A plan to offer discounted parking in the Water Street Garage to help keep the Citizens Property Insurance Corp. offices Downtown was approved Jan. 21 by the Downtown Investment Authority board of directors.
The state property casualty loss insurer currently operates in the 30-story high-rise at 301 W. Bay St.
With its lease there set to expire in June 2026, Citizens issued an invitation to negotiate with requirements that included 203,000 to 215,000 square feet of space, a minimum of 1,107 parking spaces, offices either in a single building or within the same campus and a lease with an initial 10-year term and renewal options.
On Jan. 17, Citizens opened bids from seven respondents. They include its current landlord and two others on the Downtown Northbank near the city-owned Water Street Parking Garage.
The parking deal would go to the landlord selected by Citizens.
The published public rate for monthly parking in the garage is $70 plus tax. The city offers a 10% discount for 500 or more spaces.
DIA CEO Lori Boyer said the debt is paid off on the Water Street Garage and that leasing even 500 spaces in it to Citizens could make it break even or be profitable based on operating expense.
The board authorized Boyer to negotiate an even lower rate if that would help motivate the company to remain Downtown.
Boyer said if an additional discount is negotiated, the monthly rate would have to be approved by City Council.
Citizens says it plans to award the bid Feb. 28. It wants its new offices ready for full occupancy by June 1, 2026.
Here is other DIA board action.
The board agreed to amend the agreement with the operators of the proposed Dorothy’s Downtown restaurant at 21 E. Adams St. in the former Burrito Gallery space.
In September 2024 DIA approved a $167,380 Food and Beverage Retail Enhancement Program grant and a $5,675 Sidewalk Enhancement Program grant for the project.
The original agreement required the restaurant to be open for lunch and dinner.
Boyer said the operators want to change the opening hours to 3 p.m. to 9 p.m. or 10 p.m. Wednesday-Sunday.
She said lunch service is “aspirational” and the operators are committed to expanding the hours to include lunch as they develop staff and demand grows.
The board approved spending up to $250,000 to help WJCT Inc. develop a master way finding and signage plan for the city-owned property that WJCT leases along Festival Park Avenue.
DIA Operations Manager Guy Parola said the demolition of the Hart Bridge Expressway ramp and construction on East Bay Street related to the Four Seasons Hotel and the relocation of Fire Station 39 has disrupted the traffic flow around WJCT’s offices and studios.
“This is for the benefit of WJCT and our property,” Parola said.
Boyer is authorized to formally terminate the July 23, 1999, agreement between the city and DB Holdings, as subsequently amended, regarding development of the Berkman Plaza residential housing development along East Bay Street.
The first phase was finished but development of the second phase at 500 E. Bay St. stopped when its parking garage under construction collapsed in December 2007.
Further development efforts floundered for more than 15 years until Choate Construction Co. of Atlanta purchased the property for about $5 million in a July 2024 foreclosure auction.
Boyer said Choate thinks they may have a buyer for the property and they want to “clean up the record” by terminating the 25-year old original redevelopment agreement.
Boyer said the city selected Greensboro, North Carolina, executive search firm Jorgenson Pace to recruit her successor and is negotiating a contract for the service.
She has led the DIA since 2019 and received a two-year contract extension in May 2024. Boyer committed to serving through that time, including working for several months to onboard her replacement.
“We hope to have a contract in the next couple of weeks and be in the market in March,” Boyer said.