Category Archives: parking

Parking evidence

“If restraints on the parking supply really did limit economic vitality, one would expect to find some evidence, but there is none” Page 558 Christchurch – Central City Technical Appendices E-P01

If increased parking supply really did attract more pedestrians, one would expect to find some evidence, but there is none. (Page 35-ref.1)

It is then suggested that “increased commercial car park capacity indicates a shift from pedestrian to car-based access to and around the centre” (Page 35-ref.1.) One would expect to find some evidence, but there is none (the Vehicle Count is in the Hamilton central area only).

Maybe a 6-lane road (4 for car movement lanes plus 2 lanes for car parking) on a sunny day would make an attractive place. One would expect to see some evidence.

If free parking at competing retail locations stopped people going to places where they pay upfront for parking, one would expect to see some evidence. Here I’m suggesting the 2007/08 GFC reduced car use, which reduced CBD parking revenue.

Sorry, one more graph:  below we see the effect of changing retail locations. Note: only the CBD charges parking as a separate cost, so in 2005/06, Rototuna and the Base came alive but the CBD didn’t have a step change in sales until about 2010, as The Base was investing in more retail space.

To finish, here is a link to a report titled ‘Hamilton’s retail economic effects associated with the Base’ (Page34-Ref:2)

“13.33) [Paul P Keane] view is that a large proportion of the sales would have been lost to Hamilton. They would either not have been made at all – that is, households would simply spend less on retail – or they would have been made in other cities instead, such as Auckland, Tauranga or Rotorua, resulting in outwards leakage.

13.34) By creating The Base as a regional centre, Chartwell as a community (or sub-regional) centre, and Centre Place as the retail heart of the CBD, the opportunity for customers to do their shopping in Hamilton was far more likely than those sales going elsewhere, or not going anywhere.”

Ref: 1 – EPA Ruakura Economics Philip McDermott

Ref: 2 – Hamilton PODP Hearing Business Zones Mon4Nov2013 P Keane Evidence TGHL

 

Category: CBD, News, parking

Parking Building Economics

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If the value of a car parking space is greater than the cost of supplying the car parking space then private investors will provide parking. Should politicians use ratepayer or/and taxpayer money to subsidize and/or oversupply car parking, the value of a car parking space will fall, but the cost will not.

This post is based on parking building economics as explained in 1973 as an appendix to the Traffic management plan for Hamilton.

To try make this relevant in today’s money the Value in [$—] is in today’s money as per the Reserve Bank Inflation calculator, using the following settings.

Category – General (CPI)

Date of cost above – 1973 Q1

Date for comparison – 2017 Q1

Traffic Management Plan for Hamilton Report No.3 – Central Business Area (CBA) Off-Street Parking – REF 0711 730 993 115 1 HAM – April 1973

Appendix II – page 16

Parking Building Economics

The following is an approximate estimate of the economics relating to the construction of a 500 car parking building within close proximity to the city centre as suggested in the Transportation Study Planning Report.

  1. Cost

(a) Capital Cost

A parking building will cost about $2,500 [$31,030] per car space (excluding land). A 500 space building would therefore cost $1,250,000. [$15,515,845]

(b) Operating Costs

It is envisaged that operating costs and costs for such items as maintenance, lighting and insurance would be in the order of $75,000 [$930,950] per annum.

(c) Annual Costs

Annual cost of a building would be:-

Loan Charge and servicing (10% p.a) $125,000 [$1,551,584]

Operating Costs                                        $75,000 [$930,950]

Total $200,000 [$2,482,535]

  1. Revenue

The revenue required for a building to be self-supporting with an annual cost of $200,000 [$2,482,535] would be approximately $1.60 [$19.86] per space per day.

To collect $1.60 [$19.86] per space per day, based on a 10-hour day and a maximum operational occupancy of 80%, it would be necessary for the parking charge to be 20c [$2.48] /hour

Note that the existing Central Car Park has an occupancy of 65% and revenue of 45c [$5.59] /space/day (1972/73 receipts)

Now in the real world of this century some of the above costs are not like-for-like:

(1)   The VALUE or COST per car space this decade is more like a third less at about $12 or $20k, giving a 500 space building a cost of $6 or $10 million. – source

(2)   The Annual Cost of servicing a loan at (6% p.a.) = $360k or $600k plus Operating costs of $930k = Total of $1,290 or $1,530k divided by 500 spaces = $2,580 / $3,060 per space per year.

 

(3)   Revenue needed to service a loan of $2,580 or $3,060 per space per year is $10.32 or $12.24 per day. (Based on 250 days)

To collect $10.32 or $12.24 per space per day, based on a 10-hour day and a maximum operational occupancy of 80% it would be necessary for the parking charge to be $1.29 or $1.53 per hour

 

This is pretty close to the cost of parking at the Knox street Parking building.

EARLY BIRD PARKING

$7.00 flat rate
Entry between 4:00am and 10:00am
Exit before 7:00pm

CASUAL PARKING (BEFORE 6PM)

0-1 hour $3.00
1-2 hours $5.00
2-3 hours $7.00
3-4 hours $9.00
4-5 hours $12.00
Daily Max $12.00 (12 hour ticket)
Lost ticket $20.00

EVENING PARKING (AFTER 6PM)

$5.00 flat rate

SATURDAY AND SUNDAY

$5.00 flat rate