The city’s parking authority would help the city with engineering costs for the proposed parking garage downtown should plans for the neighboring hotel fall through.

The city requested that the authority cover up to $50,000 in engineering expenses should the Centre City Project not continue.

J.S. Capitol Construction is set to build a 70-room Marriott Springhill Suites hotel next to the proposed garage, which would be near the corner of South McKean and East Cunningham streets.

“The city asked the parking authority that in the event the deal falls through and there would be no hotel, that the parking authority would cover the cost of the engineering for the garage because the city doesn’t have that money in its budget,” said Jeff Smith, who is the city and parking authority treasurer.

J.S. Capitol was approved last year for financing for the hotel through NexTier Bank. The city redevelopment authority will own a portion of the hotel.

Mayor Tom Donaldson hopes that both the hotel and garage will break ground in April. Donaldson said he wants both projects to go up at about the same time so the city needs to begin designing its 225-space parking garage.

City council expects to pay for the estimated $4.4 million garage through a PNC Bank bond issue. The city would take over the parking authority’s current debt and add it into the bond, which would total about $5.8 million.

The parking authority also will pay $500,000 up front for a portion of its current debt.

Smith said the city considers it unlikely that the hotel deal would fall through.

“The city requested it just in case something were to happen,” he said.

Donaldson said the city wouldn’t have the money to pay for the engineering if something stopped the project.

“They have money, we don’t,” the mayor said of the authority.

The parking authority approved the motion on the condition that the city would still refinance the parking authority’s debt in a different bond issue should the Centre City project fall through.

Smith said the authority has an about $800,000 debt service payment due at the end of the year. Refinancing the bonds would lower that figure.

City council last week finalized an agreement to have J.S. Capitol guarantee to contribute more than $100,000 per year for parking spaces in the proposed parking garage.

The developer will pay $5.50 per space for at least 50 spaces every day. If the hotel has more than 50 guests in a day, the developer would pay for the additional parking used.

The hotel and parking garage are part of the Centre City project, which includes the finished Rite Aid Pharmacy on South Main Street, which J.S. Capitol also developed.