2013 Karam Contract Binds City of Fall River on Pearl Street Garage; Third Street Moves Forward with $6.5M Upgrades

The administration planned to invest $13 million in repairs to its two aging parking facilities, but that changed when a long-term lease agreement was discovered with a local businessman, and now one of the parking garages is about to go up for sale.

Work began on July 1 for the $6.5 million project on the Third Street parking garage that promises to produce a safer, more economically advantageous parking facility.

Mayor Paul Coogan said his administration intended the same repairs at the Pearl Street garage until the 2013 contract surfaced between developer James Karam and then-owner Fall River Redevelopment Authority.

The city’s two parking garages have been in disrepair for years and the upper decks at both have been cordoned off due to safety concerns.

Structural engineers at Tighe & Bond who inspected the two parking garages emphasized the critical need for comprehensive repairs and maintenance of the facilities.

What the contract says

According to terms of the contract, Karam legally has the option to renew the parking contract with the city until 2043 with minor increases in the monthly rental fees.

The initial contract was 10 years with an option to renew for four additional 5-year terms for a total not to exceed 30 years. He renewed the agreement after the 2023 expiration for five years.

Karam also has the right to rent the entire parking garage’s nearly 400 spaces beyond a 150-space minimum.

The first five years of the contract, the monthly fee was $35 a parking spot, with six percent increases every five years. 

“It binds the city until 2043, it regulates the cost the city can charge, and it regulates the transfer to another party,” said Coogan.

Meaning, whether the city invests the $6.5 million in the crumbling structure or sells it to a new owner, the contract remains intact.

“It really hamstrings the city on any future plans for that garage,” said Coogan. “So, the amount of money we would have to invest, we would probably be happy to work with the people that have the contract in 2043 to see if they want to take it.”

The city, under former Mayor Jasiel Correia II, with the approval of the City Council, took over ownership from the FFRA in 2019.

At the time the lease agreement was signed in 2013, the FRRA contracted with Executive Vice President Ken Fiola of the Bristol County Economic Development Consultants (formerly known as FROED) for management services.

Will Flanagan was mayor at the time.

The agreement was signed by then FRRA Chairman William Kenney and Karam on Aug. 22, 2013.

Coogan said he was unsure when the city would go out to bid to sell the Pearl Street garage but are designing specifications for the bid.

What’s happening at the Third Street garage?

Last month the Fall River Reporter toured the Third Street garage with City of Operations Director Al Oliveira and just days away from shutting down the aging parking facility for the repairs.

The top two floors have been cordoned off for several years, and the repairs and improvements will restore approximately 275 parking spaces for monthly or daily leases.

The city, he said, went out to bond to pay for the $6.5 million upgrade.

Oliveira pointed out cracks and dripping water on the cement beams and X-rays were done to determine the state of the rebar, some which are visible and corroded.

“The first thing that we did was go to the structural engineers find out if this is safe. Do we need to pull people out of here,” said Oliveira. “They came back and said this is safe. There’s some damage to the concrete that needs to be repaired, but the building is safe.”

Repairs to the drainage, stairwells and entrances are on the to-do list, and Oliveira said there are plans to make security enhancements to the garage, which have attracted the homeless and crime.

Since maintenance at the two parking garages has been woeful at best over the years, including salting the levels during snowstorms that cause the surfaces to crack and pit, Oliveira said they will implement a maintenance plan.

Originally the plan was to keep one hundred spaces open but decided to shut it down completely during repairs.

“What that does is it shrinks the schedule. Work was going until November and now we save about five weeks of construction and some funds,” said Oliveira.

While Pearl Street garage will likely be sold, Coogan said there are discussions on building a new parking facility next to the Third Street garage on the adjacent parking lot which the city owns.