DUE DILIGENCE FOR THE PRIVATIZATION OF THE OHIO STATE UNIVERSITY PARKING SYSTEM
DESMAN was retained by The Ohio State University (OSU) to perform a financial review of the OSU Parking System and a condition assessment of the System’s parking assets. This included an analysis of OSU’s 158 metered on-street spaces, 23,433 surface lot spaces and 16 parking garages containing 13,000 spaces; a total of 36,591 spaces. Field surveys were performed at each of the facilities to confirm parking space inventory and to determine peak occupancy. DESMAN also performed condition assessment surveys to document the current physical condition of each of the 16 garages and the numerous surface parking lots. Based on the condition assessment surveys, a 50-year capital repair and maintenance budget was developed for each of the structured parking facilities. After a thorough review of the historical financials of the Parking System, DESMAN was able to segregate the parking-related revenues and expenses from those associated with other University functions (shuttle service, fleet management, etc.). DESMAN used the historical financials, the field occupancy survey results and the capital repair and maintenance budget projections to develop a 50-year financial performance model for the System. The analysis also considered the potential effects of future rate increases, future growth in student and faculty population and changing market conditions (i.e. modes of transportation, future development on and near campus, economic factors, etc). The financial model projected the net revenue, net operating expenses, capital expenses, net operating income and the free cash flow of the Parking System. The financial model was used as a baseline for establishing the value of the System to potential Concessionaires. DESMAN continues to advise the Concessionaire with financial modeling.