In a split vote Thursday evening, Butler City Council ended further negotiations for the proposed $3.75 million sale of the tier parking garage and two parking lots.

Council members voted 3-2 against an updated term sheet from prospective buyer PFS VIII LLC.

Mayor Ben Smith and Councilman Jeff Smith voted in favor of approving the terms and proceeding with negotiations. Councilmen Bob Dandoy, Mike Walter and Kenny Bonus voted against the motion.

In January, council authorized solicitor Tom Breth to negotiate a sales agreement and an agreement for parking enforcement after the company submitted a proposal to buy the garage and the two lots adjacent to the City Building on North Street. The company was the only bidder.

Breth reviewed the negotiated terms before council voted.

The terms would have required PFS to install parking payment kiosks throughout the city, he said.

The city would have enforced parking at all garages and lots, including those included in the purchase, and modified the parking ordinance to reflect an increase in parking violation fines to $35, Breth said.

A fine would increase to $65 if not paid after 30 days and to $95 if not paid after 90 days, but would decrease to $20 if paid within 72 hours of issuance or $25 if paid within 10 days, he said.

Current fines are $10 for overtime parking at a meter and $20 for parking over two hours on Main Street.

A management agreement between the city and company, which was being negotiated, would have been part of the sales agreement.

“This is simply a financial decision,” Jeff Smith said.

He estimated the garage and lots would generate about $400,000 in revenue for the city over the next 10 years, but $3.85 million in revenue would be generated through a contract with PFS.

The cost of repairing the garage might have resulted in council raising the parking violation fines, he said.

He also said the county offered to buy the garage from the city for $2.5 million.

Dandoy, who along with Walter voted against negotiating sale terms in January, said he might have voted to accept the proposed terms if the sale only included the garage. He called $35 fines outrageous, but not a deal-breaker.

Abdicating authority to set fines and possibly parking rates is a disservice to taxpayers, Dandoy said.

The garage needs repairs, but it is not in danger of falling down, he said.

“I think it's penny wise and dollar foolish,” Dandoy said.

He also said many business leaders in the community were “vehemently” opposed to the sale.

Bonus said he voted to proceed with negotiations in January to find out what the company was offering.

He also said he might have supported accepting the proposed terms if the sale only included the garage.

Business owners and community members “pleaded with me” to vote against the sale, Bonus said.

Ben Smith and Jeff Smith said Thursday's vote puts an end to the proposed sale.

In January, council voted 3-2 against a proposal from Butts Ticket to install 17 parking kiosks at various locations for $104,975. Bonus, Ben Smith and Jeff Smith voted against the motion. Dandoy and Walter voted in favor.

In December 2019, council voted 3-2 against selling all of the city's parking assets to the same company for $10 million and a 12% share of gross parking revenue. Walter, Bonus and Fred Reese, who was serving an appointed term on council, voted against the motion. Jeff Smith and Ben Smith voted in favor.