Case puts capital projects at risk

A recent action by the N.C. Supreme Court could put UNC-Chapel Hill’s plans for construction on parking decks in jeopardy.

The court unanimously ruled July 1 that parking fines on UNC-system campuses belong to the public school system.

A trial court now will decide if that ruling will be applied retroactively to 1995.

Carolyn Elfland, associate vice chancellor for campus services, said if UNC-CH is forced to pay parking fines from 1995, it could mean the Arts Common and the Bell Tower will be left without parking decks.

The campus set aside $3.9 million from fines collected since 2001, but $6.6 million more might be needed to repay the prior fines from before that year.

That, coupled with a loss of $1 million of yearly parking fines revenue, means the campus might have to rethink its development plans.

“(We’re) probably not going to be able to afford as many decks as we otherwise would be able to,” she said.

But she and other officials continue to stress that much still needs to be hammered out before the final figures and impact are known.

A date is yet to be set for the case, but Michael Crowell, attorney for the public schools, said a resolution could be reached by early fall.

Money generated from parking fines traditionally goes toward debt incurred on parking decks and the operational costs of enforcement.

Under the recent ruling, UNC-CH can keep up to 10 percent of parking fines to fund collection costs, but all other monies must be turned in.

Elfland estimated that funding collection and enforcement costs $750,000 annually — $650,000 more than the maximum the University could keep.

“We don’t make a profit on parking, so if we lose income we have to get it from somewhere else,” said Leslie Winner, general counsel for the UNC system.

She said campuses might be forced to raise the cost of parking permits to make up the disparity.

“It’s going to shift this cost from the lawbreakers to the law abiders,” she said.

UNC-CH currently is paying debt on the Rams Head parking deck, and three other projects are already underway.

But while many questions remain, Elfland said one thing is certain: Officials must find a way to fund parking enforcement.

“We can’t say, ‘Well we just won’t have enforcement anymore,’” she said. “The whole system would collapse. … We have to look at our budget and see how we are going to afford this enforcement.“

Contact the University Editor at udesk@unc.edu.