A long-discussed public parking deck serving the west end of downtown is poised to move one step closer to reality.

City officials are nearing the deadline to exercise a $1.3 million purchase option on a vacant piece of property at 145 West Front Street. Commissioners Tuesday will consider authorizing a one-week extension on the option so staff can finalize funding plans, with the goal of pulling the trigger on the deal June 6.

The purchase would allow the city to eventually build a public parking deck containing at least 400 spaces on the site, which sits at the southeast intersection of Front and Pine streets. Funds to pay for the property are available in the city’s parking system fund, but a complex purchase agreement with the owner has delayed the deal.

Great Lakes Central Properties (formerly Federated Properties) owns both the property at 145 West Front Street and the large empty lot across the street next to J&S Hamburg at 124 West Front Street. The latter parcel is targeted for a five-story mixed-use development called 200 River Place. GLCP offered to sell the city the parking deck property below market rate for $1.3 million – the same price it bought the land for 10 years ago – in exchange for securing $1.2 million in brownfield and parking funding for its development across the street.

“Because of the environmental clean-up costs (at 200 River Place), the developer wanted to ensure there was reimbursement in place for that before he released the other property for sale,” explains Grand Traverse County Deputy Director of Planning & Development Jean Derenzy, who is helping negotiate the deal.

The city’s parking system fund and brownfield revolving loan fund were set to cover the $1.2 million – until officials discovered parking dollars can’t be used toward private development. Now Derenzy is working with the Michigan Department of Environmental Quality (DEQ) to guarantee a loan from that agency to GLCP for environmental clean-up so the deal can proceed.

“I think the DEQ has always worked with us very well and is willing to work with us on this as well,” says Derenzy. Should city commissioners trigger the property purchase option June 6, staff will have 30 days to finalize terms with GLCP and the DEQ in order to complete the transaction.

“It’s a better deal for the public, because it’s the same property purchase amount and fewer of our local dollars going into the (200 River Place) development,” says Derenzy.

Gaining control of the Front Street property is the first step in the city eventually building a new downtown garage. A construction timeline for a deck hasn’t been set, but it will likely take several years to get underway, according to Traverse City Manager Marty Colburn. That’s because the city needs to wait for development around the site – including Hotel Indigo, 200 River Place and the planned Grandview Market in the Warehouse District – to mature and generate enough taxes in the city’s brownfield and TIF 97 funds to pay for the project.

A deck will materialize “depending on how fast that development happens,” says Derenzy. “But securing the property gives assurance to private investors that we’re doing our due diligence (to address parking).”

While it could be some time before downtown parkers see a new deck, the property purchase would still offer short-term relief: Once the transaction is complete, the city can start using the lot for surface parking until a deck can be built, according to Derenzy.

Traverse City commissioners will meet at 7pm Tuesday to approve extending the purchase option on 145 West Front Street. Commissioners will vote on actually exercising the option June 6.