Jayne Kirkpatrick, Director, Public Affairs

Prepared by: John Boyette, Public Affairs Specialist

 

For more information: City Manager J. Russell Allen, 919-996-3070

 

April 3, 2012

 

Approval Given to Lease Purchase Agreement for Parking Spaces

in Blount Street Deck

 

          The Raleigh City Council voted unanimously today to approve a lease purchase agreement involving 396 parking spaces in the City’s Blount Street Deck. Edison Land LLC, a development company, wants to use the parking spaces to support a planned nearby 320-unit apartment project with ground-level retail space.

 

The lease purchase agreement was approved subject to the upset bid process. The City has a similar lease purchase agreement with Edison Land for 300 additional parking spaces in the Blount Street Deck to support a 239-unit apartment and ground-level retail planned for the deck’s south side. The parking deck is located at 314 S. Blount St. in Downtown Raleigh.

 

The lease purchase agreement approved for the 396 parking spaces covers a 20-year period starting in 2015. Payments would total $10.9 million over the 20 years, or $27,620 per space. At the end of the 20-year agreement, Edison Land would own the 396 parking spaces. At anytime during the lease, Edison can exercise its option to purchase the spaces at a cost equaling the total of the remaining lease payments. The City will retain the right to lease the spaces during daytime hours whenever residents of the apartment project are not using them.

 

Construction of the 320-unit apartment that will be served by the 396 parking spaces is scheduled to begin by Oct. 1, 2013, with completion in March 2015. If construction does not start by Oct. 1, 2013, either the City or Edison Land can terminate the lease purchase agreement.