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Council approves package clearing way for University Square public parking garage and related agreements
Summary
Council voted unanimously to approve a bundle of emergency ordinances enabling the University Square (to be known as Bell Tower Center) parking garage project, including a guaranty agreement, a cooperative TIF-related agreement tied to $8 million in port authority bonds, and several easement and lease amendments.
Vice Mayor Michele Weiss and all attending council members voted on a coordinated set of measures to advance the University Square development, including approvals that create a Community Improvement Corporation (CIC) ownership structure for a public parking garage and authorize financing and contractual arrangements tied to the project.
The package approved on Sept. 3 included Ordinance 2024-48 (University Square parking regulations), Ordinance 2024-49 (a city guaranty agreement in favor of University Square Acquisitions, Target Corporation and Macy’s Retail Holdings, LLC), and Ordinance 2024-50, authorizing a cooperative agreement related to $8,000,000 in Cleveland‑Cuyahoga County Port Authority tax increment revenue refunding bonds for the University Heights public parking garage. Council also passed a second amendment to a reciprocal easement agreement (Ordinance 2024-51), a supplemental development agreement for parking facility modification (Ordinance 2024-52), termination and quitclaim of certain ground leases (Ordinance 2024-53), a TIF escrow agreement (Ordinance 2024-55), and an amendment and assignment of the University Square development agreement (Ordinance 2024-56). The Council additionally approved a motion allowing substitution of Bell Tower Center, LLC for University Square Acquisitions, LLC for the relevant agenda items.
Luke McConville, the City's legal counsel, explained that the transaction structure contemplates a City‑created CIC owning the garage and entering contracts with the developer and with Target. McConville said the developer, Target and the CIC would each contribute $50,000 per year for 10 years into a capital repair fund that is expected to accumulate to approximately $1.5 million; McConville added that any capital repairs above that threshold would be shared by the parties one‑third each, with each party holding veto authority over expenditures. "Capital repairs would be subject to monies placed into a capital repair fund by the CIC, Target and the Developer in the amount of $50,000 per year for 10 years to accumulate up to 1.5 million," McConville said.
Council members asked procedural questions about whether a formal Council recommendation to the CIC was necessary. Law Director Bradric Bryan and McConville advised that CIC approvals that the CIC is party to are not strictly contingent on a Council recommendation and that the intention of putting the documents on the public agenda was to ensure Council members received the materials and understood how the pieces fit together.
All votes on the ordinances in this package were taken on emergency passage; the minutes record unanimous affirmative roll calls for each item. The council also confirmed two appointments to the University Heights Parking Garage Community Improvement Corporation board: Finance Committee member Rick Brenner and Micah Maliskas.
What happens next: the approvals permit the city and the CIC to move forward with the contractual and financing steps necessary to construct and operate the parking garage. The package includes provisions enabling a substitution to Bell Tower Center, LLC if the developer elects to assign its interest to that entity.
Votes at a glance (as recorded in the meeting minutes): Ordinance 2024-48 (University Square Parking Regulations): approved (roll call: all present voted "aye"). Ordinance 2024-49 (City guaranty agreement): approved (roll call: all present voted "aye"). Ordinance 2024-50 (Cooperative agreement/TIF bonds, $8,000,000): approved (roll call: all present voted "aye"). Ordinance 2024-51 (Reciprocal easement amendment): approved (roll call: all present voted "aye"). Ordinance 2024-52 (Supplemental development agreement): approved (roll call: all present voted "aye"). Ordinance 2024-53 (Termination of ground lease/quitclaim): approved (roll call: all present voted "aye"). Ordinance 2024-55 (TIF escrow agreement): approved (roll call: all present voted "aye"). Ordinance 2024-56 (Amend/assign development agreement): approved (roll call: all present voted "aye").
Quotes in context: McConville summarized the capital repair funding formula and veto provisions for expenditures; Law Director Bradric Bryan confirmed Council did not need to make a formal motion to refer the CIC contracts to the CIC for approval. Councilmembers thanked staff and outside counsel for their work on the multi‑year project.
Provenance: primary discussion of the University Square package began with the executive session motion and related agenda items (transcript segments beginning SEG 032 through SEG 050) and the legal/transaction details referenced in SEG 040–042.
No new appropriations or capital expenditures for construction were recorded in the minutes beyond contract approvals and the financing authorization steps; specific construction timelines and final costs were not included in the meeting record. The Council tabled a separate related assessment resolution (Resolution 2024-58) for later consideration.
