Appendix 1


Garage Cost Analysis


Social Science

Total Number of Spaces


Capital Cost


Annual Revenue

$     516,000.00

Annual Operating Costs

$  1,790,000.00

Net Annual Expense

$  1,574,000.00

Annual Operating Loss

$  1,058,000.00



Approx annual permit holders


Annual permit rate increase

$ 148.00


One site commonly suggested for a garage is on the existing parking lot on the west side of the Social Science Building.  Physical Plant has analyzed the construction and operating costs of a garage on that site with 450 parking spots, based on the following assumptions.  The existing lot would lose about 140 spots, for a net increase of 310 spots. Of the 450 spots in the garage, 350 would be reserved for visitors and short-term parking ($3 an hour, $12 daily maximum) while 100 would be available for purchase to permit holders at a rate of $150 a month, higher than the current core rate of $89 a month, and well above the current Springett rate of $28.  Experience at other universities indicates that there would be 100 people willing to pay the $150 rate to park in a garage.


Construction costs of $13.5 million are paid off over 25 years at an interest rate of 6.5%, for an annual loan cost of $1.1 million.  Other costs including capital renewal (at 3% of the initial construction cost), regular maintenance, and staffing, would total $0.69 million a year, so that total annual operating costs are $1.79 million.  There would be savings of $0.216 million in wages in several nearby parking lots (Alumni Thompson, Medical Science, Weldon), because they would be designated permit only and not require attendants.  The net increase in annual expenses from the garage is $1.574 million. 


From the additional expenses we may subtract the additional revenues which the garage generates over and above current revenues without the garage; the additional revenues on an annual basis are estimated to be $0.516 million, involving an annual loss of $1.058 million on the garage.  With 7,150 permit holders, the required increase in the monthly permit rate for all parkers is $12.32 a month, or about $148 a year.