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[[underlined]] Mall Underground Parking [[/underlined]]

Mr. Ripley reported that the Smithsonian staff is continuing to review the early development of Mall underground garages as the most useful solution to the visitor parking dilemma. A study completed for the Institution last year presented a parking development program designed to provide staged construction of 3,200 parking spaces beneath the center treeless panels of the Mall. Phase I of the proposed development would provide 1,400 spaces between the 12th and 14th Streets at an estimated cost of about $11-12 million under federal financing and $13-14 million with private financing. The additional $2 million represents an eight percent capitalized interest charge for the estimated two-year construction period.

After numerous discussions with the firm preparing the study report, the Smithsonian has arrived at a preliminary concept to finance Phase I of the underground parking development plan without the use of federal funds. This lease-purchase concept for a turn key project would involve financing, design and construction using private funds. The company's projections indicate that revenues from parking fees could amortize the development costs over a 35-year period. They have investigated, on a preliminary basis, whether potential lenders would be interested in this type of venture. From all indications, it seems possible to acquire private financing, and several contractors have indicated