Editor's Note: This story was updated April 11 at 5:15 p.m. to include information about possible commission action at Monday's meeting.

The Frankfort City Commission will hear a proposal Monday on the development of Parcels B and C and  funding for the project.

Parcels B and C include the former sites of the Frankfort Convention Center and Fountain Place Shoppes.

"We'll be reviewing the development arrangement as it stands right now," Mayor Layne Wilkerson said about Monday's meeting, "and we could take a vote to pass a resolution to support the development agreement."

The proposal states the city would fund a state-mandated parking garage, which would have 300 spaces and is estimated to cost $8.5 million.

Wilkerson has said the plan is for the city to issue bonds for $3 million and the other $5.5 million to come from a grant from the Federal Transit Administration. The garage would also serve as the city's public transit hub.

The city hasn’t received confirmation of the grant, but city Grants Manager Rebecca Hall has said she is optimistic the city will receive it.

Marty Johnson, a businessman from Hazard, bought Parcels B and C from the state for $1,000 on the condition that the parking garage be built by 2022 and the land otherwise be developed in accordance with the city's Downtown Master Plan, which calls for mixed-use residential and commercial buildings on the property. The developer for the project is CRM Companies of Lexington.

Plans call for Parcels B and C to include mixed-use residential and commercial buildings.

In the proposal to be considered Monday night, the land for the parking garage would be conveyed to the city, and while the parking garage is being constructed, the developer would complete “sufficient plans for the private project elements” and have it approved by local and state agencies.

The developer would also construct the Washington Street extension and give it to the city as a public street.

The costs could be recovered through Tax Increment Financing (TIF), which pledges a portion of future property, sales and occupational tax revenues caused by development of property.

The proposal says the developer and city would jointly determine the date for activation of TIF, and they anticipate activating it no later than four years after execution.

The city’s obligation on the parking garage would be contingent on approval of the federal grant and the developer receiving a one-year extension, until 2023, of the deadline to have the parking garage constructed.

The garage would include a transit center and 5,000 square feet of administrative and public space.

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