Indiana University Trustees announced today they will not privatize parking operations on the university’s Bloomington and Indianapolis campuses.
IU President Michael McRobbie made the recommendation and the finance and audit committee of the IU Board of Trustees endorsed that recommendation.
The trustees say they will instead pursue an internal business plan to increase efficiency and revenue. That plan, which is being created by a university parking task force, is scheduled to be complete by February.
“We conducted a thorough and inclusive analysis of both the financial and nonfinancial aspects of a long-term parking agreement and, in the end, concluded that the valuation of our parking assets simply wasn’t compelling enough to justify losing control of our operations for 50 years,”IU Vice President and Chief Financial Officer MaryFrances McCourt said.
A financial analysis by Goldman Sachs and Walker Parking Consultants, indicated the university could receive $275 million if it leased its combined parking operations.
Some IU parking employees had expressed concern over the university’s proposal to privatize parking, fearing it could cause them to lose their jobs.