12/05/2006

City will negotiate with two developers

By Vanessa McCray

vmccray@record-eagle.com

TRAVERSE CITY — City commissioners want to pursue public parking opportunities with two West Front Street developers.

Monday, commissioners authorized city manager Richard Lewis to discuss with developer Gerald Snowden an option for land at 305 West Front St. There, the city could build its own free-standing deck. Snowden plans a mixed-use development for the site and said a 450-space garage could be built for $8 million.

"I'm not here to sell you folks on anything,” he said.

But Snowden said the city could consider a deal with him for property and build a deck when the time is "right” for the city. Commissioners peppered Snowden with questions about specifics, but Snowden said he was at the meeting primarily to gauge their interest. His consultant called their numbers "preliminary.”

Commissioners also asked Lewis to enter negotiations with developer Federated Properties and the Grand Traverse County Brownfield Redevelopment Authority for the public lease and eventual city ownership of 211 parking spots inside a mixed-use project at 145 West Front St. Federated proposed the revamped plan after city voters in August defeated a city bond of up to $16 million to pay for public parking in the project. The developer would pay up-front for the cost of construction and be paid back for the public parking spaces using $5.49 million in state brownfield funds.

"We researched various mechanisms for funding that would not require the local tax capture,” said Federated's Michael Uzelac.

The city would maintain and operate the spots throughout the lease and own the spaces at the lease's end. Commissioner Deni Scrudato, the lone commissioner to oppose the city bond proposal, continued to express skepticism about the Federated project. She raised questions ranging from the city's liability, maintenance requirements, the deck's "life expectancy,” and use of the $5.49 million in state incentives despite the need for little contamination cleanup on the site.

"It still appears to just be a misappropriation of this tax money,” Scrudato said.

Uzelac responded that the costs are "eligible expenses” that the state covers and encourages.

Approving either or both of the parking proposals will require various city approvals, officials said. Lewis said he has no timeline in mind as he begins the discussions with the developers.