Finding the funds when you really do need more parking
Effectively managing the existing parking supply and providing other travel options besides the single occupant auto should be the first options for providing access to any commercial area. However, sometimes additional off-street parking is necessary to support an existing business district or planned future growth. There are local options, state programs, and private responsibilities that can be used to pay for construction and operation of a public parking surface lot or garage.
Providing off-street parking can be expensive. Construction costs per space can range from roughly $1,500-2,000 per space for surface parking in suburban areas to over $20,000 for underground parking in urban areas, not counting land costs, which can be substantial, especially in urban areas. Annual operation and maintenance costs can run from $100-500 per space. All told, the annual costs per parking space can run from roughly $400 a year for suburban surface parking, over $1,200 a year for a 2-level suburban structure, to over $2,000 for an urban parking structure. In addition to the direct costs of building and maintaining the spaces, parking takes up space that could otherwise be used for additional commercial space or housing; incurs environmental costs including increased stormwater runoff and pollution and heat island impacts; and costs to the transportation system from its impact on the relative appeal of driving versus alternative modes. These costs should be recognized and balanced against the benefits parking provides in driver convenience and access.
Where to build a surface parking lot or a parking garage depends both on the number of spaces needed and on the value of land where you are building. One study suggests that land must be valued at $1,000,000 per acre or more for a garage to be cost-effective. A parking study can help you determine how many new spaces you need. Several hundred new spaces at a minimum should be needed before you consider a parking garage. While a garage may cost 10 times what a surface lot will cost, the extra land made available by a smaller garage footprint can bring in considerable sales and tax revenues to the community. In some communities the first floor of a garage contains retail uses which can also produce rental revenue for the community. Garages also typically have the additional environmental benefit of a smaller paved area and reduced rainwater runoff.
