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Home My WebLink AboutINS-15-096 - Support to Downtown Businesses During Light Rail Transit Construction Staff Rport I r rc'.�► t .R Infrastructure Services Department wmkitchener.ca REPORT TO: Finance & Corporate Services Committee DATE OF MEETING: November 2, 2015 SUBMITTED BY: Justin Readman, Director of Transportation Services (519) 741-2200 ext. 7038, and Rod Regier, Executive Director of Economic Development (519) 741-2200 ext. 7506 PREPARED BY: Paul McCormick, Manager Parking Enterprise (519) 741-2200 ext. 7155 WARD(S) INVOLVED: Ward(s) 9 and 10 DATE OF REPORT: October 19, 2015 REPORT NO.: INS-15-096 SUBJECT: SUPPORT TO DOWNTOWN BUSINESSES DURING LIGHT RAIL TRANSIT CONSTRUCTION -ADDENDUM RECOMMENDATION: That free evening and weekend parking within Downtown City-owned parking lots be approved as outlined in Options 2b, 3c & 4 of Infrastructure Services Department report INS-15-096 effective through to the anticipated completion of ION Light Rail Transit construction in 2017. BACKGROUND: This report supplements the previously posted staff report INS-015-090 dated October 19, 2015. It is recognized that ION construction is affecting travel patterns, and downtown businesses are experiencing less foot traffic as a result. The intent of this initiative is to encourage more people to frequent downtown businesses, especially evenings and weekends. Staff met with the Executive Director of the Downtown Business Improvement Area (BIA) to discuss additional options that arose after reviewing data from the garage facilities and preliminary data from the two month pilot project providing two-hour-free- parking passes for use at the Charles & Benton garage. ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 2 - 1 Since August 17, 2015 a pilot project to provide two-hour-free-parking passes for use at the Charles & Benton garage has been in place and after two months the pilot project has resulted in 343 two-hour-free-parking passes been used between Monday and Friday at a value of approximately $975. It is estimated that approximately 8,700 customers use the parking garages located at City Hall, Duke & Ontario and Charles & Benton on Saturdays. All three of these garages are in close proximity to downtown businesses directly impacted by the ION Light Rail Transit (LRT) construction. REPORT: The following options are being presented for consideration until the LRT construction is completed in 2017 (the heading for each of the recommended options is underlined): Option 1 - Status Quo. No changes made to the current parking rates and subsidy amount. Option 2a — Extend Weekday Evening Parking in Downtown Surface Lots. The weekday evening subsidy be extended one hour earlier (from 5 pm to 6 pm Monday to Friday). Option 2b — Extend Weekday and Saturday Evening Parking in Downtown Surface Lots. The weekday and Saturday evening subsidy be extended one hour earlier (from 5 pm to 6 pm Monday to Saturday). Option 3a — Flat Rate Saturday Parking in Downtown Surface Lots. A flat rate user fee (i.e. one fee to park all day) be implemented in surface lots in the downtown on Saturdays instead of an all-day subsidy putting less strain on funding. A flat rate user fee is a different payment method compared to the existing time based user fee (i.e. pay by the hour) currently implemented in surface parking lots and garages. Option 3b — Free Saturday Parking in Downtown Surface Lots. Provide free parking all day Saturday to encourage customers to do business downtown. Option 3c — Two Hours Free Saturday Parking in City Hall, Duke & Ontario and Charles & Benton garages. The user rate fee in the above garages changes on Saturdays from $3.20 for the first two hours to free to encourage customers to do business downtown. Any customer parking beyond two hours would be charged $1.65 per half hour thereafter up to the daily maximum of$14.50 Option 3d — Two Hours Free Saturday Parking in City Hall, Duke & Ontario and Charles & Benton garages with Parking Coupon. Provide two-hour-free-parking anytime on Saturdays with parking coupon from participating business. This option is different from Option 3c as customers will require a coupon from participating retailers to obtain two-hour-free parking. 2 - 2 Option 4 — Continue the existing two-hour free-parking pass pilot program and increase coverage to include City Hall, Duke & Ontario and Charles & Benton garages. Provide 2-hour-free-parking anytime on weekdays with parking coupon from participating businesses or BIA Ambassadors. FINANCIAL IMPLICATIONS: Option 1 — Status Quo There are no additional funding requirements. Option 2a — Extend Weekday Evening Parking in Downtown Surface Lots Staff estimates the impact of providing an additional free weekday evening hour (5-6 pm Monday to Friday) would result in a loss of revenue of approximately $33,000 annually + H.S.T. Option 2b — Extend Weekday and Saturday Evening Parking in Downtown Surface Lots Staff estimates the impact of extending free weekday and Saturday evening parking one hour earlier (5-6 pm Monday to Saturday) would result in a loss of revenue of approximately $35,000 annually + H.S.T. Option 3a — Flat Rate Saturday Parking in Downtown Surface Lots Staff estimates the impact of providing a flat fee of $2.00 on Saturdays would result in a loss of revenue of approximately $32,000 + H.S.T. annually. Option 3b — Free Saturday Parking in Downtown Surface Lots Free Saturday parking in surface lots would result in an additional loss of revenue of approximately $85,000 + H.S.T. annually Option 3c — Two Hours Free Saturday Parking in City Hall, Duke & Ontario and Charles & Benton garages Staff estimates the impact of providing two hours free parking on Saturdays would result in an estimated loss of revenue of a minimum of$27,000 annually + H.S.T. There is the ability with this option to determine exact counts and costs that will be reconciled at the end of each year. Option 3d — Two Hours Free Saturday Parking in City Hall, Duke & Ontario and Charles & Benton garages with Parking Coupon Staff estimates the impact of providing two hours free parking on Saturdays with a coupon would result in a loss of revenue of less than Option 3c as participants in the program would require a parking coupon from participating retailers to receive the two hours free parking. Staff estimates customer useage to be reduced by about 40% resulting in a loss of revenue from $27,000 to approximately $16,000 + HST. There is 2 - 3 the ability with this option to determine exact counts and costs that will be reconciled at the end of each year. Option 4 — Continue the existing two-hour free-parking pass pilot program and increase coverage to include City Hall, Duke & Ontario and Charles & Benton garages Staff estimates the impact of continuing with the pilot project from Monday to Friday would result in a loss of revenue of approximately $15,000 annually + HST. There is the ability with this option to determine exact counts and costs that will be reconciled at the end of each year. GENERAL: Discounted and/or free parking is an economic development incentive and should be accounted for as such, with provision being made in the Economic Development Reserve. If this initiative were to continue beyond 2017, permanent tax supported operating budget funding would need to be approved. In addition, if Option 2a, 2b, 3a or 3b is chosen there is also a one-time expense of approximately $10,000 + H.S.T. to reprogram the pay & display machines and to update parking lot fee signage, which will also be recovered from Economic Development. For clarity, should Council approve the recommendation outlined within this report, the annual funding requirement is $77,000 + H.S.T. plus a one-time fee of $10,000 + H.S.T, which is to be funded from the Economic Development reserve. Options 3c and 4 will be tracked and reconciled using exact counts at the end of each year. The Hospital surface parking lots, the Civic District Garage and Theatre rates for The Centre in the Square performances would not be impacted by the recommendations. Revenue in the surface and garage facilities will likely be reduced depending on which options are chosen as parking customers use the cheaper alternative. The impact at this time is difficult to quantify and these amounts have not been taken into account above. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. COLLABORATE — Staff met with the Executive Director of the Downtown Business Improvement Area (BIA) to discuss additional options that arose after reviewing data from the garage facilities and preliminary data from the two month pilot project. The Executive Director is in agreement with the recommended options and believes they are a cost effective way to encourage more people to frequent downtown businesses, especially evenings and weekends. ACKNOWLEDGED BY: Jeff Willmer, Chief Administrative Officer 2 - 4