The National Development Council closed its $32 million parking system transaction with Scranton, Pa.
NDC, through its public-private partnership affiliate Housing and Economic Development Corp., completed negotiations on Aug. 30. The transaction involves six parking structures and all on-street parking meters in downtown Scranton.
Citi sold the 45-year tax-exempt bonds the Scranton-Lackawanna Health and Welfare Authority issued on behalf of NDC. Housing and Economic Development will pay the city the $32 million upfront, and all proceeds beyond operating expenses, debt service, and capital repairs and replacement will be returned to the city through grants.
Scranton, the 77,000-population seat of Lackawanna County in northeast Pennsylvania, will reclaim parking system ownership after debt payment.
The transaction marks the latest step in capital markets assets for Scranton, where the City Council in 2012 defaulted on a parking authority bond payment. The city has since paid that debt.