Larry Hilliard– Chairperson
Candida Affa- Vice Chairperson
Sara Hailstone– Secretary
Mary Ellen Koval-Treasurer
Ray O’Connell-Assistant Secretary
Tamara Dolan - Executive Director
Daniel K. McCarthy - APA Solicitor
ALLENTOWN PARKING AUTHORITY
BOARD OF DIRECTORS MINUTES
A regular meeting of the Allentown Parking Authority Board was held August 27th, 2014 at the offices
of the Allentown Parking Authority located at 603 W. Linden Street.
The following were in attendance:
Larry Hilliard-Chairperson
Candida Affa-Vice Chairperson
Sara Hailstone-Secretary
Mary Ellen Koval-Treasurer
Also in attendance:
Tamara Dolan-APA Executive Director
Daniel McCarthy-APA Solicitor
Connie Abercrombie-Finance Manager
George J. Grazer Jr.-Manager of On-Street Operations
Dean Schwartz-Events Operations Manager
Marge Hopkins- Minutes
Todd Helmer-Tim Haas
Tony Ganguzza-Boyle Construction
Malcolm Gross-Gross McGinley Law Firm
Bruce Loch-Developer
Emily Opilo-The Morning Call
Larry Hilliard called the Board meeting to order at 12:03 pm
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MINUTES
Mr. Hilliard asked for a motion to approve the Minutes from the July meeting as well as the special
meeting that was held August 6th, 2014. Candida Affa made a motion to approve the Minutes from both
Board meetings, Mary Ellen Koval seconded the motion, all were in favor and the motion was approved.
OLD BUSINESS
Courtyard
Mr. Hilliard addressed the Board to open the discussion regarding options for an extension Mr. Loch had
requested regarding the development of the Courtyard property at 9th and Walnut Street. Dan McCarthy
stated that certain landmarks were to have occurred within a specific time frame, according to the
agreement of sale. One of those landmarks was to secure tenancy, which according to Mr. McCarthy,
has not been done. On August 4th, 2014, Attorney Malcolm Gross sent the Allentown Parking Authority
a letter indicating there was a series of negotiations going on with perspective tenants, yet none had been
secured. The letter also stated that whether or not the developer secured tenancy, he would like to
acquire the property. According to the agreement, there would be a period of time to secure tenants,
financing, zoning approval, and a certificate of occupancy and purchase the property and begin
development. At the time of the certificate of occupancy, the portion of the agreement would begin that
concerns the APA providing 250 parking spaces for the development. Since 2013, the APA, continued
Mr. McCarthy, has not seen an updated artist rendering of the project, and as such requested specificity
and updated plans. Mr. Hilliard stated that the Board is not opposed to selling that parcel of land;
however, maintaining the commitment to assist with financial help to expand the parking deck is not
feasible given the opportunity to develop parking at other locations in downtown Allentown. Mr.
McCarthy stated that the agreement does not require the APA to expand the deck but rather to provide
the developer with 250 spaces. The current timeline, continued Mr. McCarthy, for the construction
would be May 2015 and extension would push the date to October 2015. Mr. Loch addressed the Board
stating that since the last meeting with the APA, his development team has been diligently working on
the project and has spent a great deal of money for the architectural and engineering plans as well as
recording the plans at the courthouse, Mr. Loch presented the Board with a copy of the brochure. The
Landmark building will be the tallest building in 65 counties, according to Mr. Loch and will have 29
floors with a 7030 square foot penthouse on the top floor. Mr. Gross stated that the original agreement
had a series of milestones, one of which requires the developer to have a signed tenant letter, not a lease
and the developer has the right to have extended the agreement until August 6th, 2014. The agreement,
continued Mr. Gross, also permits an inspection period which doesn’t end until November 6, 2014 with
a subsequent 30 day period to close. The parking is not needed, Mr. Gross stated, until the certificate of
occupancy is obtained and to secure the tenants, parking must be provided. Mr. Gross suggested that the
tenant commitment time be extended to November 6th to coincide with the inspection period and asked
for a closing date in January 2015.
12:30 pm-The Board went into Executive Session to discuss real estate.
12:49pm -The Board came out of Executive Session
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Courtyard continued
Mr. Hilliard addressed the Board stating that the APA had options regarding the Courtyard agreement
and turned the discussion over to Mr. McCarthy. According to Mr. McCarthy, the concept of the new
agreement would be to extend the agreement until November 6th, 2014 and all provisions of the
agreement would remain in full force and effect. Concerning the development, the Board also requested
more specificity in regard to the project and the scope of the project and changes. Mr. Loch stated that
should the plans change, the parking aspect will remain in proportion to tenancy. Continuing, Mr.
McCarthy stated that should construction not begin by a specific date, the Allentown Parking Authority
would like to add a provision to purchase the property back from Mr. Loch, less ten percent of the
purchase price. Malcolm Gross responded that the two parties could discuss the provisions at a later date.
Mr. Hilliard asked Board members for a vote on the extension. Ms. Affa made a motion to approve the
extension, Sara Hailstone seconded the motion, all were in favor and the extension was approved.
Community Deck Plan
Tamara Dolan stated that since the last Board meeting the APA has received preliminary approval from
the Planning Commission for the construction of the Community Deck and some changes have been
made to the plans presented at the last meeting. According to Ms. Dolan, the main tenant has requested
that the elevator lobby be moved from the north west corner to the north east corner; however, under the
advice of the architects at Tim Haahs and the construction management team at Boyle Construction, the
move is not feasible because moving the elevator to the other corner would cause conflict between the
pedestrians in the facility and vehicular traffic. After further review it was suggested that the elevator
could be moved toward the middle of the north wall without much impact on the design or budget. The
APA continues to review the issue with the architects and construction teams. Ms. Dolan continued
stating that she attended a meeting with the Mayor to discuss proposed residential and commercial
component to the design to be constructed concurrently. Ms. Dolan presented the suggestion to Todd
Helmer and Tony Ganguzza and asked them to address the Board with regard to the effect to the budget
and construction timeline and opportunities that can arise from the change. Todd Helmer addressed the
Board and stated that the suggestion to make the plan to include a residential wrap to be built
concurrently would change both the timeline and budget. Tony Ganguzza stated that having the
residential component constructed after the deck is built would result in greater construction costs, and
extended timeline, and the closure of the deck at some point and time for the wrap construction;
therefore, it would be cost and timeline effective to include the wrap during the initial construction. Ms.
Hailstone stated that the planning department would like to see the residential component included in the
initial project. Mr. Helmer stated that by doing the wrap at the time of the initial construction, the APA
would not have to do the green scape portion twice per the two phases of construction, and the walls
would be prepared for the wrap, resulting in a savings to the APA. Tony Ganguzza addressed the Board
and stated that even with the cost savings of adding the wrap at the time of construction, the addition of
the wrap will impact the budget and timeline.
Sacred Heart Hospital
Ms. Dolan and Mr. Hilliard met recently with representatives from Sacred Heart Hospital. It was
expressed by SHH representatives during the meeting, according to Mr. Hilliard, that the APA manage
the facilities. Mr. Hilliard stated that, $2.5 million would be needed to bring the facilities to the
operational level of the APA parking structures and although the project is vital to the area and in the
range of a parking commitment by the APA, the revenue flow would have to increase to make the
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repairs to the Chew Street deck. The APA made suggestions to SHH on how to manage their expenses
and realize savings while operating the structures. Ms. Dolan stated the Connie Abercrombie will meet
with SHH to discuss the APA managing the two parking decks.
531 Walnut Street
Ms. Dolan stated that the property at 531 Walnut Street was purchased from a third party and the APA is
in turn going to purchase the property from the buyer at cost, or $625,000. The closing date for the
property is December 1, 2014 and the APA will be able to then begin development of the lot. Mr.
McCarthy stated that the agreement defines that the third party has purchased the property for $625,000
and will sign the agreement of sale to sell the property to the APA for the negotiated price determined by
third party and after December 1, 2014, the property will be tenant free, allowing the APA to begin
construction. Mr. Hilliard stated that the property at 531 Walnut will have to be demolished for
construction to begin. In order to have the agreement signed by a Board member, Mr. Hilliard asked the
Board for a vote to authorize the agreement, accepting the assignment of the buyer and authorize the
purchase of the property at 531 Walnut Street under the terms and provisions of the agreement of sale.
Ms. Affa made a motion to approve the motion, Ms. Koval seconded the agreement, all were in favor
and the motion was approved. Mr. Hilliard signed the agreement.
Pay by Cell
Ms. Dolan reported that the Mobile Now trial period was successful and the data reflected 18 sessions in
May and by July, the APA was at 115 sessions and she projected continued growth. Ms. Dolan stated
that the APA would like to sign a three-year incremental agreement with Mobile Now. Mr. Hilliard
stated that through education and marketing parkers were informed on how to utilize the service;
however, the usage rate was much higher during comparable trial periods than in neighboring cities. Ms.
Dolan stated that the APA had “meter greeters” on site for a period of time to explain how to use the
service. Ms. Hailstone suggested that the APA present information to attendees at Community Day and
Ms. Dolan stated the she would investigate that option. Mr. Hilliard asked for a motion to enter into an
agreement with Mobile Now. Ms. Affa made a motion to approve, Ms. Hailstone seconded the
agreement, all were in favor and the motion was approved.
NEW BUSINESS
None.
EXECUTIVE DIRECTOR’S REPORT
Spiral Upgrades
Ms. Dolan reported that most of the upgrades on the Spiral deck have been completed and with the
exception of the elevator, all others will be completed by September 1st, 2014. There was also a minor
issue with the wrap for the pedestrian walkway on Lumber Street and the wrap will not arrive on time.
The APA addressed the situation by painting the walls the color of the wrap which will be suitable until
the wrap arrives. Ms. Dolan stated that the Helix lighting and the generator wiall also not be installed by
the opening of the arena.
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Way finding Study
The signs to direct the public to available parking facilities are complete and are being installed,
according to Ms. Dolan.
Lehigh Valley Health Network
Ms. Dolan stated that the staff at LVHN has occupied their new facility at the arena facility and have
begun parking at the new deck and the APA is close to an agreement to manage the deck. Ms. Dolan
stated that it has been a pleasure working with the team at LVHN and other tenants as well and that the
APA looks forward to helping the tenants meet their parking needs.
Financing Phases
Ms. Dolan reported that the APA financing is going well and that the refinancing of outstanding debt
will close in two weeks and the new financing for construction will close before the construction begins.
FINANCE REPORT
July and Year-to Date
Ms. Abercrombie presented the Statement of Revenue and Expenses as Compared to Budget for the
period ending July, 31, 2014 and reported that revenue and expenses for July were above budget;
however total revenue exceeded expenses by $211,495. Ms. Abercrombie explained that the operating
expense increase was due largely in part for the preparation for the arena opening and extra staff and
supplies. The year-to-date figures indicate that revenue exceeded operating expenses by $1,501, 735 and
after debt service and payments to the city; the excess revenue through July 31, 2014 was $364,316.
Continuing, Ms. Abercrombie asked the Board members to keep in mind that the APA has not spent a
good deal of their capital budget for expenses and some of the larger capital projects currently being
undertaken will be paid for later in the year. The projections for the end of the year indicate favorable
variance, a direct result of the debt refinancing, according to Ms. Abercrombie.
Internal Controls
Mr. Hilliard stated that in the next few months the APA will be managing more revenue and Ms. Koval
has been working with the APA to develop new processes for internal cash control. Ms. Dolan reported
that the APA will adopt the processes, aided by the new finance technician position, and that the
suggestion to have a camera in the counting room has been in place for years.
Board Meeting Dates
Due to a scheduling conflict the September Board meeting will take place on September 30th, 2014, at
noon. Mr. Hilliard stated that the historically the Board has not had a November or December Board
meeting; however, with the upcoming developments, a meeting will need to be held. Ms. Dolan asked
Board members to keep November 20th and December 2nd open for the meeting.
Courtesy of the Floor
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None.
Adjournment
The meeting was adjourned at 1:30pm
THE NEXT BOARD MEETING WILL BE HELD AT 12PM ON SEPTEMBER 30th
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