In October of 2021, The University of Toledo monetized its parking assets through a long-term concession transaction, in order to:
- Generate an upfront capital payment that can be used to help UToledo achieve its growth targets and advance its strategic priorities.
- Improve the physical condition of the facilities that make up the parking system.
- Provide a better customer experience by outsourcing the operation to an experienced, professional third-party parking operator.
- Improve the operation and management of the system using technology and parking industry best practices.
- Focus on its core mission of educating its students.
The concession transaction provided the University with an upfront payment of $52 million with an additional $10 million to be spent over the first three years of the concession on upgrading the condition of the parking assets.
The University has effectively added $52 million to its endowment funds, transferred capital maintenance & life cycle costs for 35 years and outsourced operating risk, while retaining ownership and ownership rights (including the right to set rates and change policies) and a continuing revenue stream from surplus parking cash flows. The anticipated surplus cash flow over the life of the concession is estimated to be $140 million.
The concession agreement enshrines the University’s rights of ownership and ParkUToledo’s obligations to operate and maintain the parking system and to hand it back to the University at the end of its term in good condition.
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To read a copy of the agreement, click here.