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 Construction of Westchester County Medical Center Garage is example
 of cutting edge hospital parking development trend
 CLEVELAND, May 26 /PRNewswire/ -- APCOA is beginning to do for the hospital parking business what it has long done for airport parking. In the process, APCOA hopes to help hospitals hold down healthcare costs and provide better customer service.
 As one of the largest and most experienced parking management firms in the world, APCOA introduced professional parking services to airports more than 40 years ago. In 1992, APCOA parked more vehicles -- about 150 million -- than any other parking company at more than 500 facilities, including 90 of the nation's 225 airports.
 Now, APCOA is making a strong push in the hospital parking facility development business. While the company manages and operates parking facilities at 24 medical centers across the country and in Canada, it is at the cutting edge of a new development trend.
 In a first-of-its-kind project, APCOA is currently building an $11 million parking facility at the Westchester County Medical Center in Valhalla, N.Y. What makes this public/private project unique is that it is being completely financed, designed and constructed by APCOA, and its subsidiary companies. APCOA will manage the 1,100-space garage as well as 19 surface lots, which will be upgraded as part of the deal.
 Despite such a heavy financial commitment, APCOA has agreed that Westchester County will receive a guaranteed $10 million in shared revenue over 30 years on the projected net profits of $20 million.
 "When a hospital builds a new wing, a parking garage, or any other capital improvement, the cost normally shows up in some way on a patient's bill because these costs are passed through to the consumer," said Ronald A. Kinney, president of APCOA Hospital Parking Properties, a division of APCOA. "Our strategy removes the capital cost from the hospital's balance sheet and saves the healthcare consumer money. It's a unique win-win approach where a public/private partnership results in a first-rate parking facility, lower healthcare costs and enhanced revenue for the hospital, and in this case, Westchester County."
 When Westchester County realized it needed additional parking at the Valhalla Medical Center, a 636-bed hospital, it issued a request for proposals while recognizing it needed to find an alternative method to finance the garage in a era of diminishing resources.
 "This project enables us to build a new parking facility without incurring any more debt or any risk," Westchester County Executive Andrew P. O'Rourke said. "And at the same time, we are receiving revenue without spending any taxpayer money."
 With a strategy to get a first-class facility at no cost to Westchester County, a request for proposals was issued to companies with a track record in hospital parking and the project was advertised in several national journals. After an extensive review process, a multidisciplinary team of experts from Westchester County, including representatives from the departments of planning, budget, finance, law, and public works selected APCOA. The selection was then approved by the County Board of Legislators.
 APCOA is building the parking facility at its sole cost and expense. The agreement with Westchester County requires APCOA to cover any shortfall in revenues regarding overhead, debt service, expenses or management. APCOA will operate and maintain the parking garage, which is being built on five acres of county-owned land. After 30 years, the county will own the facility free of debt without ever having had to borrow any funds.
 "We believe strongly that this makes good economic sense for APCOA and for Westchester County," said Kinney. "Our business is parking and we know all of the ins-and-outs. We showed Westchester County how, if properly built and managed, they could share substantial revenues with us at no risk to their taxpayers while not adding a cent to anyone's medical bill.
 "Not only does the county make risk-free money, but we also help hold down medical inflation. We know this parking facility development strategy makes sense not only at county-owned hospitals, but at other large, privately owned-and-managed medical centers across the country with the need for first-rate, paid-parking development," concluded Kinney.
 Sumitomo Trust and Banking Co., Ltd., of Japan is providing the $11 million financing for the project in an arrangement put together by APCOA Capital Corporation. Graelic, Inc., APCOA's functional design division with special expertise in designing garages for maximum capacity and efficient traffic flow, is the project's functional design consultant. General contractor for the project is Westchester County- based Cappelli Enterprises.
 APCOA's Hospital and Medical Center management programs include: Jackson Memorial Hospital, Miami; Memphis Regional Medical Center, Memphis, Tenn.; Toronto General Hospital, Toronto; Town Grant Medical Center, Columbus, Ohio; The Queen's Medical Center, Honolulu; and the Health & Education Authority of Louisiana Garage, New Orleans; among others.
 "We have entered an era in healthcare where outsourcing and privatization of non-medical services, such as parking facility management and development, will become the norm because the benefits are so great," said Kinney. "APCOA's position as the premier parking management and development company in our industry positions us to work with the likes of the Westchester County Medical Center, or any other large hospital or medical center that has a need for a parking facility it wants successfully developed and managed."
 -0- 5/26/93
 /CONTACT: David Eden of William Silverman & Company, 216-696-7750, for APCOA Hospital Parking Properties/

CO: APCOA Hospital Parking Properties ST: Ohio IN: HEA SU:

AR -- CL013 -- 2455 05/26/93 12:21 EDT
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Publication:PR Newswire
Date:May 26, 1993

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