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IU Will Not Privatize Parking Operations

IU's CFO says the money the university could have received from a lease was not enough to justify losing control of the parking operations for 50 years.

parking lot

Photo: WFIU/WTIU

A Goldman Sachs analysis showed IU could have received $275 million for a 50 year lease of its parking operations.

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.

Gretchen Frazee

Gretchen Frazee is a reporter/producer for WFIU and WTIU news. Prior to her current role, Frazee worked as the associate online content coordinator for WFIU/WTIU. She graduated from the University of Missouri-Columbia where she studied multimedia journalism and anthropology. You can follow her on Twitter @gretchenfrazee.

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  • mothership49

    Good decision. Good in the short term. Good in the long term.

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