
The Seattle Times writes about another example of a US city considering removing the rules that require certain amounts to parking to be provided by new businesses and buildings. A post on the excellent Portland Transport blog discusses the Seattle article and similar rules in Portland - be sure to scroll down to read the comments on the Portland Transport blog posting, as there is excellent discussion of the pros and cons of this “market-based” approach to parking requirements.
I think much of the debate on this topic centers, fundamentally, around a single factor - our relative willingness to tolerate time-lag, and thus “money-lag”, in addressing parking issues. Let me explain: In the traditional world of parking requirements, we try to solve problems before they occur, but we spend more than is generally required to do so. Parking requirements are “calculated” (I’m being generous with that term) to provide sufficient parking for the related building users at almost all times. This means building more parking that is typically consumed - as noted in the Seattle article, parking requirements for grocery stores were set about 50% higher than the observed usage. In this traditional parking requirements approach, there are rarely problems of insufficient parking (instead, there are more typically problems associated with too much parking) and the parking “problem” caused by the new development is solved before the development opens its doors.
In the new marked-based approach to parking, where requirements are removed and developers or business owners are allowed to decide for themselves how much parking to provide, we face a different time-lag issue. I believe that as market-based approaches proliferate, we’ll see some problems related to insufficient parking. On the Portland Transport blog a commenter notes this has already happened in their neighborhood. Those problems will, inevitably, be solved as time goes by - either parking will be provided by for-profit parking operators, drivers will shift to other modes, or the business that generated the parking demand will depart the area. All of these solutions, however, face a time-lag issue - they can only occur AFTER the parking problem has manifested itself. On the other hand, these solutions have a major “money-lag” benefit - they didn’t require spending on “predicted” solutions before the problem was apparent, and they’ll probably be more efficient uses of capital once the solutions are implemented. Why more efficient? Partially because they simply occur later (a dollar spent 3 years from now will be cheaper than a dollar spent today), and partly because the solutions will be much better matched to the problems (ie the grocery store won’t build 3 spaces when only 2 were needed, they’ll build 2, thus saving that 1 space’s cost).
So, the debate in the parking requirements vs marked-based approach should really be around what level of time-lag, between problem identification and solution implementation, are we willing to tolerate, which is another way of saying what level of wasted investment are we willing to tolerate. So, what level are you willing to tolerate?