by Bradley Parsons
Staff Writer
Most fans realize that parking around the Sports Complex can be pricey. But even seasoned fans might balk at the City’s bill this year: $1.7 million.
The City expects to pay that amount to Metropolitan Parking Solutions, the private owner/operator of three Downtown parking garages. The money will help MPS defray operating costs and will help ensure the firm clears this year an 8 percent profit on the garages.
The payout was expected. It’s part of a unique financing arrangement negotiated by the City and MPS that led to the construction of the garages. A fourth garage, intended for the stalled Duval County Courthouse, is under construction.
The deal reached in February 2004 called for MPS to pay $5.7 million for the land under the garages. The City loaned MPS that money and $50 million from City bonds to build the garages.
In exchange, MPS oversaw construction and now runs the garages. Once the garages start making money, the City will share in the profits. The City also has an option to buy the garages.
Until the garages turn profitable, the City will continue subsidizing operating costs and MPS’ revenue.
MPS partner Mark Rimmer said it’s too early to tell how the garages will earn long-term. But he said so far they are performing well. On Tuesday, cars were lined up to enter the 460-space garage next to the Arena. The ACC baseball tournament and a series of graduations at Veteran’s Memorial Arena has kept business brisk this week.
Rimmer noted that garage revenues in future years will benefit from football crowds. The garages opened in February, prior to the NCAA basketball tournament games at the Arena. Football fans could fill both garages more than a dozen times a year, resulting in $28,000 per game at the current rate of $20 per car. Together, the garages offer 1,440 spaces.
“Of course our results are tied to Jaguars ticket sales, which now appear to be strong,” said Rimmer. “With the team expected to be competitive and playing one of the best schedules we’ve seen in a while, it looks like a pretty promising outlook.”
Rimmer also said the Sports Complex garages should soon be available to daily commuters. That should also boost revenue, he said.
MPS spokesperson Michael Munz said the City payout represented an investment, not an incentive. The subsidies now should lead to profit sharing later, he said.
“You can’t call these incentives,” said Munz. “This is not City assistance that goes unpaid. That money is paid back to the City with interest. We’re not going to cost the City money. We’re going to make the City money.”
But even when packed to capacity, the Sports Complex garages could cost the City. The garages compete with the City’s own supply of spaces in the area, which are managed by SMG.
SMG General Manager Bob Downey said his lots are losing business to the MPS garages.
“That Arena garage has been filled for every Arena event,” said Downey. “So take 400 cars worth of revenue right off the top and multiply that per event and you can figure out the impact.”
That costs the City because it also guarantees SMG’s revenues.