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Premium parking rates at airport to rise under new pact

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The most convenient and priciest parking at Indianapolis International Airport will cost even more under a new contract with Global Parking System of Indiana Inc.

The Indianapolis Airport Authority on Friday morning approved a new revenue-sharing agreement with Global, the current valet operator, which will boost the airport's annual revenue from premium parking to a projected $1.9 million this year from $800,000 last year.

Rates will go from $20 to $22 within the next few months, although they are subject to revision based on market response. The new two-year agreement also changes the service from traditional valet to a mix of valet, assisted valet and self-parking right next to the terminal sky bridge.

Parking is the airport's second-largest revenue source, generating almost $40 million a year. Spokesman Carlo Bertolini said total revenue from premium parking is conservatively projected to remain the same, $2.4 million, but that Global agreed to take a smaller share because it's now a proven revenue stream.

Locally based Global will keep 18 percent of premium parking money and 75 percent from ancillary services, such as oil changes and dry-cleaning.

Global was chosen over AmeriPark, Denison Parking, Parking Management Services Inc., Parking Solutions Inc. and USA Parking.

Also Friday, the airport authority signed off on new land leases for a second 75-acre solar farm to be constructed and operated by ET Energy Solutions LLC, a joint venture of Indianapolis-based Johnson Melloh Solutions and Carmel-based Telamon Corp.

The second 10-megawatt farm, expected to break ground in the third quarter, will be west of one that's currently under construction by the same group. When both solar farms are complete, Indianapolis will be the site of the largest airport-based solar farm in the country, airport officials said.

The second solar farm is expected to produce more than 15 million kilowatt hours of electricity a year, or enough to power 1,200 average homes. Electricity will feed directly into the Indianapolis Power & Light grid through existing surface transmission lines that connect the airport terminal to an IPL substation west of the airport.

“Development of a second IND-based solar farm is the result of our continued focus on both economic sustainability and environmental commitments,” airport Executive Director Robert Duncan said in a prepared release.

Under land leases with two separate development sub-entities, Bulldog Energy Airport LLC and Indy Airport Solar Project II, the airport will receive $300,000 a year in rent for the first half of the 30-year contract and $350,000 a year in the second half.

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  1. So as I read this the one question that continues to come to me to ask is. Didn't Indiana only have a couple of exchanges for people to opt into which were very high because we really didn't want to expect the plan. So was this study done during that time and if so then I can understand these numbers. I also understand that we have now opened up for more options for hoosiers to choose from. Please correct if I'm wrong and if I'm not why was this not part of the story so that true overview could be taken away and not just parts of it to continue this negative tone against the ACA. I look forward to the clarity.

  2. It's really very simple. All forms of transportation are subsidized. All of them. Your tax money already goes toward every single form of transportation in the state. It is not a bad thing to put tax money toward mass transit. The state spends over 1,000,000,000 (yes billion) on roadway expansions and maintenance every single year. If you want to cry foul over anything cry foul over the overbuilding of highways which only serve people who can afford their own automobile.

  3. So instead of subsidizing a project with a market-driven scope, you suggest we subsidize a project that is way out of line with anything that can be economically sustainable just so we can have a better-looking skyline?

  4. Downtowner, if Cummins isn't getting expedited permitting and tax breaks to "do what they do", then I'd be happy with letting the market decide. But that isn't the case, is it?

  5. Patty, this commuter line provides a way for workers (willing to work lower wages) to get from Marion county to Hamilton county. These people are running your restaurants, hotels, hospitals, and retail stores. I don't see a lot of residents of Carmel working these jobs.

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