Ohio State University Parking Facility

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In 2012, the Ohio State University (Ohio State) leased its Columbus campus parking facilities, and management of its daily parking operations, to a private concessionaire as part of an innovative funding strategy. The 50-year agreement generated a $483 million upfront payment that the university has invested in its endowment for scholarships and other initiatives core to Ohio State's academic and research mission. The concessionaire, CampusParc LP, is a specially formed company controlled by QIC, an Australian investment manager. Operations and maintenance are contracted to LAZ Parking, a Connecticut-based parking operator. Over the lease term, CampusParc is responsible for the operation of Ohio State's parking system which comprises approximately 36,600 spaces across the Columbus campus. CampusParc's responsibilities include management of the parking permit system, parking enforcement, customer service, motorist assistance, event parking management and parking facility maintenance. CampusParc collects all operating revenue from the parking facilities (parking permit sales and hourly parking fees). Rates increase by 5.5% per year for the first 10 years and 4% per year or the rate of inflation, whichever is higher, for the remaining 40 years. Net revenue from parking citations is returned to the university after operating expenses are deducted. Ohio State retains the rights to all final policymaking decisions including permit eligibility, rates, space designation and the addition or reduction of available parking, although the university would have to compensate CampusParc if more than 2,200 parking spaces are permanently removed. CampusParc will have invested more than $34.5 million in major facility repair and upgrade projects in the first seven years of the agreement, including: Faster entry and exit lane equipment GarageTracker that makes garage occupancy levels available on smartphones Smartphone-enabled and pay-by-plate payment options Software to better analyze parking trends and a customer feedback program LED or induction lighting upgrades in all garages, including installation of solar panel equipped pay-and-display parking meters Preventative maintenance program to increase service life and minimize downtime of mechanical equipment Through fiscal year 2019, Ohio State estimates the total value created in its endowment fund from the $483 million upfront payment to be $242 million. Over the 50-year term, Ohio State estimates the value generation to be $3.1 billion. The endowment distributions are being used for student scholarships, hiring new tenure-track faculty, and support for capital projects in the Arts District. Funding has also gone to supporting the Campus Area Bus Service and other initiatives that provide sustainable transportation options. Through fiscal year 2019, $46.8 million in asset-recycling value generated from the lease payment has been invested these transportation services.

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