New York City officials have recently issued an Expressions of Interest document, calling on investors to identify ways to extract more revenue from city assets, including its parking meters and garages, real estate and infrastructure, while reducing costs.
The EOI is seeking ideas on how to develop new sources of revenue and restrain costs, as officials confront a projected deficit of almost $5 billion, or 6.8 percent, on an estimated $71.6 billion fiscal 2013 budget.
According to the city’s Management and Budget office, in 2010 the New York City treasury reaped more than $140 million from its 49,989 parking meters and 48,854 mini-meters. In the same year the city also collected about $575 million in parking violation fines.
Whilst an unconventional approach, we look forward to the outcomes of this venture by New York City and applaud the effort to apply commercial principles to property management. It will be interesting to see what level of ownership and control will be demanded by the private sector in exchange for the security of additional revenue streams.