10-03-2005 New Downtown Parking Facility at Jefferson/St. Joseph

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New Downtown Parking Facility at Jefferson/St. Joseph Page 1 of 2 � v%• 'Building a 21St Century City " ' rs Stephen J. Luecke, Mayor RELEASE FROM: FOR RELEASE: Community and Economic Development Monday, October 3, 2005 New Downtown Parking Facility at Jefferson/St. Joseph The City of South Bend is moving forward with plans for a new downtown parking facility to replace the former garage at the corner of St. Joseph St. and Jefferson Blvd. Originally, the City had planned to renovate the garage, however, it was determined that the condition of the 40+ year old structure necessitated razing rather than renovation. "When the parking garage was torn down and the need to rebuild was confirmed, the idea of combining private development with public development made sense", said Sharon Kendall, Director of Community & Economic Development. "Responding to the desire for more retail space as well as parking, the City sought to design a creative and innovative project that could meet several needs and mirror other successful downtown investment projects." In addition, the City had also been in discussion with a number of businesses who were interested in a variety of potential new projects. Seeing the potential for retaining or increasing downtown business and recognizing that the St- Jose ph/Jefferson site is a key corner for development, the South Bend Redevelopment Commission initiated the public disposition process required to offer the site for private development. Browning Investments, of Indianapolis, bid on the site and was awarded the opportunity to develop the site subject to a detailed development contract being entered into with the Redevelopment Commission. The development requirements for the site combined the parking structure with retail at the ground level and an office development over the parking structure. "Public investment creates the optimum environment for private development," said Marcia Jones, President of the Redevelopment Commission. "We also see the potential of taking a non-taxable property (parking garage) and turning, at least a portion of it (offices) into one that would generate taxes." As Browning Investments and the staff of the Redevelopment Commission worked on the details of the development agreement and Browning completed the final feasibility studies for the office portion of the project, it became apparent that the project was not economically feasible based on the needs of both parties, including meeting existing parking demands, parking needs for the proposed office, and the current and future space requirements of the office project. The construction costs associated with this unique structure would have required rental rates far above the market rate for class "A" space in downtown South Bend. Michael Browning, owner of Browning Investments said that "we really were excited about doing a project in downtown South Bend and remain enthused about the possibility of still working on a project downtown." The law firm of Baker & Daniels was expected to be the major tenant in the building. Richard L. Hill, Managing Partner of Baker & Daniels South Bend office, indicated he was optimistic that an alternative project could be developed. Hill mentioned that an additional obstacle to proceeding with signing a lease for http://www.ci.south-bend.in.us/Press/Releases 2005/100305 garage.htm 1/13/2006