Metro has canceled a request for proposals to privatize its parking lots. Documents related to the procurement, dated Thursday, say that Metro must re-evaluate the requirements. When Metro published the initial formal request in September, it hoped to find a way to give a private company the responsibility for maintenance and upgrades in exchange for the rights to collect parking fees. General Manager Paul Wiedefeld included privatizing parking on his list of potential management changes for Metro back in March. Concerns about the proposal included whether there could be a conflict between maximizing parking revenue and maximizing the number of people who take the train rather than joining D.C. area traffic jams.
The Deal That Could Hurt D.C. For 50 Years
Source: Donald Cohen, Huffington Post, September 15, 2016
Public transit in Washington, D.C., is in rough shape. After years of safety issues, including several train collisions, the agency in charge, the Washington Metro Area Transit Authority (WMATA), is proposing to cut train service hours. But another proposal may be even more troubling. Two weeks ago, WMATA began taking bids from private companies to operate its parking facilities. In exchange for a big up-front payment to the agency, the winning company would collect fees from people parked at train stations for the next 50 years. … It discourages public transit. In order for the private company to make a profit, parking rates will have to go up — as much as 3% a year, according to WMATA. If it costs more money to park and ride the train, people may look for other ways into the city. We lose control of assets we own. In a similar 75-year deal, Chicago handed over its parking meters in 2008 to banking giant Morgan Stanley for a one-time $1.2 billion payment. But that’s not all it handed over. The city is penalized if they do anything that cuts into Morgan Stanley’s profit, like adding bus or bike lanes. … It’s short-term thinking. The parking facilities currently pull in nearly $50 million a year for WMATA. Privatization would send that money—and more—to a private company instead of the public. In Chicago, Morgan Stanley is on pace to make back its $1.2 billion upfront payment by 2020, with more than 60 years of meter money still to come. …
Metro Seeking Private Contractor to Manage Its Parking Garages; Prices Could Go Up
Source: Scott MacFarlane, NBC Washington, September 3, 2016
Metrorail is preparing to hand over responsibility of its lucrative parking garages to a private contractor, the News4 I-Team has learned. WMATA currently manages 26 parking garages and 30 parking lots among its stations in D.C., Virginia and Maryland. Now the agency is seeking bids from companies interested in operating, financing and maintaining the transit system’s parking system. … While WMATA would be giving up the bulk of its parking revenue, the contract would grant money to WMATA. While the amount is unknown, it could exceed WMATA’s current parking revenues. In its proposal to would-be contractors, WMATA suggests the price of “base parking fees” increase 3 percent each year for the duration of the deal. The agency said it would also consider expanding the hours during which parking is charged, to include holidays and late nights. … The bids from private contractors are due by Oct. 28. WMATA is seeking a 50-year agreement with the contractor, according to an agency proposal reviewed by the I-Team. The proposal said it expects to close the deal by next July 1. The contractor would oversee the system’s 59,267 daily parking spaces, 56 parking lots and garages, and 3,445 parking meters. …