‘The white box’: How Bethlehem's Walnut Street Garage debate hinges on what goes up next door

BETHLEHEM, Pa. — Most called it “the white box.” One person called it “the white elephant.”

A rendering showing a placeholder for what could go up next to the planned new parking deck at 33 W. Walnut St. in North Bethlehem's Historic District was the crux of Monday's City Council committee meeting.

Though nothing’s set in stone just yet for the garage land’s western end, city Community and Economic Development Director Laura Collins said the new neighboring building has been pitched to potentially:

• Be five to seven stories tall and an estimated 50-85 feet high. The garage now is 71 feet high on its far western end.
• Have 42-177 residential units
• Have 2,500-25,000 square feet of first-floor commercial space

Council members on Monday shared concerns and asked more questions on the garage and building next door.

Considering presentations from city administration and parking officials, Q-and-A from City Council and the public comment period, the meeting lasted just over five hours.

Council plans to vote next Tuesday on the certificate of appropriateness specific to the new garage build, which is a separate issue from the neighboring development.

The panel also will look at a recent rezoning measure and street vacations associated with the building next door.

'A united front'

Some residents and owners of businesses near the garage are still up in arms over its proposed height and potential sightline changes, as well as what the demolition could mean for business operations, parking availability and a potential World Heritage designation on the table for Bethlehem.

The discussion on Monday was a full house for some time, with unseated people having to stand in the Town Hall's rotunda doorways or sit in the hallway to be within earshot.

Some folks said the informational meeting happened "a year too late."

Here's a live look at the meeting's public comment period that started at nearly the four-hour mark.

'An incredible hypothetical'

Last January, the city and Bethlehem Parking Authority issued a request for proposals to find a “qualified development partner” and gather interest and potential concepts for the garage’s abutting project.

Four responses were received as of that March, but no particular partner or project has been chosen.

Mayor J. William Reynolds called the new development nearby an "incredible hypothetical" for this point in time, responding to concerns from some council members and residents about a "lack of transparency" surrounding the project.

The administration has cited Bethlehem’s housing crisis, a 2% vacancy rate and the site’s location close to Main Street as worthy causes to put up some kind of housing development.

Proposed timeline moving forward

According to a city-presented slideshow, the administration and BPA plans to select a preferred developer during the first quarter of this year.

Officials predict to have designs in hand for review during the first half of the year.

In the last six months of 2024, and if everything runs according to plan, the work would be submitted for review by the city Historical Architectural Review Board, City Council, and both the Planning Bureau and Planning Commission.

Pending required approvals, the project would move forward for a finalized agreement with BPA.

But the administration emphasized that the neighboring development and the new and improved Walnut Street Garage are “two different projects with different objectives.”

Officials said the new deck would need to be “right-sized” to fit the parking demand, be aesthetically complementary and appropriate to the surrounding Historic District, be a financially secure project and be built in a timely manner to minimize disruption to the downtown.

As for the neighboring development, it would need to bring vibrancy and appeal to the area, promote “feet on the street” and customers patronizing downtown merchants, complement Main Street and the surrounding area as well as be done by the work of the carefully selected partner, officials said.

Broader implications

Reynolds said the garage discussion is nuanced and goes beyond just the height of the new parking deck.

Beyond that, the current “overbuilt” 770-space deck could have the city face “severe” financial implications as a result, he said.

“It affects the future finances of the city, it affects the vibrancy of our downtown, it affects our ability to be able to support our businesses on both the North Side and the South Side and it affects our future,” Reynolds said.

BPA’s first proposed garage concept called for 590 spots and would cost $27 million, while the second 527-spot submission would run $24.1 million, according to the city.

Here’s a broader comparison of the two proposals.

A city financial outlook

As for the first proposal, BPA would take out a 30-year “mortgage,” paying back principal and interest for three decades.

But no parking deck that has debt is self-sustaining, officials said.

Payments would start at $1.5 million and rise to $2.4 million.

Walnut Street Garage permits in 2023 and transient revenues brought in $900,000 — but to make the payments, at least $600,000 would be needed from other sources to cover those costs.

An “in-kind” rebuild of the garage, which a number of residents have called for but city and parking officials have opposed, would run about $35 million — or around $45,000 per spot — and the city would need to back that debt, the mayor said.

A 30-year “mortgage” on that rebuild also would come with about $21 million, or $700,000 per year, over the life of the debt.

“That parking revenue doesn’t exist, thereby leading the city to have to guarantee the debt,” the city slideshow read.

“The city taxpayers are responsible for the revenue if the parking system doesn’t cover the debt.”

Not about the money

The mayor said data shows an average of 813 downtown parkers throughout any given day for on-street and off-street parkers.

And creating parking “turnover” is key, he said, adding that the same people driving into town for their office job aren’t the same folks living nearby and parking in the garage full-time.

“The parking authority isn’t about making money,” Reynolds said. “It’s about working on an integrated parking system.”

Even at some peak times, the garage still has about 400 spots available, he said, referencing BPA data.

During the city’s flagship events such as Musikfest, data shows those attending likely are walking, riding bikes or even ride sharing to get to the festivities, since the garage still has some availability, the mayor said.

Comments from those living nearby

Market Street resident Dan Nigito said the project is a “nonstarter,” and asked for officials to find some kind of middle ground, since HARB rejected both garage proposals so far.

George Hrab, a West Broad Street resident, said he’s lived near the garage for 30 years, and parked there basically every day since 1993.

“While it may seem unbelievable, in all those 360 months, I’ve always found a spot to park," Hrab said. "I realize that goes against what some may believe is true.

“But through Musikfests, Christmases, holidays and even predicted snowstorms, I knew my car would have space in the Walnut Street Garage — and it always did.”

What's known, what's to come

Since the land where the garage sits is in both business and residential zoning districts, a change to all business zoning was required to let BPA later bring a mixed-use site to the land’s western end.

The City Planning Commission on Jan. 11 unanimously approved that change, along with two partial street vacations to give BPA right-of-way access to the nearby roadway.

City Council will have the final say.

A public hearing regarding that land and zoning change is coming up on Feb. 6.

HARB first looked at a proposal for demolition of the garage back in August, later approving the demolition in September.

City Council approved the razing in October.

But in the meantime, HARB has had a number of meetings to discuss the appropriateness of the new garage and its placement within the Historic District.

As of now, the garage is coming down with no set plan on what the replacement will look like.

BPA plans to have a new completed garage by the end of 2025.