ITHACA, NY (607NewsNow) – The City of Ithaca has begun the formal redevelopment process of the Seneca Street Parking Garage.

The Common Council authorized an option agreement last week by an 8-1 vote that could see the property transferred to the Ithaca Urban Renewal Agency (IURA) for a future project.

Alderperson Margaret Fabrizio was the lone opposing vote, citing the need for an informed, inclusive, and transparent process before coming to any conclusions about what to do with the garage and property. The 53-year-old structure was permanently closed in May 2026 due to deterioration.

Lawmakers established goals for any potential future project, calling for a taxable residential development with active ground-floor uses and a full restoration of the TCAT bus shelter. Any eventual property transfer would be subject to council approval.

The IURA will eventually look to solicit development proposals and negotiate redevelopment terms for future consideration.

The city is now in the early stages of discussing demolition of the structure.

“We know that the city is not going to build a municipal structure there,” said Mayor Robert Cantelmo. “We know that the construction and demo will get more expensive as time goes on, and we also know that this parcel being put back on the tax rolls would have a positive impact on the pocketbooks of everybody who does live downtown.”

Acting City Manager Dominick Recckio said demolition is the best course for public safety and making the property easier to sell.

“The site is more desirable to a developer if it is a prepared lot,” said Recckio. “I see that for us, particularly, as a cash consideration in terms of sale price for that site. I’m very interested in making sure that the city gets, you know, whatever resources we can from the sale of a very valuable property.”

Recckio added that the city is working on a contract to take down the garage, and while he doesn’t have a definitive price tag yet, he anticipates it will cost several million dollars.

Once demolition is complete, the city is considering making the site a surface parking lot until it’s redeveloped.

You can watch the full Common Council meeting here.