The St. Joseph City Council has endorsed a proposed $16-million project to replace a deficient parking garage in downtown.

According to City Manager Bruce Woody the current garage at 8th and Felix is structurally deficient. Vehicles are not allowed on the top floor due to the deficiency. The proposal would replace it with a brick building that combines parking and retail space.

He said the current garage produces no tax revenue, but the new one would.

“It would immediately from day one also provide a new flow of taxes to the taxing districts including the school district, the city, the county and the smaller taxing districts as well, the museum, the library, things like that,” Woody said.

The location of the garage is within the Tax Increment Financing District approved by the City Council in 2009, so part of the tax revenue would help pay for infrastructure.

Woody said Mosaic Life Care would pay $13-million of the cost, the city would pay $3-million.

150 of the 300 parking spaces would be dedicated to Mosaic employees in the renovated German-American building one block away.

A council work session gave the project a 9-0 endorsement this week.