Seattle mulling plans to sell money-losing parking garage
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SEATTLE -- A city-owned parking garage in downtown Seattle is bleeding money, and it could soon be sold for a loss.
Financial irregularities are also coming to light at the Pacific Place garage, and Seattle police are looking at whether someone's been skimming the till.
While repairmen fix a broken gate that lets shoppers into the Pacific Place garage, members of the Seattle City Council are trying to fix the garage's financial problems.
Pacific Place helped establish a downtown retail core that adds sales tax revenue to city coffers, but the parking operation has been losing money for years, despite the scarcity of downtown parking.
A city finance team is advocating selling the property, even if that means losing money on the deal.
"The deal, overall I think, is very favorable to the city," said Fred Podesta of the Finances and Administrative Services Department. "There's a big upside in tax revenue. There's a downside on the operations, so that's the question. Do we want to keep the operation?"
Council members also learned about irregularities discovered in the number of monthly parking passes issued and how some fees never made it to city coffers.
"It's easy to see where it could be theft, but it's not something we can prove yet," Podesta said.
The Problem Solvers did their own analysis of potential losses to taxpayers and found that proceeds from 100 parking passes -- at $285 per month -- never made it to the city treasury.
Losses could total more than $340,000 if the discrepancy has gone on since the last audit, which was roughly a year ago.
Seattle police are now investigating the issue.
"It reflects badly in that there's now been a series of irregularities," said Councilman Tim Burgess.
Councilman Nick Licata originally voted against the garage because of concessions to business, but he concedes that it does have its benefits.
"At that time I thought it was a bad deal," Licata said. "Today, we're losing money on it. It still looks like a bad deal. The counter argument is that we helped revitalize downtown."
The city has an offer of $55 million to sell the garage to the company that already operates the mall. The Seattle Finance Committee will look over the deal before sending it to the full council.
Financial irregularities are also coming to light at the Pacific Place garage, and Seattle police are looking at whether someone's been skimming the till.
While repairmen fix a broken gate that lets shoppers into the Pacific Place garage, members of the Seattle City Council are trying to fix the garage's financial problems.
Pacific Place helped establish a downtown retail core that adds sales tax revenue to city coffers, but the parking operation has been losing money for years, despite the scarcity of downtown parking.
A city finance team is advocating selling the property, even if that means losing money on the deal.
"The deal, overall I think, is very favorable to the city," said Fred Podesta of the Finances and Administrative Services Department. "There's a big upside in tax revenue. There's a downside on the operations, so that's the question. Do we want to keep the operation?"
Council members also learned about irregularities discovered in the number of monthly parking passes issued and how some fees never made it to city coffers.
"It's easy to see where it could be theft, but it's not something we can prove yet," Podesta said.
The Problem Solvers did their own analysis of potential losses to taxpayers and found that proceeds from 100 parking passes -- at $285 per month -- never made it to the city treasury.
Losses could total more than $340,000 if the discrepancy has gone on since the last audit, which was roughly a year ago.
Seattle police are now investigating the issue.
"It reflects badly in that there's now been a series of irregularities," said Councilman Tim Burgess.
Councilman Nick Licata originally voted against the garage because of concessions to business, but he concedes that it does have its benefits.
"At that time I thought it was a bad deal," Licata said. "Today, we're losing money on it. It still looks like a bad deal. The counter argument is that we helped revitalize downtown."
The city has an offer of $55 million to sell the garage to the company that already operates the mall. The Seattle Finance Committee will look over the deal before sending it to the full council.
I park in this garage alot, how they are losing money is beyond me. It is usually full. Hope they find out if someone is helping themselves to the till!
 @Pollywannacracker OMG So True.
Hey city,
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If someone offers you $55,000,000.00 for your money pit, what they're really saying is...
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You are a total idiot. I will back up the dumptruck full of $100's for you, because you are the dumbest group of people I know. I want to buy this from you, please, let me. Only a total pinhead, nimrod could fail at selling concrete. For god sakes, take my money. You have failed at selling parking, in downtown, under a mall, surrounded by shoppers, surrounded by workers. This is clearly a bad business idea, here, let me give you $55,000,000.00 for it.Â
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I know this garage and use it several times a month, when open space is available. the garage should be a fat stuffed cash cow.
LOL, with what it costs to park, this thing should be bringing in HUGE profits! OK, it's not really funny at all that our elected City officials are so incompetent.
Hm, I will bet that provate enerprise would quickly assign responsibility and stop financial losses. Â The test may happen if the city decides to sell the parking garage. We will then have the basis for comparison.
Heaven forbid they should do something fiscally responsible.
What in the hell is the Seattle council doing running a parking garage? They should stick to running a city and doing something about keeping it out of debt, or would they rather follow some of the California cities that have filed for bankruptcy? Get your heads out of private business and work on making that city run right for a change. Another thing the city should do is get all those NIMBY suits dismissed and clear the way to get the new Basketball stadium built in the quickest time possible. That will bring in money, business, taxes, and without the city fingers in the works.
impossible to not make money at the current parking rates and occupancy rates.. something is wrong
How on earth do you lose money on a parking garage in the city?!!!! Seriously!!! Parking garages are like ATM machines for owners.
Another failed attempt at government trying to run a business.
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This 'should be' a no brainer. We'll see. I'm waiting on a new study to determine whether dumping the property is viable (while still losing money), or selling it to someone that can profit off of it.
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Odd how the governmint can lose money on a given venture, while others can profit off it.
Too much overhead?
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Nahhh...
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Hh me thinks some one is skimming and getting rich to boot.
 @Exiled_Patriot I think that someone is nervous as hell right about now. I think we'll see who that someone is in the near future.
 @Rockberry  @Exiled_Patriot I sure hope so!