Two months after Ohio State University agreed to lease its campus parking operations for $483-million over 50 years, Indiana University says it plans to seek a similar windfall, the Associated Press reports. Indiana is about to issue a request for proposals for a 30- to 50-year lease on parking facilities on its Bloomington and Indianapolis campuses.
Under the Ohio State plan, the university retained ownership of the parking lots and garages, and the Australian company that signed the lease paid the full amount upfront. The outsourcing deal was controversial on the campus because, while it will bring the university needed revenue, it allows the company to increase parking fees by 5.5 percent a year for the first 10 years.
Correction (8/30/2012, 12:12 p.m.): This post originally misstated the fee increase that the company with Ohio State University’s parking concession may impose. It is 5.5 percent a year for the first 10 years, not 7.5 percent. The post has been updated to reflect this correction.