It has to do with finance. I met with a couple of investment bankers this week and frankly I think they may be on to something. Its a way for virtually any organization to finance a new parking structure. Or get some cash out of an existing one. Sell your parking facility to someone and cash out.
This will work for cities, colleges, hospitals, and private entities.
Lets say you are a hospital and need a new garage, but don’t have any funding. Ask for proposals and you will have suitors coming out of the woodwork. Of course, don’t get greedy, the deal has to work for everyone.
As one supplier of money and expertise told me "Look, if you have a hospital in the middle of a neighborhood and the only user of the garage is the hospital, and you can’t charge doctors, nurses, patients or visitors, then it won’t work. However a central city hospital across the street from a theater complex might be able to get themselves a new garage and make some money, too.
I wouldn’t try to analyze the situation myself, but call in some help. If you have a going garage and need funds for the new wing on city hall, maybe this is a way to get it. However, you won’t get a very good deal if you try to restrict what the new owners are going to do. If every time they want to raise rates or try some kind of marketing ploy you interject yourself into the conversation, it won’t work.
I think we are going to be hearing a lot more about this type of creative financing at all levels, public and private. There’s a lot of money out there that wants to be invested. Parking is a good place.