The city of Huntsville announced plans Thursday to build a 1,000-space parking garage adjacent to the Orion Amphitheater that will bring more parking closer to the venue.

The four-story garage will be built along Amphitheater Drive at Corporate Drive on the south end of the lot occupied by Top of Alabama Council of Governments (TARCOG), which will be relocating about three blocks to the east in the MidCity District.

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The city council approved purchasing the 3.56-acre lot from TARCOG for $8 million. And as part of the purchase and donation agreement, the city agreed to donate the northern acre of the lot to MidCity for retail development in exchange for a one-acre lot on Corporate Drive in MidCity that will be the new home for TARCOG.

Shane Davis, the city’s director of urban and economic development, told the council that a parking structure has been planned for the site for about two years. A city-owned surface parking lot across Corporate Drive from the planned structure has been the primary parking area for amphitheater events with two other parking areas in MidCity available as well.

Adding a retail component that did not already exist made the project more appealing, Davis said. The city, for its parking structure, does not need the full 3.56 acres it is acquiring from TARCOG. So, the remaining unused acre being returned to MidCity will allow for retail development, which will funnel tax money back to the city, Davis said.

“We could give that up and still build our parking garage and create a tax base with restaurants and things that would eventually pay us back over time at least for this real estate purchase so that it lessens the burden of standing up this parking garage structure,” Davis said.

The city will also generate money from parking at the structure, Davis said. The parking plans also call for a small surface lot alongside the parking garage that will likely be used for handicapped parking.

Davis said the parking garage will have at least 1,000 spaces and could have as many as 1,200.

The timeline for the project begins with TARCOG building its new building on its one-acre lot on Corporate Drive. Michelle Jordan, executive director of TARCOG, said construction is expected to take about 14 months once it begins but designs are still being finalized. Davis said part of the project is to ensure TARCOG does not have any down time with the transition.