A dispute between the developer of a proposed hotel and the Mt. Lebanon Parking Authority has led some officials to question whether the authority is overstepping its power.
Developer Ralph Murovich Sr. of Tymaco Land Development has been negotiating the purchase of two parcels of land now owned by the parking authority for almost two years for the development of a six-story, 77-room hotel.
Negotiations have been held up by the authority's demands for public parking with direct access off Washington Road.
'My belief is that the parking authority interprets its mission too narrowly,' Commissioner Dan Gigler said. 'They think it's just to supply parking. I think its mission is to manage the parking issues in the context of the overall community goals. That's where we differ.
'I think it would benefit the community if the parking authority got out of the real estate business. They have a role to play in issuing debt and overseeing parking. They're not designed to be holders of real estate.'
The conflict stems from a $463,000 loan the municipality gave the parking authority in 1987 to purchase parcels of land along Washington Road, including what is now the North lot, the Alfred lot and the North Garage.
The deal also included the air rights over Parse Way and the Light Rail Transit lines.
Commissioners have given two extensions on the repayment of that note after the 10-year, interest-free loan became due in 1997.
In an effort to repay the loan, commissioners and the parking authority approved another conveyance agreement earlier this year, in which the loan was again extended through the remainder of 2001. As part of the agreement, the parking authority would transfer the North lot and air rights to a purchaser approved by the municipality.
The municipality would like to sell the land to Murovich's company to develop the hotel, but the municipality and the authority differ on what the intent of the parking clause is.
Parking authority Chairman Dick Colver said at the time they signed the original conveyance agreement, there was no hotel project.
'How could we anticipate exactly where the parking spaces would be?' he said.
But officials argue that the absence of a specific location for these spaces does not require them to have direct access from Washington Road.
Murovich's plans call for a large parking deck off Parse Way, with pedestrian access to Washington Road. He has presented a number of compromises to accommodate the concerns of the authority, including providing valet parking for the public and leasing 25 spaces from the public parking deck for his hotel employees.
A second option gives the Parse Way public parking deck as many as 82 parking spaces, which would be operated by the authority, but Colver said it was unacceptable. The authority instead is proposing 20 metered parking spaces in the hotel's upper-level parking deck and 20 spaces for lease on the Parse Way level.
'I can't see people ... pulling into a hotel and telling an attendant to park their car. It's not desirable. We need to have parking spaces for the public separate and apart from the hotel,' he said. 'There are 71 parking spaces available on the Washington Road level. We're asking for 20 of those, which I think is fair.'
But Murovich called the authority's demands ridiculous.
'Their demands are absolutely impossible - to give them free access to a lot they're selling to us,' he said.
And Murovich is worried the delay will scare off investors.
'I don't think anyone questions that this is an ideal location,' he said. 'The problem is what's going to happen is the delay is going to turn the project sour. It's simply going to have a tainted look. It makes me nervous.'
The disagreement escalated Monday night after a brief meeting between Gigler, Commissioner Dave Humphreys and the parking authority.
After their meeting, commissioners conducted an executive session to discuss a threat of litigation made during the parking authority meeting and the possible removal of authority members.
'I can tell you that it's the strong consensus of the commission that if the parking authority doesn't go along with our plans, we'll make sure we find people who can sit on that authority that are willing to do so,' Gigler said. 'They need to think about the entire community's interest, not just where a few cars are going to be parked.'
And ultimately, the municipality has the final say in who the land will be sold to, Gigler said.
'The point is, we've been trying to negotiate amicably (with the authority), but they can't stop this sale. They won't stop this sale,' he said. 'This is too important to let internal bureaucratic wranglings hold it up. We need to proceed, and the naysayers and the reluctant people will just have to be left behind.'
Maggi Newhouse can be reached at mnewhouse@tribweb.com or (412) 306-4535.
