Hartford's Parking Deal

[Woonsocketier]

http://www.courant.com/news/opinion/editorials/hc-ed-parking-concession-for-hartford20100909,0,3818124.story

I saw this on courant.com's opinion section today and I think there are quite a few issues that need to be raised. As far as the parking thing is concerned, I believe this is probably a mixed bag. Indiana leased a toll road to an outside company; a deal that proved successful from a fiscal point of view. However, if the goal in Hartford is to reduce parking (or more specifically to build residential and commercial structures on the sea of surface parking lots) then this deal could cause problems. Would the company operating the meters be ok with reducing parking in the city, or would it try to expand the amount?

It all boils down to economics... The company will do what's profitable. If there is excess supply (just by looking at the open spaces during working hours you will see that there is in downtown Hartford) then the company might be inclined to restrict supply to meet demand.

And what's with the "game changer" project? Any word on what it is?

[HartfordTycoon]

I don't know what the game changer project is but am intrigued about what it could possibly be. I feel like the city needs the money and that the monetizing of parking could be a good way to raise capital but whatever the final deal is it must not inhibit the city's ability to redevelop property for higher uses. That would be asinine.

[The Voice of Reason]

I don't know what the game changer project is but am intrigued about what it could possibly be. I feel like the city needs the money and that the monetizing of parking could be a good way to raise capital but whatever the final deal is it must not inhibit the city's ability to redevelop property for higher uses. That would be asinine.

"game changer" piques my interest for sure.

now, I will say this. if we as a city do something like this, we do need to make sure the funds are used for game changers, and not pissed away leaving the city further strapped for cash without the revenue stream.

how do you make game changing happen?

based off the value of Chicagos 36k spaces, Hartford can hope for $192Million for its parking rights. for the 50 or so years.

192 million could finance several apartment buildings on the now vacant surface lots of downtown. If the city were to leverege this money as a grant to developers for building on a few of the best parcels to mitigate risks, Hartford could end up with a greatly improved tax base quite quickly.

think of 10 grants of 19 million a piece for anyone building more than 200 housing units for sale in downtown. you would surely get 10 new buildings as infill that would greatly increase the downtown population as well as the tax base, and would bring more than a billion in private funding into the city.

a $160K valued at 119K, 1,000 SF condo in 266 Pearl pays 2016 in taxes, so if you were to extrapolate that out to 2000 units you would bring in about 4,000,000 a year in new tax revenues, not to mention their car taxes and such. I also think valuations would be a little higher, but regardless. these new apartments would lead to massively increased sales tax recipts in the newly filled retail space/resturants. While there would of course be some increased expenses brought about by these new residents, It would surely be a game changer

but thats just me throwing around some thoughts that mean nothing.

But damn, 100,000 subsidy for each housing unit built seems like a damn lot, so who knows what could happen

[MadVlad]

50 years is a loooong time, they better have an out clause, solid.

[MadVlad]

And the game-changer better be a new arena, it wouldn't surprise me if Howard Baldwin slid his way in, let's do it!!

[zimbu1228]

I really dislike these sell the future for short term gain schemes

[HartfordTycoon]

And the game-changer better be a new arena, it wouldn't surprise me if Howard Baldwin slid his way in, let's do it!!

I agree. If we could get the new arena and build a new historical replica district north of I 84 that would surely be a game changer.

[jcrc]

based off the value of Chicagos 36k spaces, Hartford can hope for $192Million for its parking rights. for the 50 or so years.

I think Hartford will be at a substantial discount from Chicago's number. I heard around $50 million.

[The Voice of Reason]

well, if 200 meeeeeeellllliioooooonnn were to bring back the whale, it would be a game changer, but I think it would not be enough at the same time.

A new Arena with _____ on the otherhand I am totally behind. for example

_____ could include, new housing development that would require a historic feel at street leven on the blocks around the arena...

I do think any infill done in Hartford needs to reuse historic facades from demolitions around the country or at the very least replicate older buildings with historic materials ect

[The Voice of Reason]

OK, so here is some more numbers to better figure out value

Hartford operates 1,645 metered spaces, with the other 4,751 downtown slots spread among the four parking garages and one surface lot.

-HBJ from May

In the Courant today

http://www.courant.com/business/hc-laz-parking-pittsburgh-20100921,0,7072256.story

A group led by LAZ Parking has won the right to operate 12 city-owned garages and 8,700 metered spaces in Pittsburgh, marking one of the largest public operations for the Hartford-based company that is among the nation's biggest parking operators.

LAZ joined with J.P. Morgan Asset Managers and other investors to form Pittsburgh Parking Partners LLC, which on Monday won a 50-year concession for the Steel City's parking rights, with a bid reported at $451.7 million.

those 12 garages contain about 8000 spaces (yeah I looked it up I am that bad. its closer to 7800 really.

Hart-Pitt

1,645-8,700 metered

4,751-7,800 garage

6,500-16,500 Total

$175M-$451M

so using the best terrible math I can, our parking is worth close to $175 Million on a 50 year deal. aparently we are concidering a 70 year deal, so maybe 200 still I dont know

[HartfordTycoon]

OK, so here is some more numbers to better figure out value

Hartford operates 1,645 metered spaces, with the other 4,751 downtown slots spread among the four parking garages and one surface lot.

-HBJ from May

In the Courant today

http://www.courant.com/business/hc-laz-parking-pittsburgh-20100921,0,7072256.story

A group led by LAZ Parking has won the right to operate 12 city-owned garages and 8,700 metered spaces in Pittsburgh, marking one of the largest public operations for the Hartford-based company that is among the nation's biggest parking operators.

LAZ joined with J.P. Morgan Asset Managers and other investors to form Pittsburgh Parking Partners LLC, which on Monday won a 50-year concession for the Steel City's parking rights, with a bid reported at $451.7 million.

those 12 garages contain about 8000 spaces (yeah I looked it up I am that bad. its closer to 7800 really.

Hart-Pitt

1,645-8,700 metered

4,751-7,800 garage

6,500-16,500 Total

$175M-$451M

so using the best terrible math I can, our parking is worth close to $175 Million on a 50 year deal. aparently we are concidering a 70 year deal, so maybe 200 still I dont know

That's a lot of money. If we can get that amount we better see a game changer project and also improved signage and streetscapes all over town. Since it's only one lot that not a big deal regarding future development. Any idea which lot it is? Hartford probably needs to make this deal. We really need the money but it has to be put to good use. At least LAZ is Hartford based so we could help grow a huge local company even more. Don't mess this up Hartford!

[The Voice of Reason]

That's a lot of money. If we can get that amount we better see a game changer project and also improved signage and streetscapes all over town. Since it's only one lot that not a big deal regarding future development. Any idea which lot it is? Hartford probably needs to make this deal. We really need the money but it has to be put to good use. At least LAZ is Hartford based so we could help grow a huge local company even more. Don't mess this up Hartford!

Well, I think they have to pay off the garage debt if they sign this deal, so based on the 2009 budget, that would be 28,392,000

I suspect the city might also need to cover maybe pension shortfall as well (bad idea)

I have no idea what the city shortfalls might be but be sure they will all get a lettle something. I really hope not. I hope we have 150 Million for "The Game Changer"

The HPA web site lists only 5 parking lots, so I guess this is pretty easy

Church street garage

MAT Garage

Morgan St Garage

Library Garage

M&T Surface lot

This is the Abe Giles lot it seems. 1214-1214 Main Street.

http://www.hartford.gov/parking/downloads/mandtlot.pdf

I sure as hell hope the city retain the right to get this lot developed at any time without penalty

227 Spaces is nothing compared to the contract in general, so Its possible

and on the same subject. With Pedro so hard up to knock down Butt Ugly, I would not be surprised to see the "game changer" be on this city owned land

[beerbeer]

I have ZERO confidence the government of the city of Hartford will spend that money in any sane manner. It's like giving a case of whiskey to a drunk. Give 200 million dollars to the city council and waste, fraud, abuse and corruption will multiple like tribbles.

[MadVlad]

I hear Park St needs to be redone again, maybe they'll spend $200 mill on that....

[HartfordTycoon]

I hear Park St needs to be redone again, maybe they'll spend $200 mill on that....

LOL

[Luca Brasi]

Since we are on the topic of parking, I heard about a situation downtown that shows in a nutshell how corrupt the whole parking business is. The LAZ lot that most people park in for City Steam, Bocca Rossa and Room 960 and to a degree Dish - the one on the corner of Talcott and Main - sends their attnedant home at midnight. People who then pull into the lot after the attendant is gone.. and the number is substantial because this lot services bars and club... park without paying. Between 1am and 1:30am, the tow trucks come and anyone without a ticket on their dash gets towed. According to the downtown property owner I know, this happens every night leaving behind very irate people. If this is happening every night, you can do the math and figure out the kind of money being made every month.

Why wouldn't you keep an attendant at the lot until bar closing time when those are the businesses you service? Maybe because its a lot more profitable to tow cars at $150 than charge them $8 to park? This is very disheartening when downtown businesses are struggling to survive and is the type of thing that absolutely kills downtown.

[The Voice of Reason]

Since we are on the topic of parking, I heard about a situation downtown that shows in a nutshell how corrupt the whole parking business is. The LAZ lot that most people park in for City Steam, Bocca Rossa and Room 960 and to a degree Dish - the one on the corner of Talcott and Main - sends their attnedant home at midnight. People who then pull into the lot after the attendant is gone.. and the number is substantial because this lot services bars and club... park without paying. Between 1am and 1:30am, the tow trucks come and anyone without a ticket on their dash gets towed. According to the downtown property owner I know, this happens every night leaving behind very irate people. If this is happening every night, you can do the math and figure out the kind of money being made every month.

Why wouldn't you keep an attendant at the lot until bar closing time when those are the businesses you service? Maybe because its a lot more profitable to tow cars at $150 than charge them $8 to park? This is very disheartening when downtown businesses are struggling to survive and is the type of thing that absolutely kills downtown.

brilliant!

laz bought that land too. wish it got developed back in the 80s

1000 main looked nice

[The Voice of Reason]

apparently 100 million is the plan

http://www.hartfordbusiness.com/news15647.html

and more importantly

In response to several citizens' concerns that the city will squander the upfront payment, Panagore said the panel proposes the balance, after debt is retired, be placed into an irrevocable trust that would have very strict covenants as to how, when and for what purpose the city could tap the principal and interest.

but it will be interesting to see how much is left for that trust.