Nashville has selected a private company to take over its on-street parking operations.

Mayor David Briley's administration notified LAZ Parking Georgia LLC on Wednesday that the city plans to hand it the management of the city's parking spaces.

The company will issue tickets, collect fines and issue permits for valet parking, loading zones and street parking in residential areas on behalf of city officials.

"“We are pleased to have been selected to work with Metropolitan Nashville and the Metro Council to undertake this important strategic initiative for Nashville," LAZ Parking Chief Executive Officer Alan Lazowski said in a statement Monday.

"In a city that is booming like Nashville, utilizing technology to achieve more vehicle efficiency should be fundamental to advancing mobility," he said, adding the group looks forward to working with Metro Council and the community to address in details how the system will improve the city's on-street parking.

The deal, officials say, means more than $325 million for Nashville over a 30-year contract.

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But how does that break down? What is the city getting, and what does the private group get in exchange? How does going private influence meter rates, and where will 2,000 new metered parking spaces go?

The deal isn't finalized, with contract negotiations still underway between LAZ Parking and city officials. It would then need to be approved by the Traffic and Parking Commission and the Metro Council.

But here's how they hope this plays out, according to the parking proposal.

$325 million to Nashville

The city anticipates taking in about $325 million by the time the deal expires in 2049.

$34 million: Upfront payment in two installments in the first fiscal year.

$72 million: The aggregate of the annually guaranteed payments, including inflation, beginning in the third year.

$214.4 million: Total revenue share.

$4.6 million: Excess revenue that will be placed in a reserve account until end of contract.

LAZ Parking will be paying for all capital and operating costs related to parking meters, according to the proposal. In addition to the $34 million, in the first two years the group will pay $6.2 million to fund the capital expense reserve and $1.5 million to operating expense reserve.

The group will replace meters and pay stations every 10 years, or sooner on a case-by-case scenario.

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LAZ Parking is anticipating making $113 million from the deal. The revenues will be split 50/50 annually until likely 2035, the plan shows, when the group is anticipated to make back its initial investment and reach a 9.75 percent internal rate of return on capital annually.

That would trigger a flip so Metro would then get 90% of revenue until the end of the contract.

What about meter rates?

There will be an initial 25-cent increase for meter prices starting in 2021. That means meters will cost you $2.25 per hour in downtown Nashville and $1.75 per hour elsewhere in the city.

According to the proposal, the rates could increase annually based on inflation.

If rounding up to the nearest 5 cents, in 10 years meters could potentially cost $2.80 per hour downtown and $2.15 per hour elsewhere. By the end of the contract, it could be $4.20 per hour downtown and $3.20 per hour elsewhere.

But Metro's Traffic and Parking Commission has previously discussed the possibility of implementing dynamic pricing for parking — a move seen in cities like San Francisco and New York City.

The idea? No two parking spaces are necessarily equal. No static pricing, and fees would be set based on real-time demand and available parking space.

It's rooted in the goal of getting drivers off the streets and into a space as quickly as possible with prices going down in other low-demand areas.

But it could also mean empty spaces if higher prices during peak demand deter some drivers.

Where will new meters go?

The city will create an additional 500 spots a year for at least four years — doubling the 2,000 spaces it currently has. They are slated to pop up in the Gulch, West End, SoBro and downtown.

Metro's Traffic and Parking Commission would retain control over policy matters on rates, enforcement and potential expansion.

Currently, Public Works sets up meters, with the approval of the commission, after an engineering and traffic investigation is conducted to show that installing the meters is "necessary" and a good fit for the area.

Any new spaces added under the proposed agreement, the Briley administration says, will have to be approved by the commission with input from residents and businesses. But how officials plan to gather community feedback remains unclear.

The Nashville Area Metro Planning Organization conducted a parking study in 2017 to find potential meter expansion areas. It found the possibility for 389 paid parking spots in Five Points, 215 spots in 12South and 34 spots in Eighth Avenue South. It also shows potential for more meters in The Nations, Sylvan Park, Midtown, Music Row, Hillsboro Village, Green Hills and Germantown.

The Traffic and Parking Commission is set to take up this matter at its next meeting on May 13 at 3 p.m. at the Sonny West Conference Center in the Howard Office Building at 700 Second Ave. S.

What do you think about Metro's private parking deal? What questions do you have?

Yihyun Jeong covers politics in Nashville for USA TODAY Network - Tennessee. Reach her at yjeong@tennessean.com and follow her on Twitter @yihyun_jeong.