Like many other cities around the country — especially in California — Los Angeles is looking for ways to balance its budget. One of ways the city hopes to reach this goal is through selling some of its assets, or partnering with the private sector. The first items up for bid look to be the city’s parking assets. For more on this, read the following article from the law firm Allen Matkins, as posted on JD Supra.
The City of Los Angeles will be reaching out to the private sector in an effort to balance the City budget by offering to sell, privatize, or venture many of the City’s assets and operations, on which additional information can be found here. It appears that the privatization of the City’s parking assets may be the first measure by the City of Los Angeles to fill budget gaps. Plans are already underway for the City to issue a Request for Qualifications for public-private partnerships for the operation and management of parking structures and parking meters.
On Tuesday, April 7th, the Office of the City Administrator urged the Mayor and City Council to approve the creation of parking concession agreements and laid out a bidding schedule for 2009. A proposed term sheet for parking concessions is expected to be finalized by June 2009, and the RFQ and RFP to be issued by July and August 2009, respectively. The Mayor and City Council also are considering several investment banking firms, including JP Morgan Chase & Co., to assist with bond and other financial transactions relative to these parking concessions.
In related developments, Mayor Antonio Villaraigosa will announce tomorrow during his annual State of the City address a series of measures to address the growing deficit. The address to be held in San Pedro is likely to announce new specifics regarding plans being developed by City officials to sell City assets and raise funds to fill the fiscal gap. The City’s budget deficit is now projected to exceed $450 million.
This article was oiginally posted on JD Supra.
If you are interested in information on the bidding process for anticipated parking concessions please contact Allen Matkins Leck Gamle Mallory & Natisis LLP.