Third Coast In The News

Parking sale idea leads to study by commission Advisory group asked to look for ways to wring more cash from system, Editorial, The Grand Rapids Press, Grand Rapids, Michigan, Apr 25, 2007

GRAND RAPIDS -- City commissioners took a step back from an offer to privatize two-thirds of the city's downtown parking system Tuesday.

Instead, they asked their Automobile Parking Commission to study other ways to get more cash out of the system.

Parking Commission Chairman Jack Hoffman said his group could take six to 12 months to make a recommendation.

Hoffman said the advisory panel probably will take a look at big- picture issues instead of the proposal in which Third Coast Development Partners offered to buy four city parking ramps and 10 parking lots operated by the city.

In a letter to commissioners, Hoffman suggested the city could pocket parking meter fines for its general fund instead of the city's parking fund. The parking system already contributes to police overtime for DeVos Place and Van Andel Arena and helps fund the city's Office of Special Events.

Third Coast offered to buy the parking facilities for $35 million to $45 million, depending on the outcome of a 45-day negotiating period.

City Manager Kurt Kimball told commissioners he was opposed to negotiating with Third Coast. Kimball said he could not justify selling or leasing a system that has been a successful economic development tool for downtown.

"Why would you let someone else tell you when it's time to sell your assets?" Kimball asked. He maintained the developers would have to come up with $44 million to buy the surface lots and pay off the outstanding bonds on the parking ramps.

Second Ward Commissioner Rick Tormala challenged Kimball.

"We don't know if it's a good deal," Tormala said. "We should at least be sitting down with Third Coast and figure out if this is a good deal."

Third Coast Principal David Levitt said he was disappointed by the decision, which came without a vote by the commission.

"We are obviously disappointed that they chose to go that route, but we respect the City Commission and their deliberations," he said.

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