Financing Parking Facilities, Softcover reprint of the original 1st ed. 1991

The level of knowledge concerning the financing of parking facilities is high among private parking operators and owners. Internal growth and new projects would not occur, if parking companies were not thoroughly familiar with the ability to finance new projects and acquisitions, at advantageous terms. Understandably, each private parking company jealously guards not only its source of borrowed or equity funds but also the methodology of the financing used. The vast majority of new parking projects, however, are planned, financed, and owned by developers, industrial companies, and muni­ cipalities. While each of these categories of parking facility owners have knowledge of their respective methods and sources of financing for general corporate or municipal purposes, the level of expertise concerning specifically the financing of parking facilities is sadly lacking. If for no other reason, both private corporations and munici­ palities frequently include the cost of a new parking project as part of an overall financing package. Developers usually include the cost of required parking facilities within the overall project development financing. Municipalities frequently include the cost of a new parking garage with the financing of new parks or street improvements. With the cost of financing new multilevel parking garages ranging as high as $30,000 per space, many private and municipal owners are realizing that to provide adequate parking is an expensive necessity. Developers now realize that providing the necessary parking for mixed-use projects is a significant portion of their total project costs.

1. The Parking Business.- Internal Factors.- External Influences.- Stand-Alone Parking Projects.- 2. Sources of Funding.- Tax-Exempt Funding Sources.- Taxable Funding Sources.- Private Placement vs. Public Offering.- Disclosure.- 3. The Cost of Money.- Costs of Issuance.- Cost of Borrowing.- Market Value.- 4. 1986 Tax Law.- Tax-Exempt Financing.- General Tax-Exempt Criteria.- The Future of Tax-Exempt Financing.- Rebate Regulations.- Taxable Private Financing.- 5. Security for Parking Financing.- Providing for Bond Security.- Mortgage of the Facility.- Provisions in a Lease Agreement.- Credit Enhancement.- 6. Taxable Financing Structures.- Conventional Debt/Equity.- Selecting the Best Alternative.- Participating Mortgages.- Participating Loans Ease Acquisitions.- Interim Financing.- 7. Tax-Exempt Financing Structures.- General Obligation Bonds.- Special Assessment Bonds.- Tax Increment Bonds.- Parking Revenue Bonds.- Lease Revenue Bonds.- Economic Development Authority (EDA) Bonds.- Construction Risk.- Depreciation.- Annual Appropriation.- Indemnification.- Interim Financing.- Municipal Bond Defaults.- 8. Rate Structures for Tax-Exempt Obligations.- Variable Rate Obligations.- Comparisons of Variable Rate Obligations and Fixed Rate Notes.- 9. The Impact of Ratings on Tax-Exempt Parking Bonds.- Credit Ratings.- The Rating Agencies.- Rating Analysis.- Problems With Parking Revenue Bonds.- Ratings vs. Interest Rate.- Investor Use of Bond Ratings.- Summary.- 10. Parking Feasibility Studies.- Site Analysis.- Project Feasibility.- Private Developer Financing.- Public Parking Financing.- The Feasibility Report.- 11. Estimating Construction Disbursements.- Project Delivery Methods.- Construction Draw-Down Schedule.- 12. Sizing a Municipal Parking Bond issue.- Assumptions.- Calculations.- 13. The Role of the Parking Consultant.- Client Needs.- Selecting a Parking Consultant.- The Work Phase.- The Team Approach.- Engineer or Architect.- Summary.- 14. The Role of the Financial Professional.- The Financial Advisor.- The Investment Banker.- The Merchant Banker.- The Mortgage Broker.- The Venture Capital Firm.- Fees.- Bibliography of Source Material.- Appendices.- 1. Glossary.- 2. Summary of Private Domestic Holdings.- 3. Asset Holdings of Selected Securities.- 4. Holdings of Tax-Free Investments.- 5. Trends in the Holdings of Municipal Securities.- 6. Holders of Long-Term Municipal Debt: 1978–1990.- 7. Purposes of Municipal Financing.- 8. Certificates of Participation Transaction Structure.- 9. Lease Revenue Bond Transaction Structure.- 10. Comparative Interest Rates.- 11. Kenny Index, Historical Rates.- 12. Legal Text of Security and Exchange Commission’s Municipal Bond Disclosure Rule.- 13. Municipal Leasing, a Fifty-State Survey.- 14. Range of Fees of Financial Professionals.