POINT OF VIEW


Banks, Courtesy and Free Parking


BY JOHN VAN HORN H


ERE’S A TAKE I HADN’T CON- sidered:What if banks wouldn’t lend on a development if the number of parking spaces didn’t meet the indus- try average – even if the local zoning


requirements had been removed and the number was- n’t required?


Developers are being caught in a “Catch 22.” Cities are fol-


lowing the lead of Shoupistas and removing parking require- ments on development to assist in getting new buildings going in downtown areas. This helps in development, and certainly in attracting “sustainable” businesses into the areas. It makes sense in every way, until the developer goes to get his loan from the banks. Here’s the banker’s quote, as reported in a Salt Lake


Tribune story: “We’re not going tomake a loan without getting comfortable


with the parking element and the parking strategy,” saysMichael Morris, ExecutiveVice President of real estate for Zions Bank. Other factors besides parking ratios also play a role, he says,


including the overall economy and the mix of equity and debt. Construction lenders could be “flexible” and approve tran-


sit-oriented projects, Morris says, so long as long-term lenders are content. But he predicts parking at housing units, regardless of location, likely will remain a premium. “I don’t know if public transportation or fuel efficiency or


the green movement is going to change that in the near term,” Morris adds, before pausing. “As a corporation, we’re open- minded and will participate in the dialogue. And we’ll do what makes sense.” Sure, it sounds as if they can be “flexible.” But just show up


with a parking spaces number that doesn’tmeet their requirement and see what happens. Think about the problem with housing units. By reducing


the number of required spaces, the developer can unbundle parking from the building and lower the cost for housing. Peo- ple who live near their work can forgo a vehicle, and all is right with the world. Not going to happen if banks have their way.The newspaper


article goes on to say that cities and developers are in an ongoing educational process with banks, but it is slow. Just another problemin dealing with the recession, develop-


ment and financing. ***


And I quote fromanAssociated Press story: “La Crosse police are trying to be friendly to visitors of this


westernWisconsin city during the height of fall tourism. Lt. Pat Hogan says the department is issuing visitor-friendly ‘courtesy’ parking tickets to first-time overtime parking violators.


6 DECEMBER 2009 • PARKING TODAY • www.parkingtoday.com “MayorMatt Harter says the city can help downtown busi-


nesses by giving first-timers a break, along with providing as much parking as possible by enforcing existing rules. “Since Oct. 4, community service employees have written


454 warnings, or about 18 a day. Of those, 306 were in down- town La Crosse. Previous violators still have to pay a $12 fine, after a $4 increase approved inMarch.” Well, duh – I have been railing about this solution for years.


It solves all PR problems and follows the rules as well. This is just crazy ... Dewey Beach in Delaware is con-


cerned that their increase in parking fines might drive people away. The logic is that higher fines mean people won’t come to park there. Let me attempt to parse this. I want to go to the beach. I


somehow find that the fine for improper parking is $50. I guess I plan to park improperly when I start out, so I decide to go some- where where I know parking fines are cheaper so I will have to pay less. Are they nuts? Is there anyone on the planet who actually


starts out going to the beach, or anywhere on vacation for that matter, bymaking the decision based on howmuch theywill have to pay when they get a parking ticket? Giveme a break. If the fines are onerous, fine, lower them. But arguing that


people don’t come because they are too high… Fromthe article on delmarvanow.com, it seems as if there is


no indication that, in fact, over the past two years, there has been a reduction in people coming to Dewey Beach for any reason. And…as correspondent Mark points out: They are con-


cerned that the parking fines are “unfriendly.”Atwhat point does a parking ticket become “friendly”?


*** “Free parking is the prime reason (that) malls have grown so


mightily over the years. Predatory parking enforcement in the downtownsmight prove the death knell for a greatmany smallmer- chants there unless it’s checked. Parking tickets are no small things for these enterprises. It’s really about time (that) this economic threat is recognized—and acted upon.” The quotes above, from a columnist at TheModerateVoice


blog, are typical of knee-jerk reaction to the reasons thatmalls have grown and downtowns have atrophied.Of course, this is absurd. In LosAngeles, for instance, the two newest major malls in


the city (TheGrove andAmericana at Brand), plus twomajor suc- cessful existing malls (Century City and Beverly Center), all charge for parking. That hasn’t kept people away. They come because there are reasons to go there. Downtown SantaMonica’sThird Street Promenade is hugely


successful, and its six parking structures charge for parking. People go to the beach, but the county charges for parking. People go see the ballgame, the Hollywood Bowl, Disneyland, Universal – they


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