Business owners call city’s plan to replace parking garage with apartment building part of ‘pie in the sky’ vision for downtown

The Seneca Street parking garage is in the middle of a tug of war. Voices are AI generated. The Ithaca Voice is not responsible for mispronunciations. The Ithaca Common Council is moving ahead with plans to try to replace the decaying garage with a housing development without a parking requirement. Downtown Ithaca businesses are fighting back. They argue that the loss of publicly accessible parking will harm commerce on the Ithaca Commons, the city’s commercial and pedestrian corridor. The 425-space parking garage is past its useful lifespan of 30 to 50 years. It was shut down in April after debris began to fall from the 53-year-old garage’s upper floors . City officials say downtown parking remains underutilized, even with the garage closed, and that the cost of repairing or replacing the structure would be prohibitive. They also argue that the garage’s downtown location presents a unique development opportunity. The Common Council voted in September to transfer the property to the Ithaca Urban Renewal Agency (IURA), a public benefit corporation that is legally separate from the city but works to promote economic development in Ithaca. The IURA is tasked with structuring a sales agreement to enable the redevelopment of the property. By transferring the property to the agency, the city can avoid certain legal requirements for the sale of municipal properties, such as selling the site through an auction or sealed bidding process. The city is seeking a developer that can build more housing downtown, meet environmental goals and construct a new bus stop and shelter. A housing development that features space for businesses or amenities is what much of the Common Council believes is best for downtown Ithaca. “A building that brings residents downtown and puts eyes on the street does far more for businesses than another concrete structure ever could,” Mayor Robert Cantelmo said in an email. Downtown business owners, however, disagree with the city’s plan. With the garage currently shut down, many of them argue that losing hundreds of parking spaces so close to the Ithaca Commons has already harmed local businesses. Demolition of the building  would ultimately contribute to what business owners characterize as an unfriendly environment for commerce on the Commons, fueled by concerns over public safety and lack of convenient parking options. Timeline of events December 2022: WGI, an engineering firm, produced a report commissioned by the city on the condition of the Seneca Street Parking Garage at 202 E. Seneca St. September 2025: A second report by WGI raised more questions about the future of the garage and included estimates for the potential costs of repairs. April 10, 2026: The city of Ithaca closed the Seneca Street parking garage, citing its rapidly deteriorating state and the safety risks it could pose. May 7, 2026: The city shuttered the garage permanently after an additional engineering review confirmed the extent of structural deterioration. Sept. 2, 2026: The Ithaca Common Council approved a resolution in an 8-1 vote to transfer the garage to the Ithaca Urban Renewal Agency (IURA), contingent on a disposition and development agreement that results in the construction of a mixed-income housing project. The project is also meant to include a bus stop and shelter and incorporate the city’s environmental goals. Alderperson Margaret Fabrizio was the lone no vote. Sept. 24, 2026: IURA members voted unanimously to accept the Common Council’s resolution. Oct. 14, 2026: City Manager Dominick Recckio, Acting Superintendent of Public Works Scott Gibson, Fire Chief Mike Moody and Deputy Fire Chief and Fire Marshal Rob Shepherd delivered a presentation to the Common Council regarding the current state of the garage. An online petition is attempting to make the case to city officials that they should pursue all opportunities to extend the life of the garage. As of this reporting, it has garnered about 970 signatures. “It’s not just about parking spaces, it’s about the future of this whole area.” said John O’Leary, owner of Ithaca Ale House and one of signatories of the petition. He wants the city to commission a new study to assess the required repairs to the garage and its structural integrity. O’Leary said the garage’s closure has caused customers to miss their reservations at his establishment or arrive late, creating seating and scheduling challenges. Moosewood Restaurant’s ownership wrote the petition, arguing that the eventual demolition of the garage before redevelopment would also disrupt the flow of transit in the area, causing immediate harm to nearby businesses. The owners did not respond to requests for an interview with The Ithaca Voice. Several business owners have also spoken at council meetings in the last two months, rejecting the city’s plan to redevelop the property. City leaders have largely rejected concerns about a lack of parking downtown, arguing that there are plenty of spaces. Cantelmo told The Ithaca Voice the city estimates that the Cayuga Street garage — one of the two downtown parking garage options — sits at about half-empty on an average day. “That figure holds up against the seasonal swings, including the student and family influx at the start of the academic year and the peak tourism months,” the mayor said in an email. Disagreements over what the city should do with the Seneca Street parking garage come at a critical juncture for downtown Ithaca. A recent study commissioned by the Downtown Ithaca Alliance indicates that the city’s downtown is underachieving amid dwindling foot traffic and a slew of vacant storefronts. At the same time, New York state recently awarded the city a Downtown Revitalization Initiative grant — a $10 million grant to invigorate Ithaca’s city center and attract more private investment. Business owners say that losing the convenience of the nearby Seneca Street garage poses challenges for customers. The Green Street Garage adjoins the troubled Asteri Ithaca building, which has the highest police call volume of any location in the City of Ithaca outside of the police department itself, according to IPD’s community dashboard . The proximity of the Green Street garage to the Asteri has made some customers feel unsafe, said Rich Avery, a co-owner of Simeon’s American Bistro. Business owners say customers perceive walking through the Commons to reach restaurants like Simeon’s or Ithaca Ale House as a safety risk, despite recent data from the Ithaca Police Department showing a decrease in crime at the Commons. City Manager Dominick Recckio told Common Council at a Nov. 4 meeting that officials are working with the Department of Public Works, police and the Community Outreach Program to find solutions to downtown safety concerns. For Avery, the city’s plan to level the parking garage and replace it with an apartment building, and potentially more retail, could deal a fatal blow to the downtown business community. “This is going to be the second or last nail in the coffin for downtown Ithaca,” he said. ‘That’s fine and dandy on paper’ The disagreements between city officials and business owners leave the two sides diametrically opposed in their assessment of what should be left standing when the dust settles on the parking debate. Cantelmo said downtown has ample parking availability, but that there is a need for a new housing development. At an Oct. 14 Common Council committee meeting, Recckio said that the city estimates that there are 3,000 parking spaces in downtown garages, on-street public spaces and private parking spaces. He added that the number of housing units downtown has grown by 1,134 over the past seven years. Business owners argue that parking availability and maintaining the Seneca Street garage are needed for customer convenience. “The parking attracts dollars downtown, and that affects tax dollars. It affects whet