The Fayetteville City Council on Monday night is scheduled to vote on an amendment to a contract the city entered into with a company that is handling the Hay Street Parking Garage project.
The amendment states that the city is not required to pay Hay Street Development Pad LLC out of Durham sales taxes for the garage construction project, which is being built next to the Prince Charles Hotel and in front of the stadium. The council will vote on the issue at its 7 p.m. meeting in the council chambers.
“When the city builds something, it doesn’t pay sales tax,” said Kristoff Bauer, assistant city manager. “And the agreement was just unclear about that. This just clarifies it. When we build something, we don’t pay sales tax. We’re not paying sales tax on the stadium. We’re not paying any sales tax on a dam we are building. We pay sales tax and state pays us back, but we don’t account for it. It is something we don’t have to actually end up paying.”
The amendment will not change the price tag on the garage, Bauer said.
The contract the city has with Hay Street Development Pad LLC calls for paying the company $14.4 million for the land, and it is responsible for hiring a general contractor to build the garage. That amount does not include design, engineering, environmental and permitting costs.
Plans call for the 486-space garage occasionally being opened up as paid parking for special events, but officials have said that on many days, particularly when there are weekday baseball games, it will be a challenge for game patrons to find a space there.
The parking garage would accommodate the following overlapping uses:
• 90 spaces for Prince Charles residents.
• 30 spaces for Woodpecker baseball team staff, players and coaches.
• 120 spaces for people staying in the new downtown hotel.
• Five spaces for Amtrak train customers.
• 300 spaces for retail and office uses.
Others could use it, as well, if they can find a space.
A charge of $1 per hour is proposed when people park in the garage for non-events, with a $10 daily maximum. People who park overnight, such as Amtrak customers, would pay $12 to $15 to park in the garage. The city is contemplating making the first hour free so people pulling up to buy train tickets could get in and out without having to pay a parking fee.
Hay Street Development Pad is a limited liability company consisting of the same group of investors who are renovating the Prince Charles Hotel and developing rental units.
“It is one of our companies,” Prince Charles Hotel Project manager Jordan Jones said. He said the company is turning over the garage to the city once it is complete.
“The city will be owning the parking garage at the end of the day,” he said. “They should not be paying sales taxes on the concrete we are buying. Our team is designing and building the garage and the city is basically paying for it as they go. The reimbursement of the funds will be going back to pay for some additional costs of the garage.”
Jones said Saturday that the garage project is about 45 days behind schedule because of rain delays. He said it is expected to open in late May. The Woodpeckers home opener is scheduled for April 18.
But the garage is not a critical component of the stadium parking, city officials have said.
“The purpose of that garage is to park the private development components, the gathering of the Prince Charles, the Hyatt Place Hotel and the stadium-view office building,” Jones said.
Staff writer John Henderson can be reached at firstname.lastname@example.org or 910-486-3596.