayor’s plan to borrow $3.5 million dollars to build a new parking garage for the Center City project is premature and reckless,” he said.

The money for the garage would be paired with the refinanced current debt of the parking authority, which the city would take over.

City council met with representatives from PNC Bank on Tuesday night to discuss the options the city has in financing the building.

Early estimates have the city taking on an additional $160,000 per year to pay off the 225 parking space garage. The parking authority pays $216,000 per year on its debts.

The city is expecting to reach a deal with the developers of the hotel for a guaranteed payment for a certain number of spaces per day. City officials estimate that agreement would cover about $90,000 of the additional $160,000 needed.

That would leave about $70,000 the city would have to make up to cover the cost of the project.

Donaldson said, “The developers’ promised payment of $90,000 per year does not come close to covering the costs associated with this project.

He said that is not enough to secure paying for the building.

“The only way that the city can make up that money is through a combination of increased real estate taxes or increased parking fees,” Donaldson said. “I do not support either option.”

Donaldson said he would only support a fiscally sound plan for the garage, but he did not specify what plan that would be.

One difference Donaldson said he would have made would be to have the developer pay more of the cost.

“I think the developer should shoulder more of the cost,” he said.

Democratic Mayor Maggie Stock, who is seeking her third term, said the proposed refinancing is not reckless.

“This plan has been developed with the city’s auditor’s input and other legal opinions,” she said. “It’s in no way reckless.”

Stock also said the city has no intent on raising taxes.

“City council has never discussed raising taxes,” she said. “The new parking would generate the additional money needed.”

Stock said she is confident the money raised through the parking garage, which will feature electronic monitoring, would cover the difference.

Both city officials and the developers of the project agree the garage is a vital aspect of the development of the hotel.

“We can’t have the hotel without parking,” Stock said. “And to not have the hotel would crush the economic future of the city.

“This isn’t a decision for tomorrow. It’s a decision for the next 20 years.”

Stock said the only way to advance the city is to take on debt.

“Cities need to borrow money,” she said. “You need to incur debt to move forward.”

Donaldson said he wants the Centre City project to succeed, but the city must be economically responsible in handling the garage.

“If you want to bring people into the city, the last thing you want to do is raise the fees to come in,” he said.

Council will vote tonight to appoint PNC Bank as the city’s investment banker to get a credit rating. This is the first step in getting the bond to finance the garage.

The election is Nov. 5.