Fall River Puts Pearl Street Garage Up for Sale With $1.4 Million Minimum Bid

The city officially put the Pearl Street Garage out to bid with an asking price of at least $1.4 million. 

An appraisal conducted last March valued the Pearl Street Garage without needed repairs to be valued at $2.6 million, according to a report.

A request for proposal to sell off the downtown parking garage was made public on Wednesday and is being sold “as is,” and with a long-term lease agreement attached with developer James Karam that could extend to 2043.

It’s been estimated that the structure, with the needed upgrades, could cost as much as $6.5 million. Due to those concerns, of the 374 parking spaces at Pearl Street, only 261 spots are useable. 

But, according to the terms of the RFP, the $1.4 million price tag is a suggestion and negotiable if a bidder has a good reason.

“The minimum suggested bid is $1,400,000. However, a bidder may propose a lesser amount provided the Price Proposal is accompanied by a written explanation by the bidder as to how the current condition of the Property or the existence of the Lease adversely affect the minimum suggested bid and why the amount proposed by the bidder is reasonable in light of said conditions.”

The closing date for interested parties submitting bids is September 14 at 2 p.m.

There will be an opportunity for a walk-through at the Pearl Street Garage at 10:00 a.m. and a Q and A will follow and be held in the Atrium at One Government Center at 11:00 a.m.

The city would prefer to keep the Pearl Street Garage an operating parking garage, noting in the RFP “a successful and vibrant downtown and Central Business District depends on the availability of convenient and safe off-street parking.”

However, due to being zoned as a Central Business District, other uses of the property could be had and include the construction of multifamily dwellings of 20 or more units, a hotel, a restaurant and other commercial uses.

Appraisers warning

The administration contracted to have the full appraisal of the property, which was built by the city in 1980. It was transferred over to the Fall River Redevelopment Authority in 2008.

Maintenance was deferred in both the Pearl Street garage and the city owned Third Street garage under FRRA and then transferred back to the city in 2019.

There is currently a $6.5 million renovation project at the Third Street garage that is due to be completed in October.

Karam took over the parking lease agreement, with modifications, in 2013 when he purchased the former Aetna building at 99 South Main Street.

In a 121-page appraisal report ordered by the administration, the garage is a “critical asset” to the downtown, but capital improvements and an increase of fees are a must “to maintain and enhance the facility’s value and functionality.”

But due to the possible long-term agreement with Karam until 2043, the below market rate rental payments, modest rental increases and the ability to claim all the parking spots if Karam chooses, the appraisers believe its unlikely a sale would go to a private entity.

According to the RFP, a panel will rate the bid responses, and if there is a new owner they will be subject to benchmarks, including repairs and renovations to begin by Jan. 30, 2027.