Scoopz negotiations in 2008 a prelude to 2011 parkade mess

One of the remaining questions about the Lorne Street parkade issue is why the City sold its so-called Scoopz parking lot across the street to hotelier Tom Gaglardi, then neglected to negotiate public parking into the deal.

Documents released Wednesday under the Freedom of Information and Protection of Privacy Act may provide a clue as to why public parking at the Scoopz site wasn’t protected.

After the prospect of a sale to Gaglardi reared its head in the summer of 2008, City CAO Randy Diehl ordered up an appraisal because “Sandman wants to get digging soon.”

He also expressed concern about the prospect of combining public parking and hotel parking on the site. “I think we need to initiate a Traffic/Parkade analysis for the Scoops (sic) lot vs. the optimal location in downtown,” he wrote in a July email to City staffers Dave Freeman and Jeff Putman.

“I am concerned that the addition of 160 to 250 stalls at this location may result in traffic chaos. The Hotel will need to provide its own parking and in the slow season or slow days during the week it will have empty stalls…. So why would we add more to the mix….”

This is interesting in view of the fact the only explanation ever provided by City Hall for the lack of agreement with Gaglardi on inclusion of public parking has been that Gaglardi turned it down.

The Diehl email, however, appears to indicate that combining the two might present traffic issues, and, further, that he believes there are better locations for a public parkade than Lorne Street..

Over the next couple of weeks, emails between City staff and Gaglardi’s lawyer discuss the mundane details of real estate, including survey plans, a soils report and environmental site assessment.

Freeman, the City’s real estate manager, sends a copy to lawyer Frank Quinn of the traffic study done for the aborted waterfront hotel project, which suggests Gaglardi was examining potential traffic issues.

A meeting is held late in July and the parties agree a covenant will stipulate that the property will be used for a hotel only. No mention of public parking.

Freeman is aware of the interest the sale will generate with the media, and writes to Quinn and appraiser Terry Kerslake, “As I fully expect this purchase and sale to be highly scrutinized by the press and public (the other components of this transaction are not as straight forward), once we have discussed your preliminary findings I would prefer that the final report contain ‘a number’ … not a range.

“At the announcement I want the City to be able to say that the selling price will be Fair Market Value as determined by an independent appraiser agreed to by both parties. If we don’t have a definitive value (and a range is supplied) then the next day headline will read ‘City gives up $$$$ on Hotel deal).’”

On Aug. 6, 2008, a press conference is held to announce that Gaglardi will pay the City “fair market value, as determined by a third-party appraisal,” and build a Sandman hotel on the Scoopz lot.

A couple of weeks later, the deal is finalized  — Gaglardi gets the property for $2.25 million, and the City profits by roughly $400,000 over the price it paid three years earlier.