The approval of the Letter of Intent (“LOI”) and Resolution 2023-2308 with authorize the City Manager to execute all documents necessary to acquire the existing parking garage (“North Parking Garage”) located as GSQ under such terms and conditions as outlined in the Letter of Intent.

ADOPT RESOLUTION NO. 2023-2308 APPROVING THE EXECUTION OF A LETTER OF INTENT TO PURCHASE THE NORTH PARKING GARAGE AND PROVIDING AUTHORIZATION AND DIRECTION FOR THE EXECUTION OF THE FIRST AMENDED AND RESTATED PARKING RIGHTS AGREEMENT AND THE RELATED PURCHASE AND SALE AGREEMENT; AND PROVIDING AN EFFECTIVE DATE AND AUTHORIZING REQUIRED BUDGET AMENDMENTS. (Roric Massey, City Attorney)
 

Under the terms of the proposed LOI, the City will purchase the existing North Parking Garage at GSQ for $11,955,000. The ongoing maintenance of the garage will continue through the outside vendor, with costs allocated on a pro-rata share between the City and Globe. Initial estimates for the annual operations costs for the parking garage ranged from approximately $34,000 to $68,000 depending on the final staffing levels selected for the garage.  Under the terms of the original Parking Rights Agreement, the City would be responsible to pay for half of those costs.

A budget amendment in the amount of $12,500,000 will be made in FY2023 utilizing available general fund balance to fund this acquisition and all related costs.  With this action proposed FY2024 funding for this project will be removed from the tentative budget to be presented to council on May 22, 2024. 

The City previously partnered with the Globe Corporation for the construction and operation of the North Parking Garage at GSQ to provide public and private parking in support of the GEN 1 office building, and for public parking in support of the City Hall, Library and for the Civic Square public park. The City previously invested $5 million toward the original construction costs and received permanent easements for public parking in the privately owned structure.   

Globe Corporation will soon be moving forward in the construction of a second privately owned parking garage on the GSQ site, and future private parking needs will utilize the new garage. The City was anticipating the construction of a new parking structure to support public parking needs on the site, however, opportunities have arisen in the private construction market that will allow Globe to construct a new garage more economically than the City could at this time, thus the parties have agreed that the City will instead acquire the existing North Garage, in continued support of the City Hall and to support parking needs at the heavily programmed Civic Square Park. The City and Globe are proposing to transfer the North Parking Garage to City ownership through these agreements. The City will buy out Globe’s investment in the North Parking Garage, while Globe will retain an easement to utilize 362 spaces of the existing 912 parking spaces in the North Parking Garage and options for future purchase or lease options of additional parking spaces if needed by Globe. This allocation recognizes the appreciation in value of the North Parking Garage since the time of construction, as well as additional costs the City would have incurred in the construction of additional public parking needed to support the future development of the GSQ site.  The 362 spaces remain open for general public parking on nights and weekends.

The approval of the LOI and Resolution 2023-2308 will provide city staff the authority to finalize necessary legal documents and to execute a future Purchase Agreement and Revised Parking Rights Agreement consistent with the terms of the LOI. The LOI generally provides for the purchase price of $11,955,000, due diligence periods, and that Globe will retain a permanent parking easement in 362 parking spaces, as well as options to purchase or lease additional spaces if needed in the future.
 
The proposed acquisition of the North Parking Garage will provide ample public parking for the City Hall, Georgia T. Lord Library, and the Civic Square Park and for the numerous public events held at the site.