Attorney Herbert Thornbury on Monday criticized the parking lot deal CARTA made with apartment developer Mitch Patel as being unfair to the public.
Attorney Thornbury spoke Monday to board members of the Chattanooga Downtown Redevelopment Corporation, stating CARTA agreed to lease 75 spaces at the Renaissance Park public parking lot for Mr. Patel’s residential apartment and retail project, Vision Chattanooga Northshore.
The CDRC, the board that owns the land on which the Renaissance Parking Lot resides, entered into an agreement with CARTA in 2007 stating the Renaissance Parking Lot was reserved for members of the public.
The agreement between CARTA and CDRC states: "CARTA may utilize the Parcels only as surface parking lots, or as dedicated parking reserved for use and support of civic events such as the annual Riverbend Festival. If any other use is proposed by CARTA, CARTA shall obtain the prior written consent of CDRC for such proposed alternative use."
According to attorney Thornbury, CARTA violated its agreement with CDRC by leasing the 75 spaces without obtaining written consent.
There are 269 parking spaces at Renaissance Park, 120 of which belong to One North Shore Condominiums, said attorney Thornbury. His concern is that with the additional 75 spaces being leased to VCN, only 74 of the original 269 spaces will remain for the public.
The city values Renaissance Park at $14 million, a value that is wrapped up within the 269 parking spaces, he said. The CDRC has given 67 percent of the parking away since 2007, he stated.
He pointed out that neighboring Bridgeview Condos paid $30,000 per parking space for a total of 235 spaces, amounting to $2.5 million paid on parking. Contrasting this, tenants of VCN will pay $30 per month to validate their vehicles for parking in the 75 spaces.
When questioned why they were allowing this to happen, CDRC board members responded they did not realize this agreement had been made. Chief of Staff Stacy Richardson stated the board would take some time to review this case and discuss it in depth later.
Construction on VCN began 45 days ago.