Frustration in Funding for Municipalities

The current difficulty in the bond markets is causing much
frustration in cities who are trying to get parking construction moving. Fully
designed and approved projects are ‘on hold’ due to lack of funding
availability.

My sources tell me that there is tons of money out there but
fear is keeping people on the sidelines. The same people note that if garage construction
slows for cities, focus on “on street” collections and enforcement will heat
up.

My guess is that municipalities that simply ‘decided’ to
build a garage because ‘there wasn’t enough parking’ are now having to be
certain that the financial aspects of the new garages are firm and that cost
justifications work, just as they have had to in the private sector.

My Annapolis blog below is a good example. We are going to
see on street rates increase so cars will be attracted to the lower priced off
street lots and garages. New facilities will have to be justified based on
higher on street rates, which will go hand in hand with new on street equipment
and enforcement techniques.

Frightened investors are going to have to be drawn back to
the market with good business plans and solid bottom lines, particularly in
public sector projects that were ‘solid’ just a few short months ago.

Although painful, the current realignment away from having
taxes fund some public projects toward a sound business (read that profitable)
model, will, in the long term, be a good thing. 
This will most likely be true also for higher ed, airports, hospitals,
and other public sector entities.

JVH

JVH