Optimismand the Economy Top Temecula ParkingGroup Agenda


BY CHUCK CULLEN AND JOHN VAN HORN


tor has been hurt more than the private, due to the great reduction in property values and the resulting loss in tax revenue.


T According to members of the Temecula Parking Group


(TPG), the economic downturn has had an impact, but parking in general is surviving. The TPG’s members are made up of parking operators, development owners, cities, universities, parking con- sultants and equipment manufac- turers from across the country. Theymeet annually to discuss top- ics that impact the industry. The group was riveted by a


HE PARKING INDUSTRY IS SEE- ing a minor reduction in demand for parking and equipment, although most companies have done well through the past year. The public sec-


are looking for return on their investment dollar. If an operator or a consultant or a vendor approaches an owner, their presentation should include an estimate of percentage of return on the money invested. “If an owner can see a solid 10% or 12% return on money


spent for equipment or operations or improvements in a garage, they will look favorably on the project.They like to speak in per- centages of return investment.” The TPG agreed that certainly the industry doesn’t operate


The problem with the stimulus packages we have seen is that they have unintended consequences.


report from Walter D’Alessio, Vice Chairman of NorthMarq Capital, who discussed the current economic situation through the eyes of a company that finances and develops real estate. He was optimistic. “The problem with the stimulus packages we have seen is


that they have unintended consequences,” D’Alessio told the group. “It’s like those ‘balloon animals’: You squeeze in one place, and something pops out someplace else.Money is provid- ed to the banks to loosen credit, but rules regarding the bank’s capital requirements are changed, which makes offering credit more difficult. As for the economy in general, D’Alessio believes that it is


strong and resilient. “These recessions are cyclic.We have seen it happenmany times in the last 100 years.We have come out with a stronger andmore vibrant economy than before. I can see noth- ing different this time.” D’Alessio stressed that now,more than ever, building owners


in a vacuum. Parking is indeed being impacted by the economy. However, that impact is different depending on the parking gen- erator, the shopping center, ballpark, airport, office building, hos- pital, university or hotel that cre- ates the need for parking. When shopping is down, park-


ing in centers follows. One opera- tor reported that businesswas down 7%in shopping centers his compa- ny operated. However, another reported that theywere full at a hub northern airportwhere peoplewere filling the lots, both on- and off-air- port for spring break.


Parking managers in cities and universities have seen the


pressure turned up on them to generate revenue to replace that lost by decreasing property values.This has been reflected in cita- tionmanagement and increased parking fees. Manufacturers have full order books, but they also have seen


the decision times lengthen, and some projects, particularly in the public sector, be put on hold or canceled due to lack of fund- ing. RFPs are down 5%fromlast year. The economy, however, should not be viewed as an auto-


matic and convenient excuse for the parking professional to blame for a downturn in business.Yes, there are problems with the economy – serious problems – but that economy presents opportunities. Perhaps with some additional advertising, those spaces that


were vacated by the family car could be occupied by others. Per- haps, by adjusting the rates, the volume of cars could increase or


The Temecula Group and themembers of the International Parking Association pose for a group picture. 18 JUNE 2009 • PARKING TODAY • www.parkingtoday.com


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