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WILKES-BARRE — One of the city properties up for sale to raise revenues needed to balance Mayor Tony George’s proposed $50.4 million budget for next year has an interested buyer.
The Wilkes-Barre Parking Authority Tuesday submitted a letter of intent to the city to purchase the Park & Lock East parkade for $1.55 million.
The authority’s five-member board approved the letter at its monthly meeting and offered to pay the appraised value for the parking garage, below the $2 million bid from a private entity. That deal fell through for lack of support by city council that did not want to sell an asset that made money.
The latest offer might be more acceptable not only because it fills a revenue hole in budget that does not raise property taxes, but also keeps the parking garage out of private hands, noted Tom Torbik, executive director of the Authority.
“For all intents and purposes, it remains a city asset,” Torbik said.
Torbik pointed out that Desman Design Management, the Chicago-based consultant hired to study whether the parking assets could be put up for sale or a long-term lease, didn’t think it was in the best interests of the city or Authority to sell the parkade as a standalone property and take away its 282 spots.
In its June 22 report, Desman said the assets “would not generate significant value” to attract an outside investor for the long term.
However, Desman made a number of recommendations to improve the parking system in the short term that included taking a closer look at the financial impact on the city and Authority that the proposed sale of the parkade would have, “as well as the impacts a sale would have on the operations of the remaining public parking assets and the city’s ability to encourage additional downtown development in the future.”
The letter of intent spelled out the Authority’s offer and set a three-month time limit after the signing for both sides to negotiate an agreement of sale that would close in 2019. It also stated that during the negotiation period the city would take the parkade off the market.
While the letter of intent is in play, the Authority wants the city to shut down the parking lot operating on the site of the former Hotel Sterling. The Authority claims the lot is illegal and taking away approximately 220 customers who pay $60 a month, $10 less than the cost to park in one of the downtown garages.
The owner of the lot, H&N Investments LLC is making a third appearance before the city’s Zoning Hearing Board Wednesday, this time seeking a temporary use variance to operate the unpaved lot for 18 months while preparations are underway for a $35 million mixed-use project on the site.
Council meeting work session
The Wilkes-Barre City Council held a work session at 6 p.m. on Tuesday.
The resolution proposed for Thursday’s meeting include:
• Authorizing the proper city officials to make application in the amount of $200,000 for an Early Intervention Program (EIP) Grant Phase III. The city has a 20 percent match on the grant according to City Administrator Ted Wampole.
• The council will vote on a reappointment to the traffic committee.
• The council will also vote on changing the name of Charles Street Park in South Wilkes-Barre to Dr. George P. Moses Memorial Park.