A deal that finalizes the purchase of property needed for a downtown convention center parking garage has been completed, said Jon Marvel, president of the Vigo County Capital Improvement Board.
The CIB will purchase from Terre Haute Realty Corp., a limited liability corporation of the Hulman family, two lots across from Clabber Girl Bake Shop for $275,000, which is the average of two appraisals, Marvel said.
“We agreed to give them 40 parking spaces in the convention center parking garage, which is 20 spots on the first floor and 20 spots on the second floor, as long as Terre Haute Realty Corp. owns the property” that currently houses the bake shop.
Initially, the deal hit a snag, Marvel said, as the owner wanted the 40 parking spots to be permanent and go with any sale of the building at 900 Wabash Avenue that bears the words Hulman & Co. above its front door.
The final deal will allow the parking spaces to be sold with the property, “however the new buyer will pay fair market value to lease those spaces,” Marvel said.
“That will be paid to the CIB. It is a fair deal because if you are buying a building of that size, if it is ever sold, they [Hulman family] want to be able to say it has 40 parking spaces in the garage across the street. But the CIB said those spaces will be leased at fair market value.”
The CIB last month approved a measure to provide $2.4 million upfront to start construction of the downtown convention center. The board approved a measure that extended it approval of a guaranteed maximum price from August until Dec. 19. That delay however, resulted in a higher up-front payment from the initial $240,000 as part of the agreement to get the project started prior to a bond issue.
Garmong Construction Services last month submitted a detailed estimated cost of $2,398,918 for two months of construction and mobilization work, allowing work to start once the properties are acquired.
Marvel said work on the convention center garage can now begin, likely after the Thanksgiving holiday. The lone remaining issue involving a second parking garage north of the Hilton Garden Inn is pending negotiation.