Situation:
The University of Toledo, with a student body of over 15,000 people, encompasses 66 surface lots and more than 10,000 parking spaces. The University was seeking to monetizing non-core parking assets on its Academic and Health Science campuses in order to invest proceeds in its endowment funds and to provide capital to invest in parking infrastructure and to provide safe, well-maintained lots for the future.
Solution:
ParkUToledo was formed through a public-private partnership with Diogenes Capital and SP+, and through this long-term concession agreement, the University of Toledo was able to monetize its parking assets and modernize the campus parking operation. In this operation, SP+ is responsible for the day-to-day parking management, customer service and maintenance of campus parking facilities.
Results:
On Oct 7, 2021, the Concession transaction closed and provided the University with an upfront payment of $52 Million and a further $10 Million to be invested immediately in parking system upgrades. As a result, the University was also able to transfer capital maintenance and life-cycle costs over 35 years, outsource operating risk and generate a continued revenue stream from surplus parking cash flows.
Additionally, SP+ created a new website for the University of Toledo parking system called parkutoledo.com, which is a portal for students, faculty, staff and visitors to secure parking passes and provide information.
Highlights:
- Over $50 Million generated in upfront payment
- Revenue generated from surplus parking cash flows
- Transferred capital maintenance and life-cycle costs over 35 years
