A proposed downtown parkade could offer the lowest rates in the Edmonton region, the St. Albert and District Chamber of Commerce says.
Mike Howes, chairman of the chamber’s building committee, presented the chamber’s plan for its office and retail complex, including a parkade, to members Wednesday.
The complex is proposed for St. Anne Street across from St. Albert Place where it would occupy parts of the existing surface parking lot. The plan, which has previously been presented to city council, has caused concerns about using tax dollars to help pay for construction and charging for parking.
Howes said the chamber would not charge Edmonton rates of $15 to $20 a day.
“What we would hope, because the chamber is a not-for-profit, is that this would be the lowest paid parking in the Edmonton region and it would stay that way,” he said. “We are also fearful that if some private contractor would come in and open a parking garage, that free market would rule and we wouldn’t have the same option.”
The proposed chamber building would sit across the street from city hall where there is now a surface parking lot. It would have about 50,000 square feet of office and retail space. The parkade would accommodate about 550 cars.
Howes said the chamber would occupy about 5,000 square feet in the building and rent out the rest. It would lease parking spaces to the city and business owners, and likely have a paid-parking system in place.
This would help pay off the mortgage and one day help the chamber make more money. The chamber also hopes to get funding for the building through city, provincial and federal grants, he said.
In a previous interview with the Gazette, Howes estimated the cost of the building project to be around $40 million. The chamber also proposes to lease the land from the city, ideally for $1 a year for 99 years.
Following the presentation, one business owner asked Howes how much public parking will remain available once the chamber leases spaces to business and city employees.
Howes said he doubts the parkade would hit 100 per cent capacity. On evenings and weekends, leased spaces would also remain open for public parking, he said.
He admitted that construction of the building will displace about 200 cars now using the surface parking lot. Construction is expected to take at least two years, from 2016 to 2018. He said the chamber would address the lack of parking during that time in their business case.
“A park and ride would be one option,” he said.
The general membership will be presented with the business plan in the future, he said. For now, the chamber is seeking partners to lease space in the building.
Asked what would happen if these partners defaulted on their payments or moved out of the complex early, he said that consideration will be part of the business plan.
“If we can get five-year commitments and fill the building, I think we can make the 15-year mortgage happen,” he said.
Howes could not be reached for further comment later in the week.
