The Phoenix City Council recently approved a plan that calls for the use of bonds and sales tax revenue to fund a new parking garage at Park Central Mall.
The longtime retail center south of Osborn Road between Central and 3rd avenues has more than 2,400 surface parking spaces. The city and developers Plaza Companies and Holualoa Companies want to move those spaces into a garage to help eliminate the heat island and make room for a hotel, apartments and green space.
To build the garage, the council approved forming a community facilities district to issue bonds up to 25 years. The estimated $1.5 million in annual interest would come from parking fees and tax dollars generated by Park Central Mall. When the bonds are paid in full, the city will take full ownership of the garage.
Here’s how much the city will contribute via sales taxes:
- Years 1 -6: 100 percent of the city of Phoenix portion.
- Years 7 -25: 50 percent of the city of Phoenix portion.
If parking fees do not generate the amounts listed below, the developer will make up the shortfall:
- Years 2-5: $720,000 per year.
- Years 6-7: $792,000 per year.
- Years 8-25: $942,000 per year.
