The Auckland Council wants to sell or lease its four parking lots to pay its $ 1 billion stake at the expense of the city railroad.
However, the automobile association warns of the potential increase in parking costs when parking buildings fall into private hands.
Mayor Phil Goff pledged to finance a $ 500 million share in additional troop fees without raising the rate or exceeding the debt limit of the council – partly selling or renting 4,500 parking spaces in four city parking lots.
He said I could collect $ 100 million. But on April 4, SkiCity sold a 30-year concession to manage 3200 central parks in Auckland by 2048 for $ 220 million, suggesting that 4500 parking spaces could be worth about $ 300 million.
About half of the imperial councils (2088) are located in the building of Dovntovn near the waterfront. The others are in the Civic Park below the Aotea Market (1015), Victoria St (888) and St Fanshave (497).
Four buildings had a book value of $ 224 million in 2016.
Goff said that about $ 50 million from car sales will be set aside for the expansion of parking facilities and rides on the rail network and the main bus line.
"We are looking at the sale or transfer of some of our secondary commercial assets, like some of our parking lots for about $ 100 million, of which we would invest half of it in car parking and driving," he said.
"Council officials look at four buildings in the central part of Auckland – Fanshave St, Victoria St, Dovntovn and Civic carpark, where we could do what SkiCity did and give a concession for perhaps 30 years."
He agreed that the sale of parking facilities would reduce the future revenue of the council, but said it was worth making money in advance to finance the rail link.
Auckland Transport, an entity controlled by a council that manages the carparks, raised its daily expenses in the Dovntown Park by 67 percent in January on the grounds that parking is "often full".
President of the Property Council, Auckland, Michael Hollovai, said last year that "suggestions were offered" to an unwanted proposal "for parking facilities that could be restored for more valuable use.
A Bar Association spokeswoman, Barney Irvine, warned that the sale of four council buildings could lead to an increase in prices.
"Aucklanders will be quite pleased that the council will make better use of its assets, but we would not want a situation where private parking companies have full control of street parking in the central business district, especially if it is the case of only one private operator – monopoly "he said.
"It's a recipe for price increases. If you go to any private operator, you automatically have a risk of price increases, which is even more pronounced where only one company does it.
"If that's the case, I'd like to see a tender process that provides as many competitors as possible."
The parking concession in SkiCity was won by the Australian parking operator Care Park, on behalf of Mackuarie Principal Finance. Care Park operates a park in Nevarket, but is currently far behind the Auckland market leader, Vilson Parking.
Goff said the proposal to sell or lease carparks was part of a five-point plan proposed by council officials after the council was notified of an increase in the $ 1 billion rail link on Friday night.
The other four proposals are:
• Re-negotiate the debt of the panel in order to take advantage of the fall in interest rates, which could save $ 120 million "probably for a period of at least 10 years."
• Revaluation of under-valued assets and excessive obligations, such as future bus contracts, to reduce net debt to the council, which would help him to keep the group's debt less than 270% of the group's income within the limits of the last year.
• halve council funds from about $ 200 million to $ 100 million.
• Asking the Government to pay more than half the share of railway loop costs earlier in the construction period, which would allow the panel to pay a larger portion of its share at the end of the period around 2024, until the net debt is reduced due to higher amortization fees for property built until then.
All suggestions were considered today by a workshop to which all councilors were invited, but they have not yet been formally approved by the full council.