There is a possibility the city may not be set to own a new parking garage after all.

The city Parking Authority on Wednesday evening listened to different proposals concerning options for constructing the proposed 225-lot parking garage that would be part of the city’s Centre City project.

That project also would bring a Marriott Springhill Suites hotel and new Rite Aid pharmacy downtown.

One of the options the authority expressed interest in was having J.S. Capitol Construction, the developer of the hotel and pharmacy, take over ownership and development of the garage.

Jeff Schmitz, the owner and president of J.S. Capitol, expressed concern to the authority over a lack of progress in the parking garage.

Schmitz said his company will complete final purchasing agreements for the hotel’s property on Feb. 6, and expects to begin construction soon afterward.

But Schmitz said his group needs an update on the parking garage before construction can begin.

“I cannot move forward with the project without knowing where the parking is going to come from,” he said.

City council approved an ordinance last month allowing it to spend up to $6.5 million through bond issues on the project. But the parking authority, which will manage the structure, still is exploring what it would take to build the garage.

That process involves having design plans done for an estimated cost of construction.

Schmitz first made a proposal in which J.S. Capitol would be the construction manager for the garage, highlighting the coordination it would be able to offer in building all three structures. Under that scenario, J.S. Capitol would charge an estimated $330,000 in developer and construction management fees.

But Schmitz also suggested his company could build the garage and lease it to the city for an annual fee, saying also the city would then still have an option to buy the garage at any time.

The authority expressed interest in the offer, but any decision would have to go through city council.

Jeff Smith, who is the treasurer for both the city and the parking authority, said it seemed to be an attractive offer, but that the authority would have to compare it to financing the proposed bond issue.

Schmitz tossed an annual lease figure of 10.5 percent of the project’s cost, though the number could be negotiated.

If the project costs an estimated $4 million, the annual rate at 10.5 percent would be about $420,000. The parking authority would still be responsible for an estimated $25,000 in annual maintenance as well.

Councilwomen Kathy Kline and Cheri Scott, who were at the meeting, said the original plan for the project was for the developer to build the garage.

“Up until six months ago I thought this was the plan,” Kline said.

Scott said confusion and a lack of communication have slowed the process.

“The real issue is there has been a failure to communicate effectively, and it’s unfortunate,” she said.

Neither councilwoman passed blame onto the parking authority, saying it has been careful through the process.

“The authority should be applauded for doing its due diligence,” Kline said.

The authority also heard an offer created through the Keystone Purchasing Network, which helps municipalities bid on projects quickly through job order contracting.

The Keystone Purchasing Network had the Gordian Group in South Carolina offer its services to the authority to build the garage, according to a Gordian Group representative.

The Gordian Group has a construction service called ezIQC, which uses a previously bid-out price book that lists the price of numerous construction tasks.

Prices for projects are determined by pulling the line items needed to complete the job from the book.

The Gordian Group uses local contractors to complete the work. The contractors also are selected by a competitive bid.

The final price of the garage would be determined by multiplying the total line item value of the project by an adjustment factor used by the contractor.

Sunrise Commercial Contracting in Harmony would be the contractor for the parking garage, if the authority decided to use the service.

The Gordian Group also would charge an addition 3 percent fee for the project.

No action was taken on any proposal, but Schmitz said he hopes to be back in Butler on Tuesday to meet with city officials.