A few of downtown's largest property owners are expressing concern about downtown parking policy. It is a battle over philosophies and they believe the future of downtown is at stake.
In one corner are James T. Sandoro, Stephen Fitzmaurice and Mark Croce, owners of numerous downtown properties and thousands of parking spaces, who believe misguided parking policies are killing downtown. Others see it differently saying affordable downtown parking is the key to bringing new tenants, retailers and additional events to the center city.
The differing opinions are coming to a head as the contract to manage City-owned parking lots and ramps has expired and a recent study suggesting downtown needs more ramps is raising eyebrows.
Ramps Are Full
Many of downtown's ramps are full with waiting lists. With parking critical for downtown employers and their workers, full parking ramps hinders business retention and attraction. When potential tenants shop for space and find that most ramps have waiting lists, the tenant is likely to look elsewhere. That is oftentimes the suburbs.
Downtown commercial property owners lose tenants quite often because of parking. "We are hurting ourselves because the ramps are full," says Stephen Fitzmaurice, Chief Operating Officer of Seneca One Realty, owner of One HSBC Center.
"Downtown businesses do not need free parking, they need access to parking," says Fitzmaurice.
A recent study by Desman Associates pointed to a parking shortage and described a need to construct four new downtown ramps at a cost of $80 million on property the City does not currently own. Business is so good that the operator of the City-owned ramps and lots expects to have a surplus of $3 million this year and $4 million next. "We are literally at capacity," says Buffalo Civic Auto Ramp (BCAR) Executive Director Kevin Helfer. Those profits are funneled into the City's General Fund.
Some do not see the significant surpluses as a sign of success. According to the downtown property owners and advocates that addressed the Board of Parking on July 1, the ramps are full because the Board has kept downtown parking rates "artificially low" for years.
"The system has done better than any other city in New York State," says Helfer.
Nonsense says restaurateur and developer Mark Croce. "No other city has modeled our system where a non-profit operator runs municipally-owned parking facilities," he says.
"If the facilities are run like a private business, being at full-capacity is equal to failure," says Croce. "Waiting lists do not encourage business downtown."
Low parking rates are resulting in high occupancy. Raise the rates and drivers who are price sensitive will look at alternatives to driving, or will park on downtown's fringes. That will open up and turn-over parking spaces while negating the need to build new ramps.
Croce points to the recent spike in gas prices as being a benefit to downtown, and suggests that raising parking rates will have a similar impact. "People didn't quit their jobs, they still found a way to work." Some people walked or biked, others car-pooled or took mass transit. "The reduced demand from commuters resulted in opened spaces in parking lots," he says.
Rates Vary
"Existing parking rates in BCAR ramps don't make sense on several different levels which contribute to this perception of limited supply," says Fitzmaurice. Surface lots on the outskirts of downtown are empty yet plans are being drawn to create more spaces.
"Parking rates vary throughout the BCAR system," says Fitzmaurice, this would seem to indicate that they're priced according to demand. Yet the HSBC Ramp is priced 21percent higher than the Turner Ramp which is in a study area alleged to be under capacity, the government office area."
"Rates should be unified and equitable across the board," says Croce.
Adds businessman James T. Sandoro, "I've been charging $3 daily parking for two decades." There's plenty of free parking downtown. Sandoro's lots, seldom full he notes, are concentrated in the Michigan Street and Seneca Street area near Coca Cola Field and ECC.
What's the Strategy?
According to the property owners, Buffalo doesn't seem to have a cohesive policy with regard to parking. What is the goal? To retain retail? That has not worked. To maintain a healthy commercial real estate market? Leasing rates have not gone up in the last 20 years. What indication is there that the last 50 years of "cheapest parking possible" being arranged for by BCAR has achieved any level of success they ask.
Croce, who serves on the NFTA Board of Commissioners, suggests an overall transportation policy be developed for the city. "We've been tearing down to create parking for decades and look at where it has gotten us. Buffalo needs a cohesive strategy that looks at parking location and rates in conjunction with mass transit."
Croce has never torn down a building to create parking. In fact, he'd like to get out of the parking business and develop his downtown lots. His philosophy is to create density, make downtown more attractive and people will pay to park. "People do not come downtown to park, they come downtown to work and for events," he says.
If new ramps are built, Croce suggests they be put on the fringes of downtown. Doing so provides two benefits. First, property in the inner core is preserved for a higher and better use such as commercial office space, retail or residential which would in turn increase the property tax base. Secondly, parking structures on the perimeter would encourage people to walk by and frequent retail services on their way to and from work or their residence.
Buffalonians have grown to expect affordable, convenient parking close to their destination.
"Buffalo workers currently drive straight from their homes to their convenient, low cost BCAR parking facility, and then straight home again at the end of the day," says Fitzmaurice.
"Buffalo is not Toronto," countered Parking Board member Michelle Mazzone.
Fairness
BCAR's ramps compete unfairly against the private sector because they don't pay sales or property taxes. Low parking rates also discourage construction of privately-built and operated ramps.
"We are charging the same rates, but have to pay property and sales taxes. BCAR does not," says Sandoro.
If the ramps are indeed necessary, the monthly parking rates should be high enough that a private parking developer would see the opportunity and build a facility that pays sales and property taxes. A commercial office building developer would be able to construct their own parking ramp to support their project, not expecting the City to provide for their parking needs.
If rates are raised in the more heavily used facilities, people would still come to work. Ramp vacancy would increase providing room for transient parkers- the people coming downtown to conduct business and/or spend money. The increased vacancy could eliminate the need to construct some or all of the new proposed ramps.
"As stakeholders and more importantly, taxpayers, we find the conclusions of the Desman Report highly disturbing," says Fitzmaurice. "It seems as if the report was developed with the premeditated conclusion to expand the BCAR system. Construction of these ramps will perpetuate a system that maintains artificially low parking rates which in turn produces high occupancy."
"Contrary to the Desman report, we think the City should get out of the off-street parking business," says Croce. "Allow the private sector to provide this service according to market demands. The city focuses on offering the cheapest parking possible through BCAR. This focus hasn't prevented retail from going the way of the suburban shopping mall."
How do other cities manage or deal with parking issues in their downtown areas? Are there any success/failure stories?