Printer Friendly

Financing Parking Facilities.

This clear and complete update of the intricacies of financing public facilities gives developers and municipal officials expert financial information required to understand and exploit the various sources of funding for parking facilities. Providing both planning outlines and working blueprints for construction of off-street parking structures and systems, it arms readers with the knowledge to know exactly what to ask for, what to avoid and what is possible in light of the current tax laws.

A reader can resort to this book for the knowledge of the major principles of financing parking systems and how they are actually put into practice. The author cuts through the confusion and red tape to show in advance the exact financing issues to be confronted and how to prepare for and speedily accomplish the financial objectives of a project. Many sophisticated, highly useful techniques of financing are presented in easy-to-understand language.

This reviewer would highlight the areas of the book that people in the public sector are concerned about, such as items to consider in the cost of issuance of bonds (bond counsel fees, underwriter's spreads and bond discounts); conventional financing (Letter of Credit, mortgage fees, other fees and charges); and the cost of money through conventional financing. The text also provides insights to financing through a conventional debt equity package and the mortgage debt interest rate.

An important section, devoted to the 1986 tax law, defines the difference between public and private use, the exemption facilities and the use of tax-exempt bonds for an airport, mass transit, communications, etc.

The section, "Security for Parking Financing," addresses the bond resolution and trust indenture, bond coverage and mortgage of the facility provision in a lease. It also deals with bond ratings vs. municipal bond insurance and various financing, such as tax increment financing, tax-exempt and taxable financing structures, and enterprise capital funds. For each of the above issues, the book gives the pros and cons, along with areas that one should be aware of with respect to tax-exempt structuring: general obligation bonds, special assessment bonds, tax increment bonds, parking revenue bonds, basic security for the revenue bonds and the importance of rating the bonds by a rating agency.

The importance of a parking feasibility study is underscored, emphasizing for the first-time developer the pitfalls that can be encountered in the selection of the architect and general contractor. One cannot emphasize enough the importance of the architect and general contractor: a poor selection of either one of these two professionals can provide a negative impact on the community and the project, for continuous delays in the construction, especially in a downtown area, can cause considerable traffic congestion and frustration. A miscalculation by the architect and poor communications between the municipality and the architect also can be very costly, requiring excessive change orders for completion of the project.

In summary, this book not only introduces the first-time bond issuer to the wide world of financing parking facilities, it also addresses new and updated approaches for the construction of facilities and the availability of different types of bond issues that can be used in financing municipal or private parking structures.

The purchase of this book should not replace the utilization of bond counsel and underwriters for bond issues; it would, however, give the reader knowledge of what to expect from start to finish on any major parking facility.

Financing Parking Facilities is available for $52.95 from Van Nostrand Reinhold, 115 Fifth Ave., New York, NY 10003 (800/926-2665).
COPYRIGHT 1992 Government Finance Officers Association
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Author:Tubergen, Nathan R.
Publication:Government Finance Review
Article Type:Book Review
Date:Jun 1, 1992
Words:581
Previous Article:Budgetary Politics in American Governments.
Next Article:Managing Workforce 2000: Gaining the Diversity Advantage.
Topics:


Related Articles
City hall's parking garage helps downtown business.
It's Allied Renovation Corp. to the rescue!
Enhancing local government performance in Israel.
Kalikow group set to develop old Singer factory for storage.
L.J. MELODY ARRANGES FINANCING.
CITY MAY SURVEY VIEW OF PARKS BOND.
CITY PLANS PARK WITH SPORTS FIELDS FOR OLD NEWHALL.
COLISEUM PANEL MEETS IN EFFORT TO KEEP CLIPPERS IN L.A.
VOTER-APPROVED PARK PROJECTS TO START FAST.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters