Sewickley Council Moves Forward on Property Purchase for Parking

Sewickley is steps closer to purchasing land in the heart of the business district in order to bring additional parking in town.

After approving an agreement last month to buy 418 Walnut St., council on Monday approved the transfer of $910,000 from its reserve funds to pay for the property.

Sewickley Manager Kevin Flannery said the reserve funds provide a bridge loan that will save the borough about $17,000 to $25,000 in fees typically associated with borrowing and formal state Department of Community and Economic Development approvals.

The bridge loan comes with the understanding that council will borrow permanently in September and reimburse the money back to the borough.

The 21,000-square-foot land is located off Walnut Street where the old Ascot Motors used to be and owned by One Thorn Street LLC. 

Officials say owning the site opens up an opportunity for the borough to add ample parking, potentially with a 297-space parking garage development visible from Walnut and Green streets.

Council also authorized Flannery and Solicitor Richard Tucker to seek bank-financing proposals not to exceed $8 million, the total estimated cost of the land and construction and maintenance of a parking garage, among other items.

"This doesn't bind you to go out and build a garage," Tucker said. "It doesn't even bind you to buy the property, quite frankly." 

Council plans to review and formalize a decision on the project in August, before  finalizing bond financing in September.  

If council decides to proceed with a parking garage, officials estimate the entire project would cost just under $8 million, which includes $500,000 to relocate Hoey’s Run, a creek that runs beneath the property. 

Flannery said the project would not be paid for using taxes from Sewickley residents, only funds generated from parking fees. 

"We do not want the taxpayers to be burdened," he said. 

A proposed 30,000-square foot office and retail space is set to be built soon along Thorn and Walnut streets. But officials say future business development in town will come to a stand-still if a viable parking plan isn't put in place. 

Council President Robert Hague said in his 20 years, parking has consistently been a problem in town. He said the Walnut property provides a long-term solution that not only addresses the present, but also future needs.

"The people who essentially are going to be paying for it...are the people who are using it," Hague said. "I think that's a reasonable way to do this."

Proposed parking garage

Council is looking at an option to construct a garage with 297 spaces, two elevators and a brick façade at $5.988 million. Additional costs would include $350,000 for new parking machines—similar to the machines in downtown Pittsburgh—along with a mobile app.

Revenue

According to borough officials, a parking garage would essentially pay for itself through annual parking revenues.  

• The $7.888 million debt payment could be financed at 20 years, or $575,000 annually, or for 30 years at $483,000 annually. 

• Of the 297 parking spaces, the garage could include 120 spaces to be leased at $100 a month, bringing in $144,000 annually. 

• The other 177 spaces, if used a minimum of four hours per day over the course of 229 days (not including Saturdays and Sundays) would equal $162,132 in revenue. 

• Factoring in $414,032 of metered space revenue brings in $720,164. If council chooses to add $2 all-day parking on Saturdays and for special events, revenues boost to $792,068.