Scheme to sell city parking lots

[AlexPKeaton]

A chunk of cash to put in the city coffers does not qualify as a public benefit. What we are talking about has no public benefit, it is merely a land deal.

[Rizzo]

Here's an update:

http://www.mlive.com/newslogs/grpress/inde..._04.html#248710

[GRDadof3]

Some strongly worded letters from the DDA, Parking Commission, Rockford Construction and Development, Grubb & Ellis, and the Grand Rapids Building Authority all essentially coming out against investigating this proposal any further are on tap for the April 24th City Commission meeting. The main issue brought up by private "stakeholders" downtown is lack of "certainty" regarding parking rates and availability, that might greatly hamper further growth downtown.

City Commission Agenda - Starting on Page 140

[quoteme3]

On page 171 it breaks down that there are eight (8) parking attendants. There are nine (9) holding administrative or administrative support positions.

Also, is there anybody else here that cringes when the word "profit" and "business" are used in conjunction with government? At least if they use the word "surplus" it would make me feel more like I am the recipient of a public service.

[GRDadof3]

Looks like the city commission said "no"

but apparently want more information out of the parking commission on how it can get more money out of the system.

[barefoot]

Why is ONE developer being championed by a member of the city commission?

Why sell an asset that produces cash flow, supports downtown business and events, and could be considered to be a "core function" of government as much as roads are?

It's not like the developer wants to buy the lots because there is a better use that the lots have displaced - they just want to buy the asset.

I have no problem pulling together the facts on this, looking at contracting for the operations, etc. But walking in with one developer seems to have distracted from the fundemental issue.

[jbr12]

Had to dig this one up upon finding this article...

http://online.wsj.com/article/SB122826399442774223.html

Chicago Banks on Private Parking

City Raises More Cash From Public Assets With Tentative $1.16 Billion Deal for Meters

CHICAGO -- The city tentatively accepted a $1.16 billion bid Tuesday for the rights to manage its parking-meter system, handing a Morgan Stanley-backed group a concession that continues the city's strategy of privatizing its public assets.

Final approval of the deal, which will be decided by a city council vote on Thursday, would establish the first private concession for a publicly owned U.S. parking system, according to Mayor Richard M. Daley. Similar deals over the past three years have seen Chicago pocket nearly $5 billion from leasing the Chicago Skyway, downtown parking garages and Midway Airport.

. . .

The winning bid was submitted by Chicago Parking Meters LLC, a group that includes Morgan Stanley and LAZ Parking. The city plans to set aside $400 million of the money for the long term; $325 million will help balance the budget through 2012; $100 million will go to social programs; and $324 million will be used to stabilize the city's finances until the economy improves.

. . .

The city has taken privatization steps to balance its budget, which for 2009 had included a projected $469 million shortfall. Even after the meter deal is closed, Chicago projects annual deficits of $200 million until 2012.

[fotoman311]

Had to dig this one up upon finding this article...

http://online.wsj.com/article/SB122826399442774223.html

[CK1]

I think that selling off assets is a dangerous move...if a government want's to regain control of those assets at a later date, it will likely cost them dearly to do so.

Does anyone know if there is still talk of GR selling off it's parking lots en masse? I honestly hope that it's a dead issue...

[jbr12]

Another municipality selling their parking lots to raise capital...

http://www.post-gazette.com/pg/09016/942243-53.stm

Ravenstahl wants to turn parking into pensions

City checks on privatizing garages to bolster lax fund

Turn parking garages into pension payments.

That's what Pittsburgh Mayor Luke Ravenstahl wants to do, by leasing the Pittsburgh Parking Authority's 11 Downtown parking facilities -- and maybe even its neighborhood lots and meters -- to a private operator in return for hundreds of millions of dollars that would shore up the woefully inadequate pension fund.

"We're going to need some sort of influx of cash," the mayor said of the fund, which at last count contained just $261 million of the $899 million it should ideally hold. "I have been approached numerous times about the value of these assets," he said of the parking garages, and now he wants to test the market.

[CK1]

Another municipality selling their parking lots to raise capital...

http://www.post-gazette.com/pg/09016/942243-53.stm

[AlexPKeaton]

Such a bad idea. Short term band-aid for a broken leg that needs time to heal.

If this idea is ever raised in GR again, I hope that the true long-term economic cost is provided so that residents of the city can see what is being given up. I'd almost demand a vote for being able to sell this type of asset, even though no such vote is mandatory.