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"What it does is reduce the future expenses of what the city would have to pay," the mayor said.
The Centre Square parkade lease was up for renewal after an agreement was signed in 1995, as a result of the financial restructuring of the complex.
This past spring, CPL proposed the city either terminate the agreement or alternatively, purchase the three existing parkade units from the company.
The parkade provides 121 underground parking stalls, 23 underground storage stalls and 157 above ground energized parking stalls.
The committee noted that the net present value of CPL's parkade is about $110,000.
The committee noted that while during the course of the lease a minimal amount of money was used for maintaining the parkade. Cleaning equipment, painting the underground portion and replacing exterior stucco were upcoming priorities and costs were expected to reach $146,000.
If the city was to own the parkade units, it would have to assume that cost.
Also, vandalism, loitering, vagrants and underground water and drainage were noted to be continuing problems at the location.
As heating and electricity costs increased over the last three years, a conclusion was reached that the parkade would undoubtedly have a negative financial impact on the city's coffers.
Revenue-wise, it was also noted there was little ability to increase rates and occupancy of the parkade.
"Once we've cancelled the offer to purchase, the only holding the city will retain in that building is the library," says Van Tighem.
Metered parking will continue, he adds.
Van Tighem says this could be part of the long-term strategy of council to "try to convert the city to public transit."