Caption: Eastern Michigan University's new parking agreement will help fund needed capital improvements.
Source: Credit to Eastern Michigan University (EMU)
| Project Name | Eastern Michigan University (EMU) Parking Concession, Michigan |
|---|---|
| Location | Ypsilanti, Michigan |
| Project Sponsor / Borrower | Eastern Michigan University (EMU) |
| Program Areas |
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| Value Capture Techniques | Asset Recycling |
| Mode | Other: Parking |
| Description | EMU, which has approximately 21,000 students, has more than 9,700 parking spaces spread over two garages, 57 parking lots, 2 parking garages, and 179 metered spaces on its Ypsilanti campus. The Eastern Michigan University (EMU) has reached financial close on the $ 59 million monetization of its parking system on April 26, 2018. Under the terms of the transaction, Preston Hollow Capital paid EMU $ 55 million upfront in exchange for the transfer of all university parking operations. The Dallas-based firm also committed more than $ 4 million in capital expenditures to enhance the parking system during the first two years of the agreement. LAZ Parking will be the operator of the 35-year concession. PFM Financial Advisors (financial advisor), Desman, Inc. (Parking Consultants) and Dickinson Wright (legal) advised the Preston Hollow/LAZ Parking team on its bid. The agreement is for operation and management of the EMU parking system. It is not a lease or a conveyance of any other interests in University's parking system. Eastern will retain naming rates for the parking system and facilities and will continue to staff a Parking Violations Bureau as part of its enforcement system. Under the agreement, EMU will transfer all parking operations in exchange for the upfront payment, which would help fund long-term investments in academic facilities and program. Parking revenues generated at athletic events, such as football games at Rynearson Stadium and the EMU Convocation Center, are included in the agreement. The concession agreement sets an annual 5% cap on parking rate increases for the first five years. Valdes points out annual parking increases at EMU have increased by an average 17% per year since 2010. In the first five years of the concession, parking rates may not increase more than 5% in any given year. After that term, the maximum annual rate increase will be either 4% or the increase in the Consumer Price Index, whichever is greater. |
| Cost | $59 million
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| Funding Sources |
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| Project Delivery / Contract Method | Asset Recycling: Parking 35-year Concession |
| Private Partner | Preston Hollow/LAZ Parking Team |
| Project Advisors / Consultants | EMU:
Concessionaire
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| Lenders | N/A |
| Duration / Status |
35-year Concession |
| Financial Status / Financial Performance | Financial close on April 26, 2018 |
| Innovations |
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| Related Links / Articles |
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| Contacts | Geoff Larcom, Executive Director of Media Relations at Eastern Michigan University |
