Type: Privatization
Project Name: Privatization of the Harrisburg On-Street and Off-Street Parking System
City: Harrisburg
State: PA
Client: LAZ Parking, Ltd. / Royal Bank of Scottland

Description: Working with the Royal Bank of Scotland and LAZ Parking, DESMAN provided due diligence efforts and technical advisory services in support of Royal Bank of Scotland’s bid for the 75 year lease concession for the Central Business District (CBD) public parking system in Harrisburg, Pennsylvania. The Concession parking system includes 7.733 off-street and 1.250 on-street spaces, which consists of 9 parking garages, 3 parking lots and all on-street meters in the CBD and surrounding areas. A 75-year financial model was prepared projecting the net revenue, net operating expenses, capital expenses, net operating income and the free cash flow of the Concession parking system. The analysis considered the implementation of pay-and-display meters, rate increases, future growth in parking demand, improvements to revenue collections, increased operating times, violation fees and improvements to revenue collections. In making our assumptions a review of market area conditions related to population, employment, economic factors, modes of transportation to the CBD, and fluctuations in gas prices were reported. Overall, we analyzed a multitude of factors related to parking demand, revenue growth and future expenses in developing sound financial projections. A review of the Sponsor’s financial model and assumptions was also performed.