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Parking Management

Pricing Strategies

Introduction

Managing the availability and price of parking, especially in crowded, high-activity areas, can reduce congestion on the surrounding roadways. Encouraging transit, carpools, or vanpools also reduces the number of vehicles on major roads and city streets. Parking management strategies must be a mix of ideas that are supported by the affected businesses, workers, and communities.

Regions can use several different techniques to control parking:

  • Performance-based parking pricing.
  • Altered city/state ordinances that decrease minimum parking requirements, set a maximum parking requirement, or issue permits.
  • “Cashing out” to provide cash rewards rather than parking spaces.

Executive Summary
Performance-Based Parking Pricing
By viewing parking as a commodity rather than required infrastructure, cities and developers can employ performance-based parking pricing. This strategy uses various pricing schemes, permits, and restrictions to maintain a desired level of parking spaces.

Minimum Parking Requirements and Permit Regulations
City and state rules often have minimum parking requirements and permit regulations for certain areas. Altering these rules to decrease the minimum amount of parking required, or setting a maximum level of parking spaces, limits parking availability and can increase transit and carpool usage.

Cashing Out
The cashing-out parking strategy provides cash rewards for employees to pay for parking, purchase transit tickets, or save for personal use. This method of paying money rather than providing parking can reduce available parking and encourage alternate modes of transportation.


Target Market

Parking management strategies work well in areas where:

  • Parking is limited (and generally not free).
  • Transit service or carpooling options are available.
Downtown or Other Crowded Activity Centers with Transit Service
Crowded downtown and heavily visited areas often have a limited number of parking spaces. This causes congestion for commuters and visitors. One solution is to offer an off-site parking lot with a shuttle to transport people to their destination. Providing remote parking along with increased transit service, alternative forms of transportation may be viable for a larger population.
Locations with Little or No Parking
Limited parking causes congestion because drivers circle looking for an available spot. Managing the amount and price of parking in these locations, in addition to real time information on availability, allows the public to make more informed decisions about their route, timing, and even transportation mode for different types of trips.

 How Will This Help?

  • Reduces congestion by increasing carpooling and transit ridership. Limiting parking spaces or raising costs will cause some people to not use a personal vehicle. Commuters may carpool or use transit to save the money and time needed to park their own vehicle.
  • Saves the city money. These techniques do not require additional infrastructure. In addition, adding pay-to-park lots and increasing prices or taxes may increase the collected revenue, offsetting the project cost to the city.
  • Helps avoid future congestion issues. Reviewing parking requirements and management plans allows communities to develop alternate forms of transportation to reduce the need for personal vehicles and provide alternative options for short trips within an area.

Implementation Examples

 

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Application Techniques and Principles

Parking management strategies are often applied in downtown areas or activity centers with high land value and strong economic development. Typically, the nearby land:

  • Does not have the space to offer additional parking.
  • Requires structured parking with high costs.
  • Is controlled by parking limitations from the local government.
A well-planned parking management strategy often results in better use of existing facilities and reduces the need for more parking. It is important to not compete with the transit, carpool, and vanpool systems by offering too much parking. Organizers should determine if current parking is well used and if the transit, pedestrian, and bike facilities can handle the new users caused by parking management strategies.
Limiting the available parking and raising the cost of spaces tend to discourage long-term parking—the primary goal of a parking management strategy. After limiting available parking, city and business managers should provide special rates and parking for carpoolers. City planners, employers, and property owners should create parking agreements and zoning regulations that control parking in new developments to prevent future problems.

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Issues

Most parking management strategies require policy or legislative changes, which can be difficult. The city needs support from the private sector to implement and market these changes and to create incentive programs.

Taxes should be high enough to persuade commuters to use alternate modes, but making them too high can cause businesses to move to other areas.

Ample and visible enforcement is needed to ensure compliance. If too many vehicle types are exempt or appear to get away with not following the parking policies, other users will consider the parking management strategy unfair and thus a failure.

Project Time Frame

Parking management plans can be implemented quickly and adjusted over time. Parking tax increases and other legislative techniques depend on the time frame allowed by the state and local governments. Other parking management methods (i.e., limiting available spaces, raising fees, and cashing out) can be implemented almost immediately.

A typical parking management strategy is implemented in two to six months if all the necessary policies and regulation changes are in place. Creating and installing appropriate signage and employing a public awareness campaign are two of the most important factors in a parking management plan.


Who Is Responsible?

Cities and private companies are primarily responsible for controlling parking in the downtown area and other crowded activity centers. City officials should review current parking standards to determine if the minimum parking requirements can be lowered. Business managers should examine the parking at their locations and offer incentives for employees to use transit and carpool services. Although plans are dependent on local government, the Texas government can introduce laws and taxes that promote alternate modes to support parking management strategies.

Cost

Parking management methods do not require large amounts of money to implement. Funding is often used for signs, administration, and enforcement. Developing a typical parking management plan can range from $100,000 to $500,000, depending on the physical size of the area and the number of parking spaces to be included. Some site-specific designs and concerns such as historic locations may increase the cost.


Data Needs

Parking management strategies primarily require two types of data for evaluation:

  • Parking inventory and usage.
  • Available parking facilities and spaces.

Parking Management Best Practices

  • Type of location: Downtown areas, central business districts, and crowded developments where parking is limited and shared by multiple businesses, tenants, and visitors.
  • Agency practices: Coordinate with planning, design, development, and enforcement agencies.
  • Frequency of re-analysis: Monthly during the initial launch; quarterly and annually thereafter.
  • Supporting policies or actions needed: Possible changes to city ordinances regarding parking space counts, enforcement, and authorization to proceed.
  • Complementary strategies: Compressed work weeks, dynamic infrastructure pricing, real-time ridesharing, carpooling, telecommuting, and vanpooling.

For More Information

Crawford, J. A., T. B. Carlson, W. L. Eisele, and B. T. Kuhn. A Michigan Toolbox for Mitigating Traffic Congestion. Texas A&M Transportation Institute, The Texas A&M University System, College Station, Texas, September 2011.

Texas A&M Transportation Institute. Mobility Improvement Checklist: Managing Demand, Vol. 1. The Texas A&M University System, College Station, Texas, September 2004.

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