Third Coast In The News

Another potential parking buyer steps up, Ellis lot operator wants to get in on the bidding if city sells propertyEditorial, The Grand Rapids Press, Grand Rapids, Michigan, March 28, 2007

GRAND RAPIDS -- If the city intends to sell two-thirds of its downtown parking spots, there's bound to be more than one interested bidder.

Michael Ellis, president of Ellis Parking Co., said Tuesday he would be interested in bidding if the city decides to negotiate a price with another developer to buy four of the city's downtown parking ramps and 10 parking lots.

"If they decide to dispose of their properties, we will gladly be one of the bidders, and I'm sure there are many others who would," said Ellis, whose company owns lots that include between 4,000 and 5,000 privately owned downtown parking spots.

Third Coast Development Partners told commissioners they can raise between $35 million to $40 million for the city if they buy its facilities. Their offer also would place the facilities on the tax rolls, generating up to $1 million a year, they said.

Developers Dave Levitt and Bradley Rosely said they also want to take over and expand DASH, the city's downtown shuttle service. They promised not to raise parking prices above the rate of inflation, and said they won't develop the parking lots without replacing the lost spaces.

Earlier Tuesday, City Manager Kurt Kimball told city commissioners it's going to take time and involve a lot of interested parties if the city wants to sell some of its downtown parking facilities.

Saying he had just learned of the proposal Monday, Kimball asked for two weeks to come up with a process to evaluate the plan pitched by city commissioners Rick Tormala and James White.

"This proposition needs to be thoroughly vetted," Kimball said. "There are a variety of stake-holders here, more than meets the eye."

So far, Third Coast's offer is no more formal than a nine-page PowerPoint presentation shown to city commissioners Tuesday.

The developers asked for a 45-day exclusive negotiating period to establish a fair price for the facilities, which include about 4,700 of downtown's 6,700 publicly-owned parking spaces.

If others get involved in bidding, Levitt said they would ask the city to reimburse them for their costs of developing a proposal.

Forty-five days may not be enough time, Kimball said.

The four ramps the developers want to buy are owned by the Grand Rapids Building Authority, a three-member board which Kimball leads. Kimball, whose term expires in 2012, called a joint Thursday meeting of the authority, the DDA and the parking commission to discuss the proposal.

Kimball said most of the surface parking lots the developers want to buy are owned by the Downtown Development Authority, which promotes economic development in the downtown area.

The city's Automobile Parking Commission is a citizens board which advises the City Commission on public parking rates and issues.

Jay Fowler, executive director of the Downtown Development Authority, said there may be restrictions on some of the land the developers want to buy.

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