EXCLUSIVE: Donald Shoup Talks Parking Policy, OTR Permit Fees With UrbanCincy

Donald ShoupIn advance of his lecture Tuesday at the Mercantile Library, UrbanCincy was able to get an exclusive interview with Dr. Donald Shoup to discuss a variety of issues ranging from Cincinnati’s own parking management efforts, the controversial OTR Parking Permit proposal and how parking reform is changing with the emergence of ride sharing services.

The digital interview took place on Thursday, October 23 and included the following discussion.

John Yung: Last year the City of Cincinnati almost committed to leasing its parking meters and some garages to a private corporation (Xerox) for a lump sum payment and yearly revenue for 40 years. What are your thoughts on cities attempting to lease or sell their parking assets to generate revenue?

Donald Shoup: Like burning all the furniture to stay warm on a cold night, selling a city’s parking meters for an upfront payment to cover current operating expenses is a bad idea. Some cities are considering more farsighted parking contracts that share the annual revenue rather than maximize the upfront payment. A contract with a professional operator who meets performance pricing goals and shares the resulting revenue with the city can give the city two big advantages: a well-managed parking system and a perpetual stream of income.

For example, a city can require its private contractor to set meter rates that keep the curb occupancy rate between 75% and 95% on every block for at least a certain number of hours every day, with penalty payments for failure to meet the occupancy goal. If professional operators can manage parking more effectively and at lower cost than cities can, private contracts with performance goals can be a good deal for almost everyone.

Xerox already manages the prices for on-street parking in downtown Los Angeles, and the program is a great success. Charging the right prices for curb parking produced some surprising benefits. The Express Park program showed that many meters had been overpriced, especially in the morning. During the program’s first year, 59% of the meter prices decreased and only 29% increased. Average meter prices fell by 11% and average parking occupancy increased by 17%. Total meter revenue increased by 2.5%. Parking reform is working well in Los Angeles.

Yung: Cincinnati political leadership is currently looking at increasing meter rates, hours and implementing a residential parking plan for Over-the-Rhine, a neighborhood that is next to the central business district. The residential permits are proposed to be $300 a year, which will be the highest permit price for on-street parking permits in the country if implemented. The neighborhood is very walkable; however, many employment centers and retail destinations are not very accessible by transit therefore many residents of OTR still have to drive.

Do you think that this is a fair market price for a neighborhood in a city like Cincinnati where approximately 10% of the population utilize some form of alternative transportation?

Shoup: The proposed price of $300 a year for a residential parking permit seems chosen to generate revenue rather than to manage parking. It is less than $1 a day, but an on-street parking permit may not be worth even that low price to some residents. I would instead aim for the fair market price, which means the price at which demand equals the available supply.

Yung: The city is currently in the midst of a zoning code rewrite and the topic of parking requirements is up for debate. Last year the city eliminated parking requirements in the CBD and OTR; however, there is little appetite from city leaders and planners to expand the effort to other areas.

In discussions, some developers advocated for parking requirements as a way to protect on-street parking impacts around the University of Cincinnati and other high-traffic commuter areas. They argue that there are not enough parking options in the area and other developers, eager to cut costs by cutting out parking if the requirement is eliminated, would incidentally create more demand for scarce on-street spots for students and visitors.This is similar to a debate in Portland regarding high-density apartments. What would your response to this be? Are there instances where you think parking requirements would need to be preserved?

Shoup: If Cincinnati uses fair market prices to manage on-street parking – the lowest prices that will leave on or two open spaces on every block at every time of the day – it won’t have to require off-street parking spaces for every land use. If the government regulated any other aspect of our lives as precisely as it regulates the number of off-street parking spaces everywhere, everyone would join the Tea Party.

Yung: Futurist seems to be talking about driverless cars as a way to streamline commutes for suburbanites however there is also some discussion on utilizing them as a automated taxi service in cities. What are your thoughts on driverless cars and what do you think their impacts will be on cities and parking reform?

Shoup: I don’t think driverless cars will have a big impact on cities during my lifetime. I do think that Uber, Lyft, Zipcar and the like are already having a big impact.

Yung: Can you elaborate on how car sharing services are impacting the parking demand market in cities?

Shoup: Uber, Lyft, and Zipcar reduce parking demand because they can substitute for a second car or even a first car for some families. Several studies of carsharing services like Zipcar have found that each shared car replaces between 9 and 13 privately owned cars because carshare members reduce the number of cars they own or avoid buying a car as a result of joining. Here is the link to a recent article about how carsharing reduces vehicle ownership and thus parking demand. And here is the link to another article about how dedicating an on-street parking space for a shared car reduces the demand for car ownership and thus parking demand.

Yung: SFpark has been widely discussed as a success in national urban blogs. Do you think this system is the ideal model for ensuring demand driven market pricing for parking in cities? Are there any suggestions that you would make to change or improve this system?

Shoup: SFpark, San Francisco’s new pricing program, aims to solve the problems created by charging too much or too little for curb parking. If the price is too high and many curb spaces remain open, nearby stores lose customers, employees lose jobs, and governments lose tax revenue. If the price is too low and no curb spaces are open, drivers who cruise to find an open space waste time and fuel, congest traffic, and pollute the air. SFpark bases the price adjustments purely on observed occupancy.

Planners cannot reliably predict the right price for parking on every block at every time of day, but they can use a simple trial-and-error process to adjust prices in response to occupancy rates. This process of adjusting prices based on occupancy is often called performance pricing. Beyond managing the on-street supply, SFpark helps to depoliticize parking by setting a clear pricing policy.

San Francisco charges the lowest prices possible without creating a parking shortage. Transparent, data-based pricing rules can bypass the usual politics of parking. Because demand dictates the prices, politicians cannot simply raise them to gain more revenue. Here is the link to a short article that explains SFpark.

Immediately after conducting this interview with Dr. Shoup, it was revealed that many recently constructed parking garages in Portland, as required by law, are now sitting mostly empty.

Dr. Donald Shoup’s lecture at the Mercantile Library will take place tomorrow at 6pm. The Mercantile Library is located less than a block south of Government Square and is accessible by a plethora of Metro Bus routes. It is also located near the Fountain Square Cincy Red Bike station.

State officials in Washington dramatically revise their VMT projections downward

Well, we have been seeing this trend unfold for years now. We seem to have hit peak VMT back in 2007, and have missed VMT projections from departments of transportation for many years. Up until now, that hasn’t affected anyone’s models. Instead many transportation officials have claimed that VMT would bounce back. But in Washington, they have decided to revise their projections to match new realities. More from Streetsblog USA:

The Wisconsin Department of Transportation, for example, has overestimated traffic on its roads by an average of 73 percent, according to a recent study. And Dallas-area planners recently produced traffic projections that predicted a much larger increase in driving than the state DOT was even predicting. That’s why a new traffic forecast from the Washington State Office of Fiscal Management is so interesting: It actually acknowledges how travel habits are changing.

In its most recent financial forecast, the agency has abandoned the assumption of never-ending traffic growth that it employed as recently as last year. Instead, the agency has responded to recent trends, even projecting that total traffic will start to decline within the next ten years.

Beijing to Moscow has better passenger rail service than Cincinnati to Chicago

A route has been identified for a new Trans-Siberian high-speed rail route that would connect Moscow with Beijing. An existing route has been in place for more than 50 years, but takes six days to complete. The new route, by contrast, would complete the trip in just two days. For some perspective, the current Trans-Siberia route (4,350 miles) operates twice per week, which is the same level of service connecting Cincinnati and Chicago (300 miles). More from The Daily Mail:

The project would cost more than $230bn and be over 7,000km long – more than three times the world’s current longest high-speed line, from the Chinese capital to the southern city of Guangzhou. The railway would be a powerful physical symbol of the ties that bind Moscow and Beijing, whose political relationship has roots dating from the Soviet era and who often vote together on the UN Security Council.

Construction Work Progressing on Hamilton’s $11.8M Artspace Lofts Project

From the construction of the Fitton Center for Creative Arts, to aggressively marketing Pyramid Hill, to proclaiming itself The City of Sculpture, Hamilton has been actively reinventing itself as an arts-friendly and arts-centered community since the early 1990s. One of the most recent efforts, however, has been the development of the Artspace Hamilton Lofts, a partnership between Neighborhood Housing Services of Hamilton and Minneapolis-based Artspace Projects.

When finished next summer, the $11.8 million mixed-use development will include 42 market-rate rental units including studios, one-, two-, and three-bedroom options. It will also include commercial and studio space on the first floor for burgeoning local artists.

Since its inception in the late 1970s, Artspace has transformed itself from simply being an advocate for the needs of artists into one of the premier non-profit developers of art-centric residential and commercial space in the United States. From artist cooperatives, to family lots, to non-residential projects, the Artspace Hamilton Lofts will continue their mission of creating unique, historic spaces for artists and arts organizations.

The Artspace project is also indicative of Hamilton’s efforts to reinvigorate its downtown by embracing its architectural past. Beginning in the 1960s and 70s, in an effort to appear more modern and match the neighboring structures that were being constructed, many of Hamilton’s downtown buildings had superficial metal facades installed on them that masked the original architectural details.

Fortunately, two of these surviving buildings, the Mehrum Building and Lindley Block, are in the process of having those metal facades removed as part of the Artspace project. The two properties were selected for the project after an extensive search, for the best location in Hamilton, over the past several years.

According to the Hamilton Lofts project lead, Sarah White, these facades have, in an ironic twist, protected the buildings from the elements over the years. While the structurally important aspects of the two century-old buildings will be left intact, the soft interiors are being completely gutted and rebuilt so that they will function as one.

The project was funded through a combination of public and private sources, including state historic tax credits and the National Endowment for the Arts and the Hamilton Community Foundation.

Project officials say that leasing will begin in the spring, and that those who are interested in applying for one of the residential or commercial art spaces can do so by attending their next informational session on Tuesday, November 18 at the Oxford Community Arts Center.

EDITORIAL NOTE: As part of our efforts to continue to keep you connected with what is happening in the urban areas of our region, we have added a new writer dedicated to covering Butler County’s historic urban cities of Hamilton and Middletown.

David A. Emery, a graduate of the University of Cincinnati’s School of Planning and former Hamilton resident, will be covering these cities in an effort to provide coverage of two other urban centers in our metropolitan region that boast significant populations and were 19th century boomtowns along the Great Miami River and Miami-Erie Canal.

Over many generations, both cities have been pulled into Cincinnati’s cultural and economic influence, and now essentially serve as satellite cities to the Queen City. The both, however, also are interesting places that are dealing with issues of urban redevelopment, diverse populations and changing economies.

What can cities do to roll out BRT faster?

The Southwest Ohio Regional Transit Authority (SORTA) introduced its first Metro*Plus route in 2013. This type of service is often described as “bus plus”, meaning that it has some benefits over standard bus service, but is not quite up to the level of true bus rapid transit (BRT).

According to a recent post on Portland Transport, rolling out small, incremental improvements to bus service (as SORTA has done) may be more effective than focusing all effort into a small number of BRT routes. It may also be the best way to improve bus service while minimizing the number of political hurdles:

Don’t focus on “BRT” as a separate product, just focus on bus service improvements. In much of Europe, there is no “BRT”–the standard for basic bus service (at least on corridors) often involves things like greater stop-spacing, offboard fare payment, larger vehicles with all-door boarding, signal priority, and exclusive lanes (though not necessarily for the entire length of the route). [...]

In many cases, do these quietly, without much fanfare, and without a big splashy project. Big splashy big-ticket projects are more likely to attract political opposition and political opportunism. As Harry S Truman said, “it’s amazing what you can accomplish if you do not care who gets the credit.”