Downtown Parking as an Asset, Not a Barrier
Written by Doug Neumann
President & CEO of the Cedar Rapids Downtown District
As seen in the Opinion Column of Corridor Business Journal, December 6-12 Edition
The very first challenge from my downtown bosses was to
make the parking system an asset rather than a barrier to downtown economic development. The directive was written into a contract between the Cedar Rapids City Council and the Cedar Rapids Downtown District and was part of the promise made to downtown property owners when they renewed a self-imposed taxing district.
No one talked about how that would be done. It was clear only that the parking system needed improvement, and that it was a top priority of downtown leaders to get it done.
The City Council and the Downtown District co-funded and collaborated on development of a strategic parking plan to accomplish the goal and then agreed on a series of action steps designed to accelerate economic development, protect taxpayers, reinvest in the parking system and ultimately
take the complication and controversy out of downtown parking.
At the core of that plan is the transfer of parking management oversight from the City to the private, non-profit Downtown District, a measure that could be considered by the City Council this month as part of a parking lease agreement.
The system is already partially privatized. A private company has been handling day-to-day operations in the downtown parking system since August of 2009 (and at the airport for many years) and would continue to do so under the new arrangement.
The parking system will remain a publicly owned asset. It’s not being sold as in some other U.S. cities, nor is it being leased long-term, as in Chicago where an out-of-town, for-profit entity will control parking meters for the next 75 years. The lease contemplated in Cedar Rapids has 4-year renewable terms, with several provisions for the City Council to resume parking management, if it chooses.
The Downtown District will not take any management fee for its work. The lease mandates that every penny of net revenue be reinvested into the parking system, for economic incentives the City could use for new or expanding companies, for long-overdue repairs to parking facilities, or for innovations in technology and customer service amenities that are common in other communities.
The Downtown District’s proposed parking budget generates $300,000 in net revenue in the first year through lower labor and operational costs coupled with initiatives to grow the number of parkers. That would reverse a nine-year streak of operational losses for a once-flush parking system that will exhaust its last cash reserves this year. The status quo means a continued decline in the parking system and almost certainly means tax dollars would be needed to cover any ongoing operational losses.
Lower labor costs have been a point of contention for some,
but these will still be good paying jobs. Six City employees working in the parking system will be offered their jobs back with health, retirement and wage packages exceeding national industry standards and ranging to more than $50,000.
The wage discussion came amid a six-month negotiation with City staff on details like who plows the snow, how often the books are audited and how new parking ramps will be financed. The lease also sets out performance measures that hold the Downtown District accountable to initiatives such as growing the tax base and filling commercial vacancies.
While it’s good to have those details hashed out, it’s the bigger picture that has downtown leaders united and excited about this potential change.
They have tried for too long to manage properties, grow businesses and attract people while always having to make an excuse for downtown parking. They need parking to be available, convenient, affordable and customer friendly enough that it’s no longer a barrier to economic development.
Transferring management oversight would be bold change, and this is a big decision for the City Council. But they have recognized the same things, and have worked hard to improve economic development.
This change is driven by public opinion and economic need – and embodies collaboration and innovation to better the community.
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