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Proposal

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Submitted By speierl01
Words 1469
Pages 6
To: Mayor Byron Brown
From: Laura Speier
Date: 23 March, 2013
Subject: Parking Modernization Plan for Buffalo

Terms for Proposal

The Greater Buffalo Development Authority - Lessee and owner proposes a more efficient Parking Modernization Plan for Buffalo. This will be the solution to the problems we have with parking in Buffalo. The public partnered with the city, so the parking system remains in the public realm. The on-street parking will be operated by a contractor - in this case, Meter men, who operates 30 parking systems across the country. Off-street parking will continue to work with buffalo’s facilities will be operated by a contractor, Buffalo’s Finest Parking. The parking has become more and more a problem and we suggest that it is done so that we can service the public’s parking issues. We recommend that you approve the proposal so we can get started before the winter since there are many areas that need to be addressed.

Over $20 million in initial capital improvements for meters and Stanford Parking garage * Construct Stanford Parking garage * Immediate on-street improvements * Overall capital investment estimated at $98 million over term of the lease * Term: 30 years on-street, 50 years off-street * Agreement with the City contains operating standards * Ability to alter provisions over time, if necessary, through the Advisory Committee * The City retains the ability to terminate the agreement if the operating standards are not substantially met * Upgraded parking system returns to the City at the end of the lease term * $92 million upfront payment entirely financed with bonds issued by the City of Buffalo * City will receive an annual installment payment estimated at $3 million initially, and expected to grow over time

Parking key resource to support: Why Parking?

* Economic and business growth and retention * Special events and tourism * Residential vibrancy

Proposed upgrades to Buffalo’s parking system would: Better Convenience for the people

This will provide information about rates and hours, events, and closures to motorist’s online, via cell phone, or social media. Also provide a way finding apps to customers to help them find available spaces for parking. It will include an use easy-to-understand messaging system. The hours of operation are programmed so customers do not mistakenly pay a meter. It will accept coins, credit and debit cards, and phone payments. It will alert customers via text when their phone payment is about to expire. (examples are shown below).

Rates, Hours, Enforcement

The City has set rates, hours and enforcement. This is not up to the operator. This new technology must be installed before any rates are incrementally increased. Downtown meter rates will stay at $2/hour initially. Then rates will increase by 25¢ approximately every 3 years. Neighborhood meter rates increase to 75¢/hour once meters are upgraded with new technology. After that, rates would only go up by 25¢-increments. Based on the agreement, it would take about 6 years for those 25¢ increases to occur. Rates are capped. Downtown meters are in effect 8 a.m. to 9 p.m. Neighborhood meters are in effect 7 a.m. to 9 p.m. The "First 10 minutes free" remains at downtown meters where it supports business growth. Holidays and Sundays remain free at meters. Operator can only boot cars in cases of extreme non-compliance (at least 3 unpaid tickets). * Booting technology would allow car to be freed after fines are paid in full (could be on the spot).

Why Is The Administration Proposing This Partnership?
This is an Economic Development Plan.

Restructuring our management of parking allows dollars to come to the City's general fund in an upfront payment. This can be leveraged to create jobs and business growth now to provide ongoing tax revenue for the next 30 years.

Parking Modernization: Who's Who
Local Control, World-Class Operations Key Players

* Greater Buffalo Development Authority - Lessee and owner * LAS - Asset manager * Meter men- Day-to-day operator of on-street parking * Buffalo’s Finest - Day-to-day operator of off-street parking * First Niagara - Underwriter & Capital Provider

Greater Buffalo Development Authority
They have issued over $540 million in revenue bonds. Owns and oversees the management of over 8,600 structural parking spaces

Role: Lessee and Owner * Review and approve operating and capital budget * Contract with asset manager; monitor operators * Review and sign trust disbursements * Maintain system transparency * Communicate to stakeholders

LAS Capital Management, L.P.
Global provider of real estate investment and asset management services actively managing portfolios on behalf of 320 U.S. public and private clients, including 51 public US pension plans

Role: Asset Manager * Develop intermediate and long-term strategic plans * Oversight of parking operators * Recommend annual operating and capital budgets * Develop risk management policies and procedures * Engage independent engineers and consultants * Manage long-term capital plan

Meter men
$22 billion Global company offering World Class services in parking operations, fee collection, technology innovation and customer service. Actively manages 36,000 on-street spaces.
They have been the parking market leader for over 30 years and supporting 30 of the largest U.S. cities.

Role: Day-to-Day Operator of On-Street Parking * Operating partner for on-street system * Day-to-day property level responsibilities including: * Meter installments, removal and repair * Coin collection and counting * Violations processing/Collections * Implementation and operation of new technologies

Buffalo’s Finest
Manages and operates over 60,000 parking spaces in 115 locations in 13 states and Washington, D.C., providing superior service. This maintains contracts involving a broad range of operating environments that include municipalities, events, office buildings, retail, and on street meter enforcement.

Role: Day-to-Day Operating Off-Street Parking * Operating Partner off-street parking (garages and lots) * Facility and equipment manager

First Niagara
Global financial services firm with more than 2,200 professionals located in more than 25 offices in ten countries. Delivers diversified financial services to a changing marketplace. The firm's investments span $170 billion of assets under management.

How Would This Happen? An Orderly Transition * Install new, credit card-accepting technology before any neighborhood rate increases or expansion in hours * Thorough notification and communication to stakeholders regarding changes * Technology demonstrations * Parking ambassadors * Press conferences and releases * Social media and web postings * Clear signage * Fliers for businesses * Customer support * Quickly implement pay-by-phone program citywide * Install sensors in various areas to bring way finding tools to customers

Goals of Parking Modernization * Increase Value of Parking System * Improve Financial Flexibility of Parking Revenue * Partner with World Class Operator * Choose Partners with Technical Expertise * Maintain Competitive Parking Rates * Enhance Customer Service, Safety, and Security * Ensure Construction of the Stanford Parking Garage * Retain Public Oversight * Support Business Growth * Increase efficiency & innovation to ACCELERATE GROWTH

How Would The City Use The Lump-Sum Payment?

Under the proposed deal, the City would receive an upfront $92 million payment, in addition to ongoing payments.

The upfront payment could be used to jumpstart the I-90 to the 290 Interchange. A key access point to the center of the city and the neighborhoods of Buffalo, University, Cheektowaga, and Amherst, this project will bring 5,900-7,300 more jobs to the City; as well generate $33 million in additional revenue to the City for services by opening up access to this key job center. This is a $20 million city investment now for a long-term revenue stream. The City of Buffalo will be asking the State of New York for $40 million to make this happen so construction could begin by 2014. Add $4 million to the continuation of Glen Falls Park. As the crowds head to the natural resort for the 2015 fishing season, we want our Glen Falls park to be at its best. This money would help build the Main Street Fountain, the Carousel and Carousel building just in time for us to take the national stage. Convert the Main Place Mall into parking structure with first floor retail and the Stanford Garage into 30-story mixed use residential high rise with a first floor grocery store. This would also have 300 luxury apartments as well as parking to support the grocery to make it most convenient for downtown workers and residents alike. This $12 million investment from the parking funds would leverage $82 million in private investment.
Further the City’s Buffalo Bicycle Transportation Plan by acquiring the Line Right-of-Way for the development of a bike trail. This would positively affect the residential, commercial, educational and recreational quality of life in the neighborhoods of Buffalo, Amherst, Cheektowaga and Lackawanna. Add $6.3 million to the City’s reserve account. This will help to bring the City’s savings in this account to its goal of 8% -- a move our bonding agencies will view favorably. Help balance the 2014 and 2015 budgets against deficits with $25.8 and $20.9 million respectively.

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