1. M A R K E T R E S E A R C H
INFORMATION OF INTEREST
Current State of the Market
Affiliated Influencers
KK R A U T E RR A U T E R && CC O M P A N YO M P A N Y specialty linesspecialty lines
U.S. COMMERCIAL PARKING GARAGES INDUSTRY
Owners, Operators, and Management Companies

2. M A R K E T R E S E A R C H
Median Parking Structure
Construction Costs 2009
City Index Cost/Space Cost/SF
Atlanta 90.2 $14,028 $42.64
Baltimore 93.1 $14,479 $44.01
Boston 115.4 $17,947 $54.55
Charlotte 80 $12,441 $37.82
Chicago 114.9 $17,869 $54.31
Cleveland 99.5 $15,474 $47.03
Denver 95 $14,774 $44.91
Dallas 85.4 $13,281 $40.37
Detroit 103.2 $16,049 $48.78
Kansas City 102.1 $15,878 $48.26
Los Angeles 108.3 $16,842 $51.19
Miami 90.3 $14,043 $42.68
Minneapolis 109.8 $17,076 $51.90
New Orleans 88.9 $13,825 $42.02
New York 130.7 $20,326 $61.78
Philadelphia 113.2 $17,604 $53.51
Pittsburgh 97.6 $15,178 $46.13
St. Louis 102.9 $16,003 $48.64
San Francisco 123.8 $19,253 $58.52
Seattle 103.9 $16,158 $49.11
National Avg. 100 $15,552 $47.27
HOT Button Issues Dominating the Industry
Ancillary Service EXPANSION
•Off Airport Parking
•Valet Services
•Shuttle Services
•Parking meter enforcement services
•Street parking services
•Car pool coordination
•Public transportation services
RECENT Developments
Private companies are now designing, operating,
and developing parking garages for stadiums,
hospitals, and other large-scale venues.
Determined by geographic location Big operators’
sophisticated cash controls bring in more than mom-and-
pop operators, who lose profits primarily to employee theft
 investors need multiple properties to justify the cost cash
monitoring systems.
$/space by location:
Chicago: $4k - $5k/yr
Manhattan: $8k/yr
Parking PRICES

3. M A R K E T R E S E A R C H
•Government Operations/Municipal
Facilities
- Street Parking Enforcement
- Parking Meter Service Contracts
•Medical Facilities
•Educational Institutions
•Airports
•Hotels & Commercial Real Estate
parking as a “profit center”
NEW OPPORTUNITIES IN PARKING
Commercial real estate developers and property owners view parking as
potential profit center, maximizing profits or leveraging the original rental
value to a third party lenders by outsourcing to management companies.
Parking Enterprise Funds
Municipalities and universities are attempting to harness the power
of private sector entrepreneurship by creating an in-house Parking
Enterprise Fund (PEF) run as a “wholly-owned subsidiary” of the
creating entity, much as the NBC television network and parking
operator Interpark are subsidiaries of General Electric.
•Alatus Management purchased five parking structures from the City of Minneapolis in October 2007 for US $65 million. The city used the
funds to retire $16 million in parking structure debt and bolster its parking enterprise fund.[5]
•An investment group that includes a division of Citigroup Inc., John Hancock Life Insurance Co., and a private consulting firm tied to
Canada’s Vancouver Airport, contracted to take over Chicago’s Midway Airport. The terms of this transaction included a US $2.52 billion
payment to the City of Chicago. The group won a privatization bid in September 2008 for a 99-year lease. Midway Airport is Chicago’s
second airport and the 25th largest U.S. airport based upon annual enplanements.
Privatization
Examples of Monetization of Public Transportation Assets

4. M A R K E T R E S E A R C H
Legislation & Regulatory Compliance
Americans With Disabilities Act - requires parking facilities to include handicapped spaces, headroom for
wheelchairs, and accessible elevators for operation by the disabled
Energy Bill [signed by Bush Sr.] – made free parking provided to employees a taxable perquisite
Traditional Facility Management Contracts [typically 1-3 year term] Facility Management Responsibilities: hiring,
training, and staffing parking personnel, and providing collections, accounting, record keeping, insurance and
facility marketing services. Facility owner pays a minimum management fee and operating expenses: taxes,
license and permit fees, insurance, payroll and accounts receivable processing, and wages of personnel
assigned to the facility, maintenance, repair costs, and capital improvements.
Contracts & Income
Lease [typically for 3-10 year term] Provides for a contractually established payment to the facility owner
regardless of the operating earnings of the parking facility. The rent is generally either a flat annual amount, a
percentage of gross revenues, or a combination thereof. Management company is responsible for all facets of
operations, including utilities and maintenance. Owner is responsible for major maintenance, repair or property
taxes.
Fee Ownership Ownership of parking facilities, either independently or through joint ventures, requires a larger
capital investment than managed or leased facilities, but revenue flows directly to the company. Ownership
also provides potential for realizing capital gains from the appreciation in the value of underlying real estate.
Parking facilities are often regulated by both municipal and state authorities. [e.g.; NYC facilities are subject to
governmental restrictions concerning number of cars, pricing, and certain prohibited practices.]

5. M A R K E T R E S E A R C H
New Technology - Automated Garages
The U.S. parking garage industry has been slow to catch up to Europe’s use of technology. Larger Companies
automate all new construction and systems in their facilities technology solves most of the issues related to
employee theft, a problem that has plagued this industry. Technology can generate statistical data about usage,
consumer rates, daily traffic timing, and annual fluctuations. Reduction of manpower and streamlining industry
operations save costs.
Payment Media
Nearly all parking facilities accept some form(s) of non-cash payment. The most common type of media across all
segments was credit cards.
Access/Revenue Control Technology
According the International Parking Institute’s “Benchmarking the Parking Profession” [2004 survey], (20%) of U.S.
respondents utilize Automatic Vehicle Identification (AVI) technology in their operations. The survey also reported
that 26.8% of respondents use License Plate Inventory (LPI) technology.
Professionalization
The industry IS upgrading the staff it uses to run its facilities. More college graduates being hired, and more
supervisors are being certified by the National Parking Association. More computer software and better
accounting/management systems available, resulting in increased revenue control automation equipment. With
increased professionalization come higher labor costs, uniforms, more
Consolidation - Acquisitions by Large Competitors and “Roll-up” Consolidators
In 2002, the 50 largest firms in this industry captured 75% of the industry revenues,
Privatization/Outsourcing of Government Operations
Privatization of government operations and facilities are providing new opportunities for the parking industry.
Privatization of city services will continue for economic reasons. Cities and municipal authorities have begun
retaining private firms to operate facilities and parking related services in an effort to reduce operating budgets and
increase efficiency. Privatization in the United Kingdom and the United States has already provided significant
expansion opportunities for private parking companies. In the United States, several cities have awarded on-street
parking enforcement and parking meter service contracts to for-profit parking companies such as Central Parking.
Industry TRENDS

6. M A R K E T R E S E A R C H
Alternative POINTS of ENTRY
PPPs (Public-Private-Partnership)
•Provision of a public” service.
•Contractual relationship.
•Defined length and purpose.
•Allocation of Substantial Risks to private company
•“Value for money” and PPP incentives
BUYERS OF ASSETS IN THE PPP MARKET
Investors, such as public pension funds, seek long-dated, cash-flow reliable assets, the return on investment for which is
approximately 10-12%. Neither the traditional equities nor fixed-income markets during the past 7 years, but for stocks in
2006 and 2007, has been able to supply this return consistently without undue risk.
SELLERS OF ASSETS IN THE PPP MARKET
Cities and states happen to own existing assets that fit the characteristics of an investment that investors want: toll roads,
parking garages, lotteries, harbors, airports, etc. - steady and calculable cash flows.
The PPP market allows the seller to retain control of the asset and pocket a large, up-front “rent” payment in return for
transferring, under a long-term lease, the entity’s profit and loss risk to a private operator which, in turn, can operate the
asset far more efficiently. The asset stays in place with no interruption for the users and is intended to provide to the
investor the benefits of a traditional equity return for the risk of a bond. The large, up-front rent payment can then be
used by the seller for new infrastructure
* Figures according to document prepared by The Royal Bank of Scotland plc and/or RBS
Securities Corp. RBS North American Infrastructure Advisory and Finance with Zurich, RBS, Allied,
& Peckar and Abramson, PC

7. M A R K E T R E S E A R C H
PPP RISKS private
sector
TYPES of PPPs
•Management Contracts
•Design-Build
•Design-Build-Operate-Maintain
•Build Operate Transfer
•Build Transfer Operate
•Build Own Operate
•Design Build Operate Finance
•Concession
•Asset Sale
public
sector
private
sector
Alternative POINTS of ENTRY, cont’d.
(PPPs)

8. M A R K E T R E S E A R C H
Risk ALLOCATION
underwriting PPPs
Alternative POINTS of ENTRY, cont’d.
(PPPs)

9. M A R K E T R E S E A R C H
Alternative POINTS of ENTRY
(PPPs)
…to Prospecting OPPORTUNITY
Issuer Date Issued Insurance Request
The Norwalk Parking Authority
The City of Phoenix, Phoenix Convention Center
Department
The Anaheim Redevelopment Agency
8.25.09
12.11.09
9.3.09
Comprehensive General Public Liability and Business Interruption Insurance in
the name of the Management Agent with the Authority and the City of
Norwalk named as additional insureds for a combined single limit of $2,000,000
for each occurrence and $2,000,000 general aggregatefor bodily injury and
$500,000 property damage will be required. Full fire and extended coverage,
again in the name of the Management Agent with the Authority and the City
of Norwalk as a named insured, in a minimum amount equal to the full
replacement cost of the ramps/garages and equipment will also be required.
No co-insurance clause shall apply to any policy. Insurance coverage must be
through companies licensed to conduct business in the State of Connecticut
with a “Best” rating of “A” or better. The cost of the insurance is to be carried as
an operating expense in the annual budget.
Workers' Compensation Insurance as required by California statutes;(b)
Comprehensive General Liability Insurance, or Commercial General Liability
Insurance, including coverage for Premises and Operations,
ContractualLiability, Personal Injury Liability, Products/Completed Operations
Liability,Broad-Form Property Damage, Independent Contractor's Liability and
FireDamage Legal Liability, in an amount of not less than One Million
Dollars($1,000,000.00) per occurrence, combined single limit, written on anoc
currence form;(c) Garage Liability Insurance in an amount of not less than One
Million Dollars($1,000,000.00) per occurrence, combined single limit, written on
anoccurrence form;(d) Garage Keepers Legal Liability Insurance in an amount
of not less than TwoMillion Five Hundred Thousand Dollars ($2,500,000.00) per
occurrence ,combined single limit, written on an occurrence form;(e)
Comprehensive Automobile Liability coverage, including - as applicable
-owned, non-owned and hired autos, in an amount of not less than OneMillion
Dollars ($1,000,000.00) per occurrence, combined single limit ,written on an
occurrence form.
Example of Tactical Implementation
PPP Opportunity to Prospect Opportunity

10. M A R K E T R E S E A R C H
• Infrastructure Investment Funds
• Parking-Specific Asset Management Firms
• Commercial Real Estate Asset Managers
• Parking-Specific Consulting Firms
ADDITIONAL Alternative POINTS of ENTRY per Krauter Garage Prospect List
Company Assigned To
Spaces Under
Management
Facilities Under
Management
Geographic
Spread
Executive ContactNotes of Interest Comments
Subsidiary of Macquarie Infrastructure Group [Icon
and Central Parking operate approximately 50
percent of all NYC garages and lots, and both sold
their operations to outside investors for a combined
price of $1.5 billion in 2007.]
Per D. Letsche on 12.16.09: ICON Parking is written by Zurich they have
approximatly 100 locations. Amwins worked on this piece last year for a
broker that had a light referral in at ICON They did not get the business
but it stayed with (think it was Marsh) Zurich. Recalled that Zurich's
program was strong and reasonably priced
ICON [owned by Macquarie-
managed entity, Macquarie
Infrastructure Partners]
200+
Manhattan, New
York
PortfolioFirst Parking
Solutions (parking asset
manager)
400 National Jeffrey S. Gemunder
Next Parking 9000+ National
Next Parking combines creativity with market
knowledge to identify properties nationwide to add to
our portfolio. Employing our internal analysis and
management expertise, we structure offers to meet
the criteria of sophisticated sellers. We execute the
due diligence process rapidly and efficiently and
have the liquidity to close transactions quickly.
Next Parking aggressively seeks to acquire a diverse mix of parking
properties nationwide, including Existing, new and proposed garages, Self-
park and valet , Urban and off-airport , Surface lots and structured garages,
Mixed-use development, Joint venture partnerships. We help owners
overcome economic obstacles to selling through creative structuring and
flexible terms. Our transactional speed reflects the rapid and efficient
approach we take to moving transactions through the due diligence
process. We have sufficient liquidity to close transactions on an all-cash
Winpark Services [parking
management and consulting
organization]
National
Parent Company: Hines Interest Limited Partnership is one of the largest privately held
real estate development, investment, and management companies in the world, of
commercial development, while creating projects of lasting value for hundreds of
investor partners and clients. Hines has developed more than 700 projects including
stunning skyscrapers, premier corporate headquarters, mixed-use centers, industrial
parks, medical facilities, and master-planned resort and residential communities.
Currently, Hines has over 80 million square feet under management and controls assets
valued in excess of $13 billion.
*All notes can be found in entirety in the Parking Garage Prospect List*

11. M A R K E T R E S E A R C H
KK R A U T E RR A U T E R && CC O M P A N YO M P A N Y specialty linesspecialty lines
U.S. COMMERCIAL PARKING GARAGES INDUSTRY
Owners, Operators, and Management Companies
GENERATING NEW BUSINESS VIA
PARKING GARAGE DIALOGUE PARTICIPATION
who's talking.
what they're saying.
how to participate and be heard.
THE CONVERSATION

12. M A R K E T R E S E A R C H
UNCONVENTIONAL ACCESS POINTS
examples in PARKING GARAGE STAKEHOLDER DIALOGUE
Forum
access point
Community
of Professionals
Stakeholder
example
Dialogue
exchange
Dwight Gregory
Commercial Real Estate
Acquisition Consultant
Greater Atlanta Area
Subject: Looking to purchase
parking garages
Message: Interested in buying
parking garages 5+ ML in
value or more. Anything
smaller is too small of an
investment for us. Please
contact me if you have any
deals to discuss.
posts to
generates
interest
facilitates
dialogue
catalyzes
response
Todd Gallagher
COO, Apex Skypark, Inc.
Orange County, California
Response:
Dwight, would you be interested in
investing into a Robotic Parking
Garage? We believe we have a
good site for one in downtown
Long Beach, CA.

13. M A R K E T R E S E A R C H
UNCONVENTIONAL ACCESS POINTS
examples in PARKING GARAGE STAKEHOLDER DIALOGUE, cont’d.
Affinity Groups
MEMBER EXCHANGE
EXAMPLE OF

14. M A R K E T R E S E A R C H
UNCONVENTIONAL ACCESS POINTS: CASE STUDY
MARINA OPERATORS STAKEHOLDER DIALOGUE
GROUP PROFILE
GROUP MEMBERS
sample of
initiating DISCUSSION

15. M A R K E T R E S E A R C H
UNCONVENTIONAL ACCESS POINTS: CASE STUDY
MARINA OPERATORS STAKEHOLDER DIALOGUE

16. M A R K E T R E S E A R C H
UNCONVENTIONAL ACCESS POINTS: CASE STUDY
MARINA OPERATORS STAKEHOLDER DIALOGUE

17. M A R K E T R E S E A R C H
UNCONVENTIONAL ACCESS POINTS: CASE STUDY
MARINA OPERATORS STAKEHOLDER DIALOGUE

18. M A R K E T R E S E A R C H
UNCONVENTIONAL ACCESS POINTS: CASE STUDY
MARINA OPERATORS STAKEHOLDER DIALOGUE

19. M A R K E T R E S E A R C H
UNCONVENTIONAL ACCESS POINTS: CASE STUDY
MARINA OPERATORS STAKEHOLDER DIALOGUE

20. M A R K E T R E S E A R C H
UNCONVENTIONAL ACCESS POINTS: CASE STUDY
MARINA OPERATORS STAKEHOLDER DIALOGUE

21. M A R K E T R E S E A R C H
this document utility potential
This document can be
simplified/customized/segmented/tailored
for the following purposes:
• producer education tool
• sales presentation
• information product
(whitepaper, webinar, etc.)
• boilerplate marketing collateral
• supporting material for sales pitch