(a) As used in this section, the word person means a natural person, a corporation, a partnership, or unincorporated association.
(b) It is hereby declared to be the public policy of this state, with respect to each parking facility, that upon an authority’s acquiring a parking facility the authority shall carefully consider and decide, whether it is in the public interest that the authority itself operate such facility, enter into a contract with some person to operate such facility for the authority, or lease such facility. Among the factors the authority shall consider in making such decision are the following:
(1) The relative efficiency of the alternate operations.
(2) The relative economy of the three alternate operations.
(3) The overall advantage and benefit to the authority and the public of the alternate operations.
(c) In order to make the foregoing determination the authority shall ascertain the following: The amount necessary in each year to pay the principal of, and interest on, the bonds proposed to be issued to finance the parking facility; the amount necessary to be paid each year to any reserve fund which the board deems it advisable to establish in connection with the retirement of the bonds and the maintenance of the parking facility or facilities; and, unless the terms under which the project is to be leased provide that the lessee shall maintain the project and carry all proper insurance, including liability insurance, with respect thereto, the estimated cost of maintaining the parking facility in good repair and keeping it properly insured.
(d) The board shall not enter into any lease of the parking facility unless the lease provides for the lessee to pay to the authority an amount sufficient to meet the amortization requirements during the term of the lease and to pay the cost of keeping the parking facility in good repair and keeping it properly insured, unless the lease obligates the lessee, at lessee’s expense, to keep the facility in good repair and properly insured.
(e) The lease agreement, at the discretion of the board, may contain provisions describing minimum operating hours, maximum charges to be collected by the lessee, and other terms the lessee shall be required to observe in operating the parking facility.
Last modified: May 3, 2021