PowerPoint Presentation (added 11/21/2023)

Black Lot Parking Garage Operating Agreement  
Monetizing City Assets to Improve Glendale

Balance Scorecard
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Project Overview
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• Public Parking Garage will be owned by the City of Glendale
• Provides for an additional 3063 spaces in the parking garage in 
addition to 744 parking spaces at grade (located under garage)
• Maintains City’s contractual obligations to provide 4001 at grade 
parking spaces within the Black Lot to the AZ Cardinals  and 
AZSTA
• Provides additional parking capacity for large scale events in the 
Sports and Entertainment District and at the VAI Resort 
• Provides a long-term “on-going” revenue stream to City

Purpose of the Agreement 
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• Assigns responsibility for operating and maintain 
the parking garage on behalf of the City
• Establishes responsibility of both Operator and 
the City for how capital repairs will be addressed 
for Parking Garage in the Black Lot

Operating Agreement Overview
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• Initial Term of 25-years, with Two – 10-year extensions
• Establishes responsibility for day-to-day operations of public parking 
garage
• Requires Operator to conform to existing parking and use agreements 
the City has with AZSTA and the AZ Cardinals, to include:
– Provision of 4001 parking spaces at the surface level of the Black Lot for all NFL 
events and Stadium Events as defined in agreements
– Prohibits sale of concessions, including merchandise and food & beverage, during 
qualified Stadium Event dates
– Prohibits advertising on or within the parking garage site per existing agreements
– Prohibits access to the elevated parking spaces in the garage for attendees of 
qualified Stadium Events / NFL Events (does not apply for access to parking 
spaces at surface level under garage

Operating Agreement Overview
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• Establishes process for the setting of all parking fees
– Dynamic pricing
– Reimbursement Schedule for validated parking from VAI 
establishments (restaurants, etc.)
• City will retain the ability to commit up to 2000 of the 
3,063 spaces within the parking garage to help attract a 
future Super Bowl, Final Four or World Cup event
– Parking Revenue from these events would be provided to Local 
Organizing Host Committee

Financial Overview - Revenues  
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• Parking revenue includes all revenues collected from use of garage, 
special event rentals, advertising (where allowed) etc. 
• First 5 years of agreement 
– Operator pays all costs for maintaining and operating garage
– Collects required local taxes and distributes to City
– Operator retains 100% of collected revenue
• Year 6 through year 25 of agreement
– Distribution of Revenues defined as follows:
• Net Revenues equal gross revenue minus taxes less actual O&M expenses
• Net Revenues to Operator equal to 77.5%
• Net Revenues to City equal to 22.5%

Financial Overview – Capital Repairs
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• Establishes Capital Repair Account
– Requires mutual development of a rolling 10-year Capital 
Improvement Plan to include funding mechanism 
• Operator to be responsible for 77.5% of all capital repairs 
during term of agreement (including extensions)
• City to be responsible for 22.5% of all capital repairs 
during term of agreement (including extensions)

Financial Overview – Initial Contributions
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• Establishes Financial Contribution by Operator
• Fees paid to City establishes right of Operator to retain Net 
Revenues as defined during the term of the Agreement
• Total amount owed to City of $58,000,000, Operator to pay City 
as follows:
– $16,000,000 between January 1, 2024 and June 30, 2024 
– $42,000,000 between July 1, 2024 and issuance of Certificate of 
Occupancy
• Schedule to be negotiated with Operator and reflected in the FY24-25 Annual 
Budget10,500,000 as adopted by City Council

Financial Overview – Revenue Projections
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•
Operating Income (starting Year 6 – does not include taxes)
–
Estimated Revenue
–
$ 8,322,000 – Daily Fee ($20 per vehicle, 1,140 per day)
–
$ 9,375,000 – Special Events ($50 per vehicle, 75 events annually, 2,500 cars per event)
–
($ 3,832,500) – Validation Credit ($15.00 per vehicle, Net $5.00 to garage x 700 cars)
–
$13,864,500 – Total Annual Gross Revenue before taxes
–
Estimated Expenses
–
($472,185) – 3% Credit Card Transaction fee
–
($720,000) –  traffic control, customer service
–
($540,000) – Security (labor, vehicle, supplies)
–
($1,140,000) – Maintenance ($300 per year per stall)
–
($270,000) – General administration (utilities, insurance, supervisory labor)
–
($3,142,185) - Total Annual Expenses
–
$10,722,315 – Net Revenue
–
$ 2,412,521 – City Share (22.5%)

Financial Overview – Other Considerations
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• Operator will not be reimbursed for Management fees – only 
actual expenses incurred
• Allows for establishment of a dynamic pricing model to 
maximize revenue opportunities
• Requires garage to be managed in manner consistent with 
parking agreements City has with AZSTA & AZ Cardinals
• Does not allow use of surface parking spaces in the Black 
Lot during non-Stadium Events. City can negotiate a 
separate agreement with Operator to address use of spaces 
and how revenue, O&M will be addressed

Aerial Footprint 
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Garage Rendering
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Garage Rendering
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Garage Rendering
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Garage Rendering
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Garage Rendering
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Garage Rendering
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Garage Aesthetic
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Garage Aesthetic
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