A modest climate-friendly proposal:

Stop Subsidizing Parking

Economist and Environmental Studies Professor Adam Millard Ball put it simply to the City Council. He demonstrated how much more it would cost to build new parking than the revenue obtainable from that parking.  Revenue from existing parking facilities would need to subsidize the cost of the new parking. That’s revenue that the City could use for any purpose. Millard Ball advised,  “Subsidize what you want more of. Cap the parking. Subsidize the housing.”

Developers of the proposed hotel on Front St (photo) are proposing to build just 15 parking spaces for 150,000 square feet of hotel space. Their plan is for valets to park cars in City parking lots. (Recently City staff report that they will ask the developer to provide 200 parking spaces.) No matter who would use the new parking spaces in a City garage, each new space requires a hefty subsidy.

Cost of parking spaces at new garage

• City estimate for garage cost = $14.5 million for 243 spaces
• Cost per parking space = $60,000
• Net new parking spaces = 108 (243 new spaces less 135 existing spaces on Lot 4)
• Construction cost per net new space = $134,000

• Annual debt service on 30 year bond at 6% = $1,043,000
• Daily debt = $26 per net new space
• Daily cost, adding 10% maintenance and administration = $28.60 per space