Indianapolis City officials are announcing a new parking deal with ACS. One they say will be a better deal for the city and address concerns by critics of the original proposal. The original 50-year deal would have paid the city $35 million up front and some revenue sharing, however the deal would be binding for the entire term.
Under the new proposal announced Wednesday, Indianapolis would get $20 million up front, but it would also be able break the lease every 10 years. The city would get an increase in its share of revenue which is now estimated to be between $515 million and $600 million over the 50-year term.
In exchange for the city’s ability to terminate the lease every 10 years, Indianapolis agrees to pay a termination fee. $19.5 million after the first 10 years, $12.8 million after 20 years, $9.8 million after 30 years, $6.9 million after 40 years.
There is also more revenue sharing between the City and ACS when it comes to revenue sharing programs from residential parking permit programs. However the city has the option of sharing advertising and signage revenue with ACS.
Proceeds from the parking deal would be used for infrastructure repairs and maintenance. The deal must now have approval by the City-County Council.