EMU Today

YPSILANTI – In action Tuesday, April 17, the Ypsilanti City Council supported Eastern Michigan University's request for approving the issuance of tax-exempt bonds, clearing the way for the $55 million agreement to proceed. The University is monetizing its parking operations in a 35-year agreement with Preston Hollow Capital/LAZ Parking. The agreement brings the University an upfront payment of $55 million, with funds directed toward needed capital improvements and to bolster University reserves.

Reserves

The $55 million upfront payment will be deposited into EMU's reserves, which will more than double as a result of the agreement. In a recent accreditation report issued to Eastern, the Higher Learning Commission required the University to substantially increase its reserves.

Facility enhancements

As part of its capital spending initiatives, Eastern plans to issue bonds this summer to fund important capital projects on campus. These include renovations to Sill Hall (home of the College of Technology), the Rec/IM, the Quirk Theatre building, the Neuroscience Lab in the Science Complex, Warner, Hill residence hall, and the Gary Owens Building (College of Business). The additioin of $55 million to University reserves will support the bond issuance for these projects. As a result, summer construction activity on Eastern's campus will be extensive

Parking rates/operations

The agreement caps parking rate increases at significantly lower levels than in recent years. Annual increases will be capped at 5 percent for the first five years of the agreement – compared to an annual 17 percent average increase for students since 2010. After the initial five years, in 2022, the maximum annual increase will be 4 percent or the average annual increase in the Consumer Price Index for the preceding five years, whichever is greater.

Users will notice few changes to the EMU Parking system. Students and employees will continue to purchase/obtain parking permits on campus and, where applicable, payroll deduction will continue. The new opeartor will invest more than $4 million in facility improvements during the first three years of the agreement. 

Staffing

LAZ Parking has indicated it will hire eight employees compared to the five positions the University had in its parking operations. All current staff has either hired on with LAZ or moved to other positions at the University. LAZ already has conducted an employment fair on Eastern’s campus to recruit more student workers. 

Background on tax-exempt bonds issuance

The federal Tax Equity and Fiscal Responsibility Act of 1982 requires the financing and issuance of tax exempt notes be approved by a governmental entity having jurisdiction over the area where the project assets are located (i.e., Ypsilanti City Council).

The City of Ypsilanti has no financial obligation on the issued bonds, it would not be considered in the city's credit worthiness, nor would they be factored in the city's financial statements.

About Eastern Michigan University

Founded in 1849, Eastern is the second oldest university in Michigan. It currently serves more than 20,000 students pursuing undergraduate, graduate, specialist, doctoral and certificate degrees in the arts, sciences and professions. In all, more than 300 majors, minors and concentrations are delivered through the University's Colleges of Arts and Sciences; Business; Education; Health and Human Services; Technology, and its graduate school. EMU is regularly recognized by national publications for its excellence, diversity, and commitment to applied education. For more information about Eastern Michigan University, visit the University's website.