From Harrisburg City ---- MAYOR COMFORTABLE WITH NEW HARRISBURG PARKING AUTHORITY VALUATIONS

City Mayor Linda D. Thompson said today that the new property valuation undertaken by the Harrisburg Parking Authority (HPA) points to underlying strengths which may impact Act 47 planning.

Over a 30-year term of the lease, the Valuation found that average annual leases for a three-garage system are approximately $1.89 million in terms of 2011 dollars, Mayor Thompson commented.

This is better than anticipated and may or may not impact Act 47 planning.

The mayor emphasized this is a property valuation limited to only the Walnut Street, Chestnut Street and Fifth Street properties owned by the City and leased to the HPA.

The value of these properties is tied to the parking systems potential to generate revenue for HPA and project net income through 2040, Mayor Thompson said.

This is a realistic approach to valuation and the numbers translate better than anticipated.

The mayor complemented the Authority for the diligent valuation. This approach gives us a starting point for discussions of potential lease payments for the entire system-wide parking concession moving beyond 2011. She added.

Last month, the system-wide business valuation conducted by the same firm, Wilbur Smith, Knoxville TN, found that the current projected 30-year concession lease is worth approximately $215.5 million, while an as is sale of the HPA system is estimated to be worth approximately $259.1 million at the mid-sale range, with a high sales value reaching beyond $280.

All of this may go into the Act 47 mix to produce the best options all parties, including the public, can consider moving forward. Mayor Thompson said.

As the Capital of the Commonwealth of Pennsylvania, the City of Harrisburg is a dynamic, vibrant, and diverse City committed to a vision of transition and growth well into the 21st Century. The City is an Equal Opportunity Employer and transparent in business practice. Its residents have a strong sense of community and public service and take great pride in the City's unique place in the history of Pennsylvania.

Authority members decide not to release the appraisal report preformed by firm Wilbur Smith Associates