Without a parking deal, Harrisburg's court-approved plan and pending fiscal recovery would be obliterated. Receiver William Lynch said there's a current snag in the deal after a major partner backed out.
Selling Harrisburg's parking system is the key element in dissolving the city of more than $600 million in debt. On Wednesday, Receiver Lynch said AEW Capital Management is no longer involved in the process.
Without this asset sale, Harrisburg Strong—the city's court-approved recovery plan—could fall through. Lynch's team met Wednesday afternoon to talk about replacements.
Lynch released this statement to abc27 News:
"AEW made a business decision not to continue with this public, public parking transaction. Their main focus is on public pension, private equity investments. This is more in the category of an annoyance rather than a disaster. We are exploring options."
This isn't the only problem the parking deal is facing. The Harrisburg Strong plan also relies on a favorable bond market, which is currently stable. However, Receiver Lynch said last week a long-term government shutdown could cause unstable markets, which could prove problematic for Harrisburg.
Harrisburg Strong bases the 40-year lease parking deal on obtaining a $260 million tax-exempt bond. For the moment, Standard Parking remains firm in the deal. Receiver Lynch is looking for another partner to quickly catch on.