Scranton Parking Concession, Scranton, Pennsylvania

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The National Development Council (NDC) announced a parking system transaction with the City of Scranton and Scranton Parking Authority, effective August 30, 2016. Through its public-private partnership affiliate, the Housing and Economic Development Corporation (HEDC), NDC completed negotiations on this transaction that involved six parking structures and all on-street parking meters in downtown Scranton, Pennsylvania. The negotiated price is $32 million and is paid upfront to the City by the HEDC affiliate, Community Development Properties Scranton, Inc (CDPS). It will be paid with the proceeds of a $38 million, 40-year, a tax-exempt bond issued on behalf of CDPS by the Scranton-Lackawanna Health and Welfare Authority and sold by Citibank. The balance will fund capital repairs and transaction costs. All proceeds over operating expenses, debt service, and capital repairs and replacement will be returned to the City in the form of grants. Per the agreement, CDPS was responsible for the lease, operation, maintenance, and capital repair of the public parking system's entirety for 45 years. The City chose NDC in an RFP process initiated in 2015 seeking a private entity to restructure its parking assets. NDC holds a nonprofit status, which ensures that public assets are kept in the public realm while reducing costs that could result from a for-profit P3 model. The resulting transaction specifies that NDC, thru its HEDC affiliate, CDPS, is entering into a lease-concession agreement on six parking structures, four leased from City and two from a private owner, Steamtown 300, LLC. CDPS has hired ABM Parking to manage all six structures, including five parking garages containing 2659 spaces and approximately 36,000 ft2 of retail and 1479 metered parking spaces. ABM Parking was entrusted to operate the meters, garages, and 500 parking spaces at a mall as City monthly parking spaces. When all the debt has been paid, ownership of the parking system will return to the City. The Scranton Parking Authority will remain active, as it is not being sold, only leased, and will retain the aforementioned assets' ownership.

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