The Mobile County Commission voted Thursday to finalize the sale of the county-owned parking garage next to Government Plaza on Joachim Street, closing a deal that will bring $3 million into the county’s general fund.
The buyer, Downtown Parking LLC, is controlled by hotelier Theodora Mallick, who also owns the nearby Admiral Semmes Hotel on Joachim Street. Mallick’s company has leased the parking structure from the county for years, and the $3 million purchase price came in just above the building’s appraised value of $2.9 million, according to County Attorney Jay Ross.
Commission President Connie Hudson said after Thursday’s meeting that the county had not been profiting from the arrangement, and that officials decided a sale made more financial sense than continuing to hold and lease out the structure.
“If we were making a big profit from something, we sure wouldn’t be selling it off. I promise you,” Hudson said. She could not pinpoint exactly when the county took ownership of the garage, saying only that it predates construction of Government Plaza itself. “The money will go directly into the general fund, but this is not a recurring surplus. It’s a one-time sale of an asset.”
Hudson noted that the parking deck is currently underused, with its top two or three floors sitting largely empty. She said the new owner may look to renovate the facility and begin charging for spaces that have gone unused for years. “They may have plans to completely renovate it and charge for the spaces. At least that’s what I understood them to be doing,” Hudson said.
As part of the sale, the commission negotiated a three-year discounted parking rate for county employees who have long used the deck, along with a similar arrangement for staff at the Mobile County District Attorney’s office. Hudson said the deal covers roughly 50 spaces for county workers.
The garage sale was one of several real estate items the commission tackled Thursday. Commissioners also approved a $10,000 extension of the county’s purchase option on 116 acres near the interchange of Interstate 65 and Interstate 10, land that has been eyed for years as the site of a proposed $20.7 million tournament soccer complex.
The extension buys the county another 120 days to firm up the land deal. Under the terms of the option agreement, the $36,000 the county has paid to date to hold the property will be credited toward the eventual $2.9 million purchase price. The city of Mobile has also pledged $1.5 million toward buying the land, a sign of the project’s importance to both city and county leaders looking to boost the region’s sports tourism draw.
Hudson said Thursday she does not expect the commission to need another extension beyond the current 120-day window, and that a final decision on the land purchase could come before that period runs out.
One of the biggest remaining obstacles has been permitting through the U.S. Army Corps of Engineers, which recently asked county officials for more information about a planned water park and aquatic center that would be built during later phases of the sports complex project.
“We think we’re close to getting our permit through the Corps of Engineers, but there’s still some final details to work out,” Hudson said, adding that commissioners planned to meet again Friday to go over the outstanding issues. “I think we’ll be able to answer some of the remaining issues the Corps has, and I feel like we’re really close.”