Eastern Michigan University regents approved a plan Thursday to terminate EMU’s existing parking system contract, repurchase the parking system and settle litigation surrounding the agreement and the unused campus parking garage.
The regents, in a unanimous vote Thursday, Oct. 23, 2025, authorized a debt up to $75 million to facilitate the university’s repurchase of the parking system on campus. In January 2018, EMU entered a 35-year agreement with Preston Hollow Capital, allowing LAZ Parking to operate the system, and paying $55 million to EMU. Provident Group EMU Properties, under nonprofit corporation Provident Resource Group, was assigned as concessionaire by Preston Hollow Capital.
The university closed the parking garage Sept. 25, 2022, explaining in a campus-wide email sent two days earlier that engineering teams needed to begin an assessment of needed repairs. The decision was based in part on third-party engineering reviews that pointed to concerns about the structure's safety.
Per the 2018 agreement, Provident EMU was responsible for making the repairs, a university statement said. When Provident EMU failed to reopen the garage, EMU issued the group a notice of default. In response to the notice of default, Provident filed a lawsuit against EMU, citing a breach of contract. There was dispute between EMU and Provident EMU over the expected cost of repairs.
The parking garage provides 784 spaces, representing more than 8% of the university’s parking system, said a 2023 statement from Walter Kraft, vice president of communications at EMU. The statement said that Provident EMU had the responsibility to maintain and operate the parking garage under the 2018 agreement.
Barriers turn drivers away at the Eastern Michigan University parking garage, which has been closed due to safety concerns since Sept. 25, 2022.
Regent approval allows EMU President James Smith to negotiate and sign a settlement agreement, ending litigation between EMU and Provident EMU.
“An agreement is expected soon under which the university will repurchase the parking system from its concessionaire, bringing an end to the multi-year litigation between the parties,” said a statement issued by University Communications.
Under such an agreement, EMU would regain full control of the operations and finances of the parking system, university officials said in an email sent to the campus community from University Communications.
"The transition cannot occur immediately; instead, it would occur over a number of months,” the officials said in the email. “Upon regaining control of the parking system, the university’s primary goals in the subsequent months will include campus safety, efficiency, and high-quality customer service.”
Some students expressed frustration with current parking options on campus.
“I do park on campus and it’s often hard to find a spot because there’s only three main lots that are accessible to buildings that people frequent a lot,” said commuter student Sarah Ahmad.
Ahmad typically parks in the Science Complex or Oakwood lots. "Last semester, I would literally follow people who are exiting the building to their car so I could grab a spot."
Difficulty finding parking while still budgeting enough time to walk to class can be difficult, especially during peak hours, Ahmad said.
“It’s just such a game of logistics, and it all depends on a parking spot,” Ahmad said.
At the regents meeting, Student Body President Jack Booth thanked the board for taking action on the campus parking system.
“As a student, I commend the board for taking a look into the parking situation," Booth said during the communications portion of the meeting.
