Council buys central city car park

Hamilton City Council has purchased the Downtown Plaza car park for the strategically important role it will play in the revitalisation of the central city.

The underground car park has been bought for $9 million from Metro Parking W and H Limited (operated by Wilson Parking) with ownership changing hands on 1 September 2009.

Hamilton Mayor Bob Simcock says the 460-space car park is a critically important strategic asset when considering how the CityHeart will be further developed and revitalised.

Work is ongoing on CityHeart – a project to create a vibrant and distinctive heart for Hamilton.

"Council is committed to seeing CityHeart flourish and this car park is likely to have a significant part to play in influencing the overall parking strategy in the central city. We see the car park purchase as one of the responses to the challenges facing the CityHeart with increased competition from outlying retail precincts."

This parking asset, combined with other significant Council sites including the Knox Street car park, River Road car park and parking spaces available at the Victoria On the River site (at the end of Collingwood Street) give Council the ability to shape how off- street parking operates.

"We want to be able to positively influence the attraction of more shoppers and people coming into the CityHeart for their entertainment and relaxation. How we plan around parking as a Council will have a big part to play," says Mayor Simcock.

Council intends to move the entrance to the car park as part of new Garden Place function and design. This will see the removal of the concrete wall structure over what is now the main car park entrance on the corner of Alexandra Street and Caro Street. Owning the car park will make that change possible.

The car park purchase will be funded by loan, with revenue from the parking fees used to repay the interest on the loan. Income from parking fees has been ahead of budget for the current year.

The car park was built by Council and sold in 1998 for $3.5 million. At the time the car park had a valuation of $2.8 million. The Council at the time decided to sell the car park to reduce debt.

Mayor Simcock says that as it has transpired, it would have been better for Council to have retained ownership.

"Retaining ownership of the car park is more important for the strategic value it has. While a previous Council decided it needed the money, the value to the city created by having a well functioning central city is considerable."