MINUTES
Special Joint Meeting of the City Council, the Redevelopment Authority of the City of Butler, the Parking Authority and the
J.S. Capitol Group held at the Grand Ballroom,
Cornerstone Commons,
City of Butler, Pennsylvania
October 28, 2014
Mayor Donaldson called this special meeting to order at 7:00 PM. Mayor Donaldson and Councilwomen Readie and Kline, Councilmen Schontz and May attended the meeting. Tim Morgus, Jim Coulter, members of the RACB, and members of Parking Authority as well as Paul Dunn and Jeff Schmitz from J. S. Capitol Group also attended.
The purpose of this special meeting was to discuss the options concerning building a parking garage.
Mayor Donaldson opened the discussion stating that there are three options. Option 1 is to build a 225 space parking garage. Option 2 is to sell all the property involved to the developers for private use. Option 3 is to abandon the Center City Project altogether.
Tim Morgus, from Maher Duessel presented estimated options for the bonds needed to build the garage. Option 1 was a break even scenario and Option 2 used a cost per parking space from the Cost Median Construction Guide as an estimate for a 225 space garage. The original developer contribution used in the handout needed adjusted. A summary of Mr. Morgus’ estimate is attached to these minutes.
Jim Coulter, the City Solicitor, explained that the “Refunding proceeds” listed on the chart are the bonds that are owed by the Parking Authority less $500,000 that will be paid by the Parking Authority to pay off their existing debt.
There was discussion concerning what a 225 space parking garage would actually cost, including design costs and other costs not currently known. The developers suggest the City begin with the total amount of bonds to be purchased and then design the garage using said bonds, to keep costs controlled.
Mayor Donaldson requests that construction for the hotel begin prior to the garage or that the garage and the hotel be constructed simultaneously.
Discussion was opened to the public. Chelynne Curzi, the Main Street Manager, had only one comment – “proceed, please”. Mark Krenitsky asked why the RACB couldn’t take their 40% ownership of the hotel and use that to help pay the construction costs for the parking garage. Another person asked about the TIF that is being used for the Penn Theater.
Mayor Donaldson made the motion to request that PNC Capital Markets, as the City’s investment banker, update the City’s credit rating, at an approximate cost of $7,500 to $10,000, to obtain bonds for the purpose of building the parking garage for the Center City Project. Second by CW Kline. All voted aye.
Mayor Donaldson thanked Joe Gray for graciously permitting the special joint meeting to be held in the Grand Ballroom.
Mayor Donaldson adjourned the meeting at 7:40 PM.
Butler Parking Authority Tier Garage
Prepared by Tim Morgus Butler Parking Authority Tier Garage
