Eastern Michigan University Parking Concession

Project Details
  • Education
  • Cities
  • Social Infrastructure
Scope

9,709 parking spaces, 1 garage

Schedule

RFQ - May-June 2017, RFP - November 2017, Commercial Close - January 2018, Financial Close and Turnover - April 2018

Upfront Payment

RFQ - May-June 2017, RFP - November 2017, Commercial Close - January 2018, Financial Close and Turnover - April 2018

Wining Bidder

Preston Hollow Capital / LAZ Parking


Property Name
Eastern Michigan University Parking Monetization
Property Location
Ypsilanti, Michigan

Related Projects and News

Eastern Michigan University parking concession models Ohio State parking transaction

"It will bring enhancements to Eastern’s parking operations, including capital investments to upgrade parking lots, and technology enhancements that bring faster, easier and more seamless entry, exit and payment for users. Parking is not our core business, and involving a professional operator with a track record of success will certainly enhance our overall operations."

EMU President James Smith

The Challenge/Objective

Eastern Michigan University, facing financial challenges, was seeking to improve its balance sheet to increase borrowing capacity to invest in academic facilities and  high-demand programs for its students.

Plan of Action

Modeled on the success of Ohio State’s parking monetization in 2013, we developed a plan that would enable Eastern Michigan to obtain a sizable up-front payment in return for a 35-year concession to operate their parking system.

Key activities that led to the project’s success include:

  • Assembled a team of legal and technical advisors to assist the University to evaluate critical financial, operational and policy issues associated with the potential parking concession
  • Developed a fast-track procurement process that attracted global infrastructure investors
  • Worked with the legal team and engineering experts to redraft concession documents and operating procedures to reflect the University’s policy objectives
  • Developed parking rates that created value for the investors and fairness for student and faculty users
  • Obtained three final, competitive, binding bids and selected a finalist approved by the University Trustees
  • Shortened the concession term to 35-year in part to allay concerns from investors about autonomous vehicles
Results

In early 2018, Eastern Michigan University closed the transaction with Provident Resources and LAZ Parking and received $55 million up-front payment

  • Parking operations were seamlessly turned over to LAZ parking over the summer of 2018
  • Significant capital improvements to EMU’s parking system have been made by the concessionaire