Committee backs Portsmouth Square Garage financing package; sends $12.5 million loan to full Board

The Budget and Finance Committee recommended approval of a financing package for repairs and upgrades at Portsmouth Square Garage, forwarding the item to the full Board with a positive recommendation.

Katie Petruciani of the Recreation and Park Department outlined a proposed $12.5 million loan from First Republic Bank to the Portsmouth Plaza Parking Corporation for renovation work including staff area relocation, pedestrian circulation and lighting improvements, mechanical/electrical/plumbing/sprinkler upgrades, concrete repairs, a new fire alarm system, new parking revenue controls and new elevators. Petruciani said the garage, opened in 1961, has not had significant improvements in 55 years and that net revenue from the garage supports Rec and Park’s general fund; last fiscal year the department received about $1.2 million from the garage.

The loan has a 30‑year term at 3.3 percent, interest‑only during construction and then fully amortized; annual debt service is estimated at approximately $684,000. Budget analyst Mr. Rhodes presented the department’s cash‑flow analysis showing the garage can meet operating expenses, a $1,000,000 loan reserve and a 1.25x debt coverage ratio and recommended approval with findings that the financing would not create a liability to the city’s general fund.

Jerry Lee, president of the Portsmouth Plaza Parking Corporation board, testified in support and described potential operational improvements such as adding a gate and creating additional self‑park spaces. Supervisor Tang moved to forward the item to the full Board with a positive recommendation; motion carried without objection.