The mayor of Harrisburg, Pennsylvania, recently announced the positive results of a valuation conducted on a selection of city-owned properties leased to the city's parking authority.
The findings may impact planning associated with the Financially Distressed Municipalities Act, which gives the Pennsylvania Department of Community and Economic Development the authority to declare certain municipalities as being financially distressed and take appropriate actions. "Over a 30-year term of the lease, the valuation found that average annual leases for a three-garage system are approximately $1.89 million in terms of 2011 dollars," said City Mayor Linda Thompson. Last month, a system-wide business valuation
found the current projected 30-year concession lease to be worth an estimated $215.5 million, and an "as is" HPA system sale was valued at approximately $259 million. "All of this may go into the Act 47 mix to produce the best options all parties - including the public - can consider moving forward," Thompson added.