Hartford, State In Talks Over Purchase Of Morgan Street Garage
By JENNA CARLESSO
March 12, 2013
HARTFORD —— The state is in talks with the city to purchase the Morgan Street garage, officials from both sides have said.
No price has been disclosed. Jared Kupiec, Mayor Pedro Segarra's chief of staff, said the city hopes to wrap up the deal in the coming weeks.
"The goal is to get it resolved sooner rather than later," Kupiec said, declining to discuss specifics because negotiations are ongoing.
The garage, at 155 Morgan St., was built during the 2000-01 fiscal year. The cost of construction was about $30 million, $6.5 million of which was paid for by the state. The state currently owns about 25 percent of the garage, Kupiec said.
City officials mentioned at recent public meetings on the 2013-14 budget that selling the garage could help offset a projected $70 million deficit. The city owes between $18 and $23 million on the facility, Kupiec said. Its debt service this year is about $1.5 million.
Kupiec noted that the garage has brought in the least revenue of the Hartford Parking Authority's three facilities, which also include the Church Street and MAT garages.
This year, the Morgan Street garage is expected to bring in $979,900 and cost $617,560 in upkeep and other expenses, leaving a profit of $362,340, according to city documents. The MAT garage is expected to bring in about $2.1 million and cost close to $900,000, leaving a profit of about $1.2 million, while the Church Street garage is projected to bring in a little more than $2.1 million and cost $660,000, generating a roughly $1.5 million profit.
The Morgan Street garage, which has eight levels and 2,290 parking spaces, brings in money from hourly and monthly parkers and contributions from Capital Community College, whose faculty and students park there. The fair market value is listed as $25.8 million.
State officials could not be reached for comment on the deal Tuesday.
Gov. Dannel P. Malloy announced last week that the state would buy Connecticut River Plaza on Columbus Boulevard and 55 Farmington Ave. in Asylum Hill for $52 million, part of a plan to get out of expensive leases and avoid costly repairs to aging state-owned buildings. As many as 3,300 state employees in nearly 20 locations will be moved over the next two years into the two office buildings.
Connecticut River Plaza is just around the corner from the Morgan Street garage.
Reprinted with permission of the Hartford Courant.
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