Los Angeles explores the possibility of selling off parking garages to manage a budget crisis.
Amidst talk of hundreds, if not thousands, of layoffs, Los Angeles officials view the privatizing of parking garages as an integral part of their cost saving plans. Officials believe they could net $100-$200 million in the move. Some in Los Angeles feel reluctant to pursue the idea given some of the political controversy that swirled around a similar plan in Chicago, but financial times are so tough in LA that the option remains on the table.
"Under the proposal, the city would request bids for a long-term lease -- potentially up to 50 years -- of 10 parking garages, allowing them to be operated and maintained by a private concessionaire that would retain the bulk of parking proceeds. In return, L.A. would receive an immediate lump-sum payment and also could retain a small negotiated share of future proceeds.
Privatizing the facilities also would allow the city to pay off the $59.9-million debt on the new parking garage at Hollywood & Highland and the $35.5 million still owed on the garage at the Cinerama Dome, both in Hollywood."
FULL STORY: Click here to find out more! L.A. officials recommend privatizing 10 public parking garages

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