The City of Utica has reached an agreement to sell the Kennedy Parking Garage to developers Pike and Bowers for $1.5 million.

Mayor Robert Palmieri says Pike and Bower’s application calls for necessary repairs to the 595-parking space garage and the construction of a hotel above the existing garage.

He says the city's most recent estimate to repair the Kennedy Garage is $13 million.

Palmieri says the sale will yield a $15 million benefit to Utica taxpayers, put the property on the tax rolls and expand the city’s tax base.

This is an exciting day for Utica’s continued transformation. The selling of Kennedy Garage is a win-win for our entire community. The sale will save millions of dollars, expand the city’s tax base and allow us to invest in our parking infrastructure. There will be the possibility of newly constructed parking spaces, and Kennedy and Washington Street Garages will be repaired in time for MVHS’ opening. This plan will also increase public downtown parking capacity, and the construction of a new hotel will facilitate further economic development," said Palmieri.

The final sale must be approved by the Common Council.

Officials with Mohawk Valley Health System say they were surprised to learn of the sale of the Kennedy Parking Garage.

In a statement, MVHS says while they have kept the city informed of their efforts, MVHS is not involved and has not been asked to be involved in the Pike and Bowers development as referenced by the mayor.

The Kennedy Garage is connected to the former Mohawk Hospital Equipment Building, which is now owned by MVHS, and is being converted to serve as the Wynn Hospital’s Central Utility Plant.

MVHS officials say they believe the development of a hotel at that location will be very complex and costly and could negatively impact the hospital’s utility plant.

They’re also concerned about the impact that the proposed Pike and Bowers development could have on the availability of parking as outlined in a Memorandum of Agreement signed by all parties.

Officials say moving forward, they’re hopeful that they can work collaboratively with the city on completion of the hospital.

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