The Eastern Michigan University Board of Regents agreed to a new deal in order to monetize their campus parking systems on Friday.
The long-term agreement will provide a full payment of $55 million to the school from contractors in initiatives to boost the university’s funds.
EMU chose a Dallas-based company, Preston Hollow Capital, to be the concessionaire throughout the terms of the new agreement. LAZ Parking, who operate over 2,500 parking venues across the United States, had been chosen as the operator of the now-privatized parking systems.
Under this agreement, EMU is due to transfer all of their parking operations to LAZ for an upfront fee, which will help the university fund investments on their academic programs and facilities, the University said.
“That group really worked very hard to come to a conclusion that yields the maximum financial value while providing a great parking operator for the university,” Michael Valdes, EMU’s Chief Financial Officer, said.
Valdes also reported that the process that led to their choice of vendor fit terms the university sought out.
“They’re probably the most experienced firm in the space of public-private partnerships,” said Valdes about LAZ Parking, which also handled the parking operations for Ohio State University since 2012, following OSU’s approval of a whopping $483m long-term concession agreement and lease.
Student workers under the parking operations, also who primarily work in the university’s parking enforcement, are most likely to be terminated from their positions as LAZ takes over.
“Over the length of this agreement, I would expect that enforcement would move from what currently is a very manual process to be one that is really technology driven,” said Valdes.
EMU, boasting over 21,000 students, features over 9,700 parking spaces that are spread within 2 garages, 179 meters and 36 lots.