A private developer has proposed buying the city's parking lot at Steele Street and Third Avenue to build a multi-level parkade.

City planning manager Mike Gau brought forward a report at Tuesday evening's council meeting recommending that the city begin by looking at rezoning the property before putting the potential land sale out to tender.

During a press briefing on the issue Tuesday afternoon, Gau explained the city had opted not to build and operate a multi-level parkade in the past because studies have shown such a venture would be too expensive for the city.

"Now we actually have somebody coming forward,” he said of the expression of interest in the property that surfaced about six weeks ago.

Coun. Dave Stockdale noted at the council meeting that he's pleased the private sector has expressed an interest in the project, taking a bit of a weight of the city's shoulders.

Gau is not providing further details about who is promoting the proposal to buy the land and build their own parkade as those details are confidential.

As he pointed out, if the city moves ahead on it, it may not even be the developer who came forward that ends up with the land.

"It's triggered this process,” he said.

City policy states that the commercial land must first go out to tender to be sold, but before that even happens, council would have to consider rezoning.

At last night's meeting, council was asked to begin the process to rezone the Commercial-Downtown zoned property to an entirely new zone that has been proposed for this.

The site would be zoned Community Parking Garage. It would be subject to a number of restrictions and design guidelines aimed at encouraging mixed-use development and making the building more aesthetically-pleasing than many parkades.

A minimum requirement of 80 stalls would raise by 22 the number of parking spaces that are there now.

"It's quite possible there would be more stalls,” Gau said, later noting that the cost of renting a parking stall would be left up to the private developer.

Coun. Ranj Pillai argued the minimum number of stalls should be higher though, suggesting the site should hold upward of 100 to 150 vehicles.

"I'd like to see us bump that number up,” he said of the minimum at last night's meeting, noting the city's responsibility to provide enough parking.

He also suggested there should be three levels of parking, countering other suggestions the top floor could be used for condos.

"I think it's a phenomenal opportunity,” he said of selling off the lot.

As Gau pointed out to council though, the city is trying to balance its interest in providing parking with the business interests of developers.

If too much is asked by the city, he said, the project could lose its feasibility.

The city currently charges $162 per month or 62 cents an hour (including the GST) to park in the lot. Weekend parking is free.

The higher number of parking stalls would no doubt be a benefit to businesses in the downtown core, where parking is at a premium.

"From a convenience factor, this should allow Main Street to become more vibrant,” Gau said, noting the city has heard of some problem areas for parking.

While there would also be a maximum, the planning manager said that would depend on the final structure design, involving such things as setbacks and the 20-metre height restriction.

The primary use for the zone would be for a multi-level parking garage, though commercial retail space would be encouraged on the bottom level as a secondary use, city planner Ben Campbell explained.

A facade would include the use of at least two different materials and screening of the parking areas to make it more visually attractive.

Trees would also be incorporated along Steele Street for the visual effect. Lighting facing downward would also be encouraged to limit light pollution into the night sky.

Council has been given until next week to ponder the rezoning before voting on whether to move forward with it.

City staff are also busy getting the property value assessed to have it sold at a minimum market value, as per city policy.

It is also continuing to draft the land sale agreement.

"We're looking at a complicated sales agreement,” Gau said.

So far, conditions include a clause that would see the developer have four years to build from the time the building permit is issued. That permit would have to be obtained within two years of being awarded the tender.

If those timelines weren't met, the land would revert back to the city. There would also be clauses aimed at ensuring the current parking lot can be used for as long as possible prior to construction.

If council goes ahead with the zoning, a public hearing on the proposal would be held in May, with second and third readings coming forward in June.

It's expected tender documents would be drawn up in May, with the tender and sale agreement being released later that month before it is awarded in June.

At the earliest, Gau said, construction could begin in July.

Coun. Doug Graham was absent from Tuesday evening's meeting.