DESMAN was part of the team providing public-private partnership (“P3”) consulting services to the University of Illinois Urbana-Champaign (UIUC). DESMAN’s area of focus for this assignment was the University’s parking system. DESMAN evaluated the physical and financial health of the University’s parking assets and operations and, subsequent developed long-term financial projections for the University’s parking system under a variety of operating and pricing scenarios. UIUC, located in central Illinois, is home to 43,600 graduate and undergraduate students and 11,000 faculty and staff members. The study area for this assignment was the University’s Main Campus, which is situated within the cities of Champaign and Urbana.

DESMAN identified the occupancy of each parking facility, conducted a high-level review of the operations of the University parking system, and identified short and long-term CAPEX needs. This information provided the basis for the development of four long term financial models; Status Quo, Moderate, Aggressive, and P3 Market Driven. The names were derived based on the different parking rates and fine assumptions used in each model. The Status Quo model assumed continued University Operation while the other three assumed privatization of the campus parking system. The models demonstrated that the University could expect to receive upfront payments of between $60 million and $155 million for a 40-year concession. The University is currently evaluating its options.