The Capital City Development Corporation voted Monday to sell one if its parking garages.
The urban renewal agency wants to sell off the garage that sits under the Grove Hotel and Century Link Arena for at least $6.8 million.
“We fell like this is a good time to consider this disposition,” Todd Bunderson with CCDC said.
CCDC purchased the garage in 1998 for $5.2 million from Block 22, LLC which owns the building above it – and has managed it and collected parking revenue in the twenty years since.
The agency says the garage contributes a small amount of overall parking revenue – and it hopes to use money from the sale for a new project. Funds could go toward building a new garage in the 8th Street area as part of a project to revamp the Boise Public Library complex. CCDC says an appraiser set the value at $6.8 million – which is also the amount set aside for the potential new garage.
The agency set a process to pick a potential new owner:
- Impact on current users of the garage
- Proposal’s ability to advance economic vitality in downtown Boise
- Parking Management Plan accommodating adjacent public and private development and the existing lease agreements
- Experience and understanding of the downtown Boise business community
- Experience in operating and owning a parking struck
- Purchase price
- Financial ability
- Ability to close in a timely manner
Only a few entities could satisfy all of these requirements – among them Gardner Co. which operates a garage next door in the Boise Centre West building. Block 22, LLC is also an obvious bidder, and investor JRS Properties is associated with the JR Simplot Co. and owns parking in its new headquarters building and at JUMP.
The garage could sale could happen and be finished by September, 2018.
“I love the idea of disposing this garage since we have fulfilled our mission in building it,” CCDC chair Dana Zuckerman. “I want to make sure we do our job is not harm the hotel or arena – that’s the last thing we want to do in selling this garage.”
Zuckerman also raised listing the garage lower than the appraised rate at $6 million. CCDC staff advised against the idea and noted that starting the bidding at $6.8 million was the right way to structure the disposition.
“The needs are many, and they are coming at us,” Boise Mayor and CCDC commissioner Bieter said. “The proceeds from this can go a long way to getting us where we need to go.”
CCDC board member Ryan Woodings noted that the garage, with inflation, would be worth $8 million based on the $5.2 million paid in 1998.