Even though it was not an agenda item, Mayor Robert Donchez invited the Bethlehem Parking Authority (BPA) to brief the Bethlehem City Council June 3 on its plans to build a parking garage on a lot near the intersection of East Third and Polk streets.

“This is a project that has been a priority of mine for several years,” said Donchez in preamble to asking BPA Director Livingston to take the floor. “It is critical to support the parking needs of Northampton Community College and other business in the eastern corridor on [East] Third Street.”

“I think it is important for the economic development of the eastern corridor,” said Donchez. “Out of 470 [parking spaces] they have roughly 370 commitments for leases.”

He said he wants to wean the City off of contributions from BPA when the TIF (Tax Incremental Financing) ends. “I do want to fulfill that commitment.”

Helping establish the BPA as a self-sufficient financial entity able to finance its own capital improvements is also a goal of PFM officer Scott Shearer.

“We can secure a [bank] financing package under very good terms and conditions for the Authority without having to put the City guarantee and the taxpayer’s pledge behind the debt,” said Shearer.

Donchez said the BPA had the responsibility to research all possible ways to finance the project and to find the method that was in the best interests of the taxpayer.

Parking Authority Director Kevin Livingston said he had explored both public and private financing for the Polk Street garage.

Construction on the Polk Street garage could start by the end of 2019, according to Livingston.

He said, “The garage is currently planned to be a 470-space garage with a 30-space parking lot. In the bids for construction, we intend to add a bid alternate to build the garage 91 spaces larger, or an additional one and half floors. The bid alternate will be executed if the pricing for the garage comes in less than anticipated, or the BPA realizes new commitments and/or revenue prior to the start of construction.”

Livingston also said plans allow for “an opportunity for a horizontal expansion of approximately 159 spaces.”

“This would include building additional garage spaces over the parking lot,” said Livingston. “The maximum size of the garage is 750 [parking] spaces.”

Livingston brought the team of consultants and public finance experts who have assisted the BPA in determining the finance methods to pay for the new construction.

“The BPA explored both a public bond and private financing of the Polk Street Garage,” said Livingston. “PFM, BPA’s financial adviser, released a request for proposal to privately finance the garage. I previously sent council the Polk Street Garage pro forma outlining the financials. The bank loan does not require a fine increase or a city guarantee of the debt.”

Livingston said BPA paid $2.1 million for the land for the proposed garage from Sand’s Casino in 2019.

“It is the intention of the BPA to close on the private bank loan in July and hope to start construction in December 2019 with an anticipated completion December 2020,” said Livingston. “The BPA also plans to send the official request to council in the summer of 2019 to consider a fine increase to improve the parking system.”

Bruce Haines objected to the plan to build a parking garage on Polk Street outside “the central business district” while tearing down and replacing the downtown Walnut Street garage with 280 fewer parking spaces.

He said the Polk Street parking garage would be outside the central business district and would mainly serve the Lehigh Valley Charter HS for the Arts and Northampton Community College.

He said that the fact that the building is 50 years old is no reason to tear down the Walnut Street parking garage.

In other business, Peter Hepler got a citation from President Adam Waldron recognizing Hepler’s retirement after 42 years with the Department of Public Works’ waste water treatment section.

Council approved 5-2 a resolution to amend the capital budget to allow the City administration to put money toward the rebuilding of Memorial Pool on Illick’s Mill Road.

Councilwomen Paige Van Wirt and Olga Negron voted against resolutions to authorize contracts for other management services, plumbing and electrical service for the pool.