With respect to Rover's point about Chiofaro making money hand over fist from the garage, below is the revenue and expense summary for the Common garage last year. This garage has 1350 spaces.
Common garage operating revenues were $11.9 million, operating expenses were $5.1 million. Average revenue per space was $23 a day, 365 days a year. 'Profit' was $6.8 million. That is making money hand over fist.
Assuming that Chiofaro's similarly sized garage also generates around $12 million a year in operating revenue, his expenses are higher. He is paying $3 million in property taxes that the Common garage doesn't pay. He is also paying interest on the financing note. The last note for which there was public information was for $120 million or so, IIRC. (This was the second five year note; the amount lent for the second note was $5 million more than the first note in 2007.) $120 million at 4 percent annual interest is an annual interest payment of $4.8 million, with no payment of principal. The Common garage apparently incurs no expense for financing; i.e., its already paid for.
Where the Common garage generates $6.8 million in profit, Chiofaro's garage, because of property taxes and interest payments, would lose money even with $12 million in operating revenue. True, the Harbor garage generates some income from the lease of the retail space, but x number of spaces in the Harbor garage are set aside, through an easement, for the condo owners at HT, i.e., these HT residents have a property right to those spaces until the easement expires (around 2020 or 2021, IIRC). The number of units in HT is apparently over 600. If half these units have a space in the garage, that is 300 spaces for which he is getting less than $23 a day. His retail income is likely offset by the discounted cost to HT residents for their spaces in the garage.
