Beaufort council approves purchase of 500 Carteret St. despite last-minute changes

The city of Beaufort will buy a downtown property for additional parking, but the decision-makers were divided after some last-minute changes to the agreement.

City Council voted 3-2 Tuesday to enter a lease-purchase agreement on 500 Carteret St., a parking lot and office space. Under the agreement, the city will pay $250,000 cash for the empty lot and make payments on the office space until it is paid off in three years.

Council voted unanimously on the purchase last week when it was a traditional mortgage. Because of laws requiring how the city can borrow, the agreement was amended to be a lease-purchase, city attorney Bill Harvey told council members.

Seller Parker Barnes wanted the deal done before the end of the year for its tax advantages, Harvey said. Councilmen Stephen Murray and Phil Cromer opposed the deal, saying they didn't receive the new agreement until Tuesday afternoon and wanted more time to look over details.

"We're playing fast and loose with the public money, and I'm not going to be part of that," Murray said.

But those in favor, including Mayor Billy Keyserling, said the final terms were essentially what had been discussed for a while and that the purchase satisfies a need identified by a parking task force for more parking and dedicated spaces for employees.

"This is essentially the same deal," Keyserling said.

Developer Dick Stewart also spoke in opposition to the purchase, saying multiple consultants have shown the area would not benefit downtown parking.

The city says the Carteret Street property will create up to 91 parking spaces with office space that could spur redevelopment.

The city will eventually need 500 spaces, the parking committee said. And that means a parking garage is still on the table.

"This is not replacing the need for a parking garage," Prokop said last week. "If a parking garage is built, this location may no longer be needed by the city."

City Council members had said they support the Carteret Street purchase as an interim solution while waiting on an expensive parking garage, which could require a sales-tax referendum.

A parking garage has been identified as a priority by the city if a capital sales tax makes the ballot next year. A preliminary estimate on the garage last year was $16 million.

Keyserling said Tuesday he doesn't believe the capital sales tax will reach the ballot and that this short-term solution is needed.

Follow reporter Stephen Fastenau at twitter.com/IPBG_Stephen.

Related content:

• Beaufort plans to buy Carteret Street property for additional parking, Dec. 10, 2015
• More parking space a priority as city of Beaufort addresses parking task force suggestions, June 30, 2016
• Panel: Beaufort should stop offering free parking, June 11, 2015

This story was originally published December 22, 2015 at 9:26 AM with the headline "Beaufort council approves purchase of 500 Carteret St. despite last-minute changes."