The Capital City Development Corp. finally has a deal in hand to sell a parking garage it owns.
It put out a request for proposals asking for bids of at least $6.8 million.
No one bid.
It revised the amount to $5.3 million.
No one bid.
The agency then went a different route and the board of commissioners told staff to see if it could negotiate a direct agreement.
After talking to several parties, it struck a deal with Block 22, LLC — the company that owns the Grove Hotel and CenturyLink Arena that sits above the garage.
$4 million will flow into CCDC coffers for the garage.
“This is a specialized parking garage,” CCDC Project Manager Laura Williams said. “It’s probably going to operate we think more effectively in the private sector. It’s no longer a significant contribution to our (downtown parking) system, it’s only 5% of our gross revenue comes from that garage. Being able to reinvest the money from sales into a new parking facility seems like a good forward step.”
Williams said Block22 will operate the garage much like it is now – with hotel parking, condo parking, 75 spots for monthly parking users – and some public access.
The sale should close at the end of a due diligence phase in February.
“This has been a long and winding road,” Boise Mayor Dave Bieter said. “I think it’s a good idea, and will pay dividends going forward.”
Funds from the sale will go into future parking garage projects CCDC is contemplating.