The City of Angels is looking to lease out its parking lots and meters. Following on Chicago Mayor Daley’s $500 million plus deal leasing four garages and $1.15 billion deal leasing 36,000 parking meters, LA mayor Villaregosa is looking to generate cash by doing the same. Fair Enough.
My only question is how much will LA leave on the table. I have spoken to a number of parking professionals who have audited LA city garages and it seems there is a lot of money not being collected now. Will the city use existing revenues as a guide, or go out for expert opinions as to what the garages are really worth.
Although citation writing is fairly good in LA, my guess is that less than 10% of all violations are ever ticketed. That being the case, will the successful bidder be able to step up enforcement.
I’m sure the Morgan Stanley/Laz Parking team will argue that if they write more tickets, the scofflaw rate will go down and thus revenue will follow.
Will the city realize that in infusion of a new management team and most likely equipment that didn’t come over on the Mayflower can make a huge difference in revenue generation, particularly when the revenue is theirs.
I have felt that Chicago left some money on the table, particularly with the four garage deal. I wonder if the folks working with hizzonner in LA will do the same.
Selling (leasing) assets to pay short term bills is not a good policy. Hey Mr. mayor. Why not spend less and collect the money due you now (like the parking tax and violation payments) to generate income. Milk the cow, don’t sell it.