Oct
27

Greenville Council Members Concerned About Garage Financing

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parking_signFinancing the new parking garages at Erwin Penland, the RiverPlace expansion and the garage beside the Aloft Hotel will put a strain on funding future projects, city of Greenville staff told City Council on Monday.

Representatives from the city’s Office of Management and Budget (OMB) presented a financing plan during the City Council work session.

Under the model presented to council, the city would issue $19 million in debt through 20-year bonds. A single buyer will purchase all the bonds from the city and then resell them on the open market. The city would provide a $15 million equity payment, which Budget Administrator Matt Efird compared to a down payment on a house.

The city already set aside $7 million in equity when construction began on the RiverPlace expansion and the garage beside Aloft. The additional $8 million would come from surplus Tax Increment Financing (TIF) district money.

Under the model, debt payments will limit the surplus parking revenue council has for other projects. Last fiscal year, the parking revenue surplus totaled about $1.6 million.

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