PGH Council's study implies parking lease price is fair

[caroline2]

Ouch. That's got to sting for Down, Peduto, Shields, and Rudiak. They claimed that a state takeover "wouldn't be that bad", and now that it's clear that it would be that bad, it just makes even clearer how their obstinance was about not wanting the mayor to get a "win" in the pension crisis. The idea of doing what is best for their constitutents didn't even factor in.

[pman]

Originally Posted by caroline2

Ouch. That's got to sting for Down, Peduto, Shields, and Rudiak. They claimed that a state takeover "wouldn't be that bad", and now that it's clear that it would be that bad, it just makes even clearer how their obstinance was about not wanting the mayor to get a "win" in the pension crisis. The idea of doing what is best for their constitutents didn't even factor in.

I actually think the state takeover is a good thing...OTOH...they aren't mutually exclusive. there's no reason the city can't allow a state takeover AND fund the pension with the parking lease. I agaree though, the numbers are staggering, and in excess of what evern the mayor had imagined. I say go for an outright sale of garages.

The plans that used different assumptions for investment returns calculated the city's total contributions at anywhere between $2.6 billion and $3.2 billion total over the next 30 years. The city's required contributions -- budgeted at $45.7 million this year -- would average $86 million a year at the low end and increase to an average of $106 million at the high end.

Actuary: Pittsburgh can't ignore its pensions - Pittsburgh Tribune-Review

[caroline2]

I completely agree that it's going to be painful, state takeover or otherwise. But I think the threat of a state takeover -- having the state keep us honest -- is the best situation to be in. The city still gets some control over what staggering cuts to make and when, and the state makes sure that we don't perpetually kick it down the road (anymore).

But that only works if council is serious about addressing the pension crisis. Half of them weren't before. Maybe this report will wake them up a bit.

[pman]

the parking drama continues, with dumbass peduto taking his extreme stance at the cost of the city's future

In an e-mail to council members today, LAZ Parking CEO Alan B. Lazowski said his consortium would pay the city $355 million up front for a 50-year lease, which it could cancel after 30 years in return for a partial refund. Unlike the original bid, the compromise offer would have the city get a share of parking revenue from 2022 through 2061 that would total $800 million to $1 billion. LAZ would also modernize meters and spend $93 million improving garages. The city would get all revenue from advertising in the garages.
Coming increases in neighborhood parking meter rates would be trimmed to levels proposed in a plan floated by City Controller Michael Lamb and some council members...
Mr. Lavelle's plan would involve leasing Downtown garages to private interests for around $160 million, while selling Mellon Square Garage, five lots and all meters to the Pittsburgh Parking Authority for $170 million. Combined, those deals could pay off the authority's debt and shore up the pension fund.
Council Finance Chair William Peduto, though, said privatization was a dead issue. He said the city has $107 million in reserve that it could put into its pension fund.

Read more: 2 new city pension bailout plans floated