Does Menlo Park Really Need A Downtown Parking Structure? Afford One?
Last Update: August 2, 2018.
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In April 2018 the City Council created a Parking Structure Subcommittee to investigate funding alternatives for a downtown parking structure. The subcommittee includes Ray Mueller and Catherine Carlton. As of August 1 – three months later – no progress had been reported and the subcommittee has NOT yet scheduled an initial meeting with city staff.
The economics of building parking garages on the Peninsula is rapidly losing its appeal. Just look at the recent experience of Palo Alto Web Link. In April 2017 that city approved $34.5M to build a 6-story garage including 2 underground levels and would add 335 new spaces at a cost per incremental space of $103,000. Now less than a year later, the cost has increased 16% to $40M and the estimated cost per incremental space is $119,000.
Meanwhile, Menlo Park continues to study how to build a downtown parking structure without FIRST (a) determining the actual need for more spaces (b) estimating how many would be enough, (c) identifying likely funding sources and (d) evaluating reasonable ways to flexibly add short-term parking downtown WITHOUT building a parking structure. Instead it’s trying to figure out how tall a structure would be acceptable to residents. This is irresponsible!
Note: in April 2018, the Menlo Park city staff estimated the cost per space of building a new parking structure in Plaza 3 at $69,000 ($45M for 650 total spaces) but this ignores the fact that the structure would replace 212 existing spaces. So, the cost per incremental parking space would actually be $102,400 ($45M for 438). This is extraordinarily expensive!
News: May 2016: A hired consultant estimates that a new downtown parking structure in Menlo Park would cost between $40,000 and $50,000 for each additional space using 2004 dollars, and <u>this misleading claim was unchallenged!</u>.
Guest Opinion: Should Menlo Park Build A Downtown Parking Structure?
(The Almanac – March 23, 2016)
Recommendation
At a time when the future demand for short-term public parking in the next ten to twenty years is so uncertain, Menlo Park should be evaluating a more affordable, cost-effective, flexible and timely solution than a plaza parking structure.
- Currently there are under-utilized public and private parking lots near downtown that could be converted easily into at least a 100 annual permit parking spaces for weekday business employees.
- Just 100 more short-term parking spaces would increase the downtown inventory by 12% => from 915 to 1015.
- These additional spaces could be in-place in 2017 and likely cost $1000 to $5000 per space.
Free (or inexpensive) satellite permit parking compares extremely favorably to a small plaza parking structure like the one identified in the Specific Plan. It would cost at least $8.8M million, add about 155 net new spaces at about $57,000 per space and not be available before 2020 at the earliest. Because the Specific Plan severely restricts commercial development downtown it is unlikely that Menlo Park could attract private investment to subsidize this cost. Nor is it likely that non-local public funding sources are available for this purpose.
Menlo Park is the home of Facebook and a large number of professionals who work in Silicon Valley firms, yet the widely admired innovation has not rubbed off on our city transportation planning. For example, a year ago the city said it would kick-off a study to evaluate building an initial parking structure downtown. Of course, this would take a millions of dollars that Menlo Park does not expect to have, and while a private partner and/or public funding from outside Menlo Park might be the answer, no vetted sources have been identified. If parking is to remain either free or affordable its hard to see how a parking structure could be an appealing investment.
So what is the City to do? It needs to seriously evaluate two viable and much less costly alternatives that could be implemented in 2016.
Existing Downtown Parking
- Most short term public parking is free in Menlo Park – as it is in nearby downtown Palo Alto, the Stanford Shopping Center and the Palo Alto Town & Country shopping plaza – and here it is limited to three hours per parking plaza per day. Drivers are allowed to re-park in a different parking plaza.
- According to the city Specific Plan there are now about 1600 short-term public parking spaces downtown including 1200 in parking plazas. Note: that the parking time limits have changed from what is shown.
- The current demand for parking downtown varies greatly by day and time of day. Midday parking Monday thru Friday can entail a long walk to one’s destination but on weekends it seems to vary by plaza. In the evening parking spaces are readily available all week in all parking plazas. Also, weekend parking generally does not appear to be a problem. The table below illustrated parking plaza occupancy rates during a deep recession in 2009. Current capacity utilization is likely higher but unknown.
- 685 fee-based, downtown daily parking permits are now sold each year so a large percentage of parking spaces are NOT available for short term parking during normal work hours. (Note: The permits are attractively priced at less than $500 a year = a daily cost of less than $2 assuming 250 usage days. This compares very favorably to the $5/day charged at the Caltrain parking lot.)
(1600-685)/1600 = 43% of total parking unavailable
(1200-685)/1200 = 57% of plaza parking unavailable
- The addition of just 100 short term parking places would significantly increase the availability of parking for non-permit users.
100/(1600-685) = 100/815 = 12% increase downtown parking
100/(1200-685) = 100/525 =19% increase in plaza parking
Potential Parking Structures
The Specific Plan (2012) identified a number of plaza locations where parking structures could built.
Potential Satellite Daily Permit Parking
There are only a few ways Menlo Park could add more short term public parking capacity downtown.
- Reduce the number of annual downtown parking permits.
- Build a parking structure with public funds.
- Partner with a developer who would build a parking structure on a downtown plaza that would serve the city and its own needs.
- Lease parking spaces from private garages, e.g., Station 1300.
- Build <u>satellite parking</u> lots on either public and private land.
Given the large uncertainty about future demand for parking, the broadly recognized need to incentivize more drivers to use alternative modes of transportation, the cost of parking structures and the limited availability of practical alternatives, it is not clear that Menlo Park either needs or can actually afford a downtown parking structure. It’s time the Menlo Park City Council adopted a pragmatic vision about the future and focus on how affordable solutions could better serve its residents and businesses for the next 10-20 years and beyond. Satellite permit parking lots served by convenient and free shuttle services is the most promising solution.
Learn more about the possibilities of providing satellite parking in Menlo Park.
Prospects For A Private-Public Parking Structure Partnership
In the summer of 2016, the Menlo Park City Council initiated a study of potential private-public partnerships which would require a developer to provide enough new parking to satisfy the City and its own needs for an economically viable downtown commercial development project. Is this promising? Likely not. But at least a study might demonstrate there is no simple, low cost way to build a public parking structure even if the City contributes land currently used for plaza parking.
First, the Specific Plan severely limits building heights downtown, a restriction too severe to allow enough room for multiple parking structure levels, commercial space for retail, office and/or residential facilities and the infrastructure needed for motorists and pedestrians to move between them.
The builder would need to replace existing surface spaces, create additional spaces for the City, and create parking spaces for its own offices, retail, and residences. Per 1000 square feet, developers must provide the following parking spaces: residential: 1 to 1.5, office: 3 to 3.5, retail: TBD, movie theaters: 8 to 9.
Example: Build residential units and 512-space parking structure in Plaza 3.
Current parking capacity: 212 spaces
Additional public parking: 150 (purely a guess)
100 residential units of 1000 square feet equals about 100 to 150 parking spaces.
Total parking required: 212 + 150 + 150 = 512 => likely three levels
Residential unit space: 100,000 square feet
Residential infrastructure* space: 80,000 square feet
Total residential square footage: 180,000 square feet.
Total residential height: 3 to 4 levels
Total # of parking and residential levels: 6 to 7
Total parking cost (assumes surface only): 512 x $70,000 = $35.8M
Total developer subsidy of Menlo Park: 362 x $70,000 = $25.3M
Total parking cost (assumes 2 underground levels): 300 x $90,000 + 212 x $70,000
=> $27M + $14.8M = $41.8M
* Includes lobby, storage, hallways, stairways, elevators, recreational amenities
A Closer look at this example illustrates the economics and issues that surround this approach.
Concerns:
- Would the city approve a 4 to 5 story building with two levels of underground parking?
- Would the city accept a 6 to 7 story building with no underground parking?
- Would either option be economically attractive to a commercial developer
- A requirement to include retail or other types of space would increase developer construction costs and the height of a downtown building.
- Could the city and/or developer charge parking fees that would “meaningfully” offset construction costs?
FAQ
- How many more short term public parking places does Menlo Park need?
The city does not have an official estimate for either the current or future demand for downtown parking spaces; however, a reasonable estimate might be a maximum of 100 to 150 more spaces over the net 15 to 20 years. Keep in mind that some parking spaces might be eliminated to accommodate new bike lanes and improvements in downtown infrastructure like outdoor dining and an area for events.
- Why is demand expected to grow albeit modestly?
The Specific Plan severely limits the amount of new office space that could be created downtown by restricting building height and there is no open space other than the parking plazas that could support new residential and retail construction. Demand will therefore be driven primarily by the of appeal that downtown has for consumers. While the local economy is currently booming demand for downtown parking appears not to have grown significantly during the past few years.
- Why are the cost estimates for parking structures ($40,000 to $60,000 per space) much higher than what is in the Specific Plan ($28,800 to $32,400)?
The Specific Plan numbers were estimates for 2012. Currently parking structure contractors estimate that surface and above ground construction costs range from $25,000 to $40,000 compared to $60,000 to 120, 000 for underground parking spaces. The costs vary depending on the total parking space capacity and, in the latter case, on underground environmental conditions. These costs do NOT include land.
- Won’t the loss of annual downtown parking permits hurt businesses?
This can easily be avoided by offering employees who need daytime parking reasonable alternatives in terms of cost AND convenience. This assumes that a small percentage of existing permit users would prefer to save money and usually do not need access to their vehicles during the day. As a buffer they might be offered the option of parking downtown a limited number of times when necessary, e.g., 10 days a year.
- How could Menlo Park make permit parking affordable and convenient if some downtown permit parking spaces were eliminated?
There are a number of ways. Here are some examples. Create satellite parking that is a short distance from downtown and provide users who sign-up for satellite parking free special permits for a few years. In return, they do not have permit privileges downtown. Expand the current free midday shuttle service to include commute times with pick-up every 15 to 20 minutes instead of the current 60 minutes.
- Wouldn’t satellite permit parking at Nealon significantly penalize other park users, especially seniors, volunteers and employees at Little House.
Not if done right. Here are some possible mitigation tactics:
Expand the number of parking spaces by about 25 to a total of 180.
Limit the initial permit parking to about 50 designated spaces along the main driveway off Middle.
Require that Little House employees to park on Roble and use the path that connects to the parking lot. There are at least 40 spaces within a convenient short walking distance. Employee permits might be used to minimize the impact on Roble residents.
Weekend and evening uses of the park would not be impacted by the satellite parking. In the event Little House holds a large event during a weekday, Satellite parkers would be notified and redirected to downtown with signage and not be penalized on these occasions.
Overnight resident, visitor and guest parking would not be impacted.
Community Discussions
Does Menlo Park Really Need A Downtown Parking Structure? Likely Not.