South Bethlehem parking garage seen as key to East Third Street development is back on track
Construction on Bethlehem’s high-profile Polk Street parking deck was slated to start in late 2020, but then the coronavirus pandemic struck in March.
05/12/2021
Construction on Bethlehem’s high-profile Polk Street parking deck was slated to start in late 2020, but then the coronavirus pandemic struck in March.
First the pandemic upended the Bethlehem Parking Authority’s finances, and then the 777-space Walnut Street parking garage needed costly emergency repairs, compounding the financial strain.
The proposed garage’s extended limbo finally ended Wednesday afternoon when the Bethlehem Parking Authority board voted to revive plans for a 593-space deck that was estimated in 2020 to cost $19.4 million.
Bethlehem Mayor Bob Donchez sees the garage as a crucial component of the ongoing resurgence of East Third Street and notes demand is only growing. Developer Lou Pektor is pitching a mixed-use apartment building across the street. Peron Development’s ready to start the environmental cleanup of the Bethlehem Steel General Office building east annex.
“That area needs a garage for the development that is happening,” said Lynn Collins Cunningham, a parking authority board member. “It is vital that we have this garage.”
Authority attorney Jim Broughal noted the agency risks losing $2.5 million in state Redevelopment Assistance Capital Program (RACP) funding if it delays the project. Back in August, the board authorized the issuances of up to a $25 million private bank loan to fund the project.
The authority already selected Peron Development and J.G. Petrucci Co. to construct a five-story building to front the parking garage. It was to include 32 luxury apartments on the top floors and a Factory LLC retail store on the first floor.
Bethlehem Parking Authority Executive Director Steven Fernstrom emphasized the importance of securing lease agreements with Northampton Community College, Lehigh Valley Charter High School for the Arts and other interested users. Parking demand is even higher than it was pre-pandemic, Donchez said.
The viability of Polk Street hinged on the future of the 45-year-old Walnut Street parking deck. The garage is rapidly deteriorating and consultant Desman Design Management advised it needed $800,000 in emergency repairs to remain open. The authority in March opted to get a second opinion and hired THA Consultants to study the condition of Walnut Street and issue an emergency repair plan, something Desman was already undertaking.
The authority board voted unanimously to go with THA’s recommended $1.5 million “life support” plan for Walnut Street, which extends the life of the garage roughly five years by investing just enough to keep it safely open. This is significantly cheaper than the $12.6 million in repairs Desman recommended over the next five years. Keeping Walnut Street open another 20 years would cost $18.1 million, THA estimates.
Given the garage’s condition and the site’s redevelopment opportunities, the five-year repair plan is the right choice, said Kevin Carrigan, of THA. He likened it to Easton’s approach — THA also works with that Lehigh Valley city — to the Pine Street garage, which will come down when a new North Fourth Street garage is finished.
Bethlehem’s Polk Street plan buys time to study how best to deal with Walnut Street. City and authority officials are leaning towards replacing the aging garage because it prevents a rare opportunity to fully redesign a core block in the historic Center City. It is estimated that a new garage could be built on 60% of the current footprint, which spans a city block.
Donchez calls the opportunity a “game changer” that, in concert with the planned redevelopment of the Boyd Theatre into a 14-story luxury apartment, could really help extend the Historic Downtown.
The authority has been weighing repairing or razing the aging garage for some time, but Walnut’s rapidly deteriorating condition brought it to the forefront ahead of Polk Street.
When the authority terminated its contract, Desman was in the midst of a study analyzing the cost, impact and financial feasibility of tearing down Walnut and replacing it. In September 2020, Desman told the authority that it could cost $12 million to $14 million over the next 15 years to maintain the garage that was built in 1976.
Credit: Sara K. Satullo may be reached at ssatullo@lehighvalleylive.com. lehighvalleylive.com Updated Apr 29, 2021; Posted Apr 28, 2021
