BETHLEHEM, Pa. — After nearly two years of construction, the new Walnut Street Garage opened Thursday between Main and New streets, marking a milestone in Bethlehem’s downtown revitalization efforts.
Dozens gathered outside the entrance of the 517-space, $27 million structure for its ribbon cutting. Tammy Wendling, senior vice president of Bethlehem initiatives for the Greater Lehigh Valley Chamber of Commerce, said partners were “thrilled to celebrate this incredible new addition and vibrancy to our downtown.”
“You usually don’t get this kind of crowd when you open up a parking garage,” Mayor J. William Reynolds joked.
Reynolds said replacing the former 500-foot-long structure with a more compact garage just east of Main Street will help bring more foot traffic to nearby businesses. The new garage opened on time and under budget, he said, and includes three ground-level retail spaces expected to further energize the area.
Two tenants — the Coalition for Appropriate Transportation and Oasis: Community Wellbeing Hub — are already set to move in. The redesign also created two-way access along West Walnut Street.

Reynolds noted the mix of residents, business owners, contractors, elected leaders and even some early critics who attended the opening. The project’s design approval process stretched over many months, with some meetings running late into the night.
The old garage, demolished early last year, offered 770 spaces but was deteriorating and underutilized, according to Bethlehem Parking Authority Executive Director Steven Fernstrom. The former structure was about twice the length and roughly 8 feet shorter than the replacement.
Fernstrom said building a new garage with a 60- to 80-year lifespan was ultimately as cost-effective as trying to maintain the aging facility. A comprehensive parking study showed the city would benefit from a modern structure and opportunities for additional development on the block.
“That allowed us to rightsize this parking structure,” Fernstrom said. “It allows the Bethlehem Parking Authority to be financially healthy, and it also allows the city to potentially add apartments and housing versus the empty parking spaces that plagued this block for decades.”
A proposed seven-story, 108-unit mixed-use apartment building for the adjacent lot is currently under review by the city’s Historic Architectural Review Board.
Progress on the new garage briefly stalled in February 2024 when a beam fell onto a neighboring condominium during demolition. No injuries were reported, and the unit sustained minor roof damage.
This year, the Parking Authority said it has invested more than $600,000 into streetlamp upgrades and holiday beautification efforts across Bethlehem’s two downtowns, including new lights, red bows, garland and Bethlehem Stars.




