A request for proposal (RFP) for a long-term parking lease in Cincinnati has elicited a $40 million bid from a public sector organisation dedicated to economic development.
The Port of Greater Cincinnati Development Authority put forward its proposal Wednesday with a caveat to promise to reinvest 50 percent of future revenue from its would-be agreement in Cincinnati, said spokeswoman Gail Paul.
Cincinnati, Ohio, a historic US Midwest metropolis, issued a RFP for concession bundling on-street and garage parking in November, seeking a minimum $40 million offer on a 30-year lease.
The RFP is the second high-profile public-private partnership (PPP or P3) for the Buckeye State in 2012: Ohio State University (OSU) agreed to lease its on-campus parking for $483 million in a deal widely credited with revitalising privatised parking in America.
The authority in its 74-page RFP response noted its openness to “community input,” and said it would partner with a private parking operator.
The lease would include a 6,000-space on-street, metered system, and 2,528-space off-street component, as well as a 725-space parking garage.
For a five-year period, Cincinnati generated $32.5 million in net operating revenue, averaging $6.5 million a year, from its parking system, according to its RFP.
A voicemail message left for City Manager Milton Dohoney was not returned. The Office of the City Manager published the RFP. Consultant Walker Parking, adviser to the office, declined comment.
Dohoney has said he planned to put $20 million generated from a lease toward reducing a $34 million city budget deficit.