7A - Discussion, Parking Requirements

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Parking Management.,Strategies, Evaluation and Planning Victoria Transport Policy Institute Financial Incentives Financial Incentives means that travelers (particularly commuters)are offered financial benefits for reducing their automobile trips("Commuter Financial Incentives,"VTPI, 2005). These benefits represent the cost savings that result from reduced parking demand. There are various types of incentives.Parking cash-out means that commuters who are offered subsidized parking can choose cash instead. Transit benefits means that employees receive a subsidized transit pass. Universal transit passes means that a group purchases discounted,bulk transit passes for all members. Another incentive is to provide discounted or preferential parking for rideshare(carpool and vanpool)vehicles. Consumers value these options because they provide positive rewards for those who reduce vehicle trips and parking demand. Financial incentives such as transit benefits and parking cash-out typically reduce automobile travel 10-30%, depending on the value of the incentive,and various factors. In urban areas commuters tend to shift to walking and transit. In suburban areas they tend to shift to cycling and ridesharing. These programs have been particularly successful at college and university campuses. Unbundle Parking Unbundling means that parking is rented or sold separately,rather than automatically included with building space. For example,rather than renting an apartment with two parking spaces for$1,000 per month,the apartment would rent for$800 per month,plus $100 per month for each parking space. This is more equitable and efficient, since occupants only pay for parking they need. Parking can be unbundled in several ways: • Facility managers can unbundle parking when renting building space. • Developers can make some or all parking optional when selling buildings. + In some cases it may be easier to offer a discount to renters who use fewer than average parking spaces,rather than charging an additional fee.For example,an office or apartment might rent for$1,000 per month with two"free"parking spaces,but renters who only use one space receive a$75 monthly discount. • Parking costs can be itemized in lease agreements to help renters understand the parking costs they bear,and to help them negotiate reductions. + Informal unbundling can be encouraged by helping to create a secondary market for available spaces.For example,office,apartment and condominium managers can maintain a list of residents who have excess parking spaces that are available for rent. 20