Can Parking Minimums Stymie Development?
Streetsblog has an intriguing post about how parking spot requirements in new construction have the potential to mess with a developer’s bottom line. The post centers around the opinions of Hudson Companies co-founder Alan Bell, who says that he’s often sought waivers for parking minimums, particularly in projects that aren’t large, and walked away from…
Streetsblog has an intriguing post about how parking spot requirements in new construction have the potential to mess with a developer’s bottom line. The post centers around the opinions of Hudson Companies co-founder Alan Bell, who says that he’s often sought waivers for parking minimums, particularly in projects that aren’t large, and walked away from development opportunities because the minimums made them financially untenable. Bell says building the spaces—which can run from $25,000 to $50,000—is extremely costly, and can come at the expense of revenue-generating retail space. Here’s one of his cautionary tales: An “East New York project of Bell’s has 179 units, enough that parking would be required even if the building were subdivided into pieces. To comply with the law, Bell built 62 surface parking spaces. ‘I have five takers,’ he said. The rest sit empty. ‘Now instead of a big green backyard around the play area, I have this macadam. You just say why?'” The developer says he thinks one solution would be to revise zoning so that parking minimums aren’t required in high-density areas with easy access to transportation.
Developer: I’ve Walked Away From Projects Because of Parking Minimums [Streetsblog]
If this developer only has 5 takers for his parking spaces he must be doing something wrong. East New York is not known for “easy” transportation options, and there are plenty of people with cars, but his parking lot may be too unsecured or expensive or both for his potential customers.
Brooklyn Heights has a lot of transportation options but the garages here are all full with waiting list many years long. Park Slope is notorious for the long wait times and shortage of on street parking. So if there are any open parking spaces around it means developers aren’t advertising.
“Parking is not the reason for no retail along 4th”
I have heard rumor that DCP may make a zoning change to 4th Ave to promote more retail usage…as well as frontage on 4th Ave, rather than a sliver on 4th and the bulk on the side block overlay (like the photo above in this post).
Thanks Benson – Parking is not the reason for no retail along 4th – only 2 buildings even utilize parking on the 1st fl – Crest and Argyle – all the rest have underground parking only.
There is some mis-information in this thread. Let’s clear it up:
-more than 50% of the new towers on 4th Ave have retail space. Two out of the three buildings near Baltic and 4th have retail. The Novo was built with retail. 500 4th Ave has retail. The building on the corner of 19th and 4th has retail, as does the one on 21st and 4th Ave.
-likewise, many of the towers on 4th Ave have underground parking. The Novo does, as does the Crest. It is trickier than usual, because of the subway tunnel, but it can be done. It depends on the size of the building, the price point, etc.
-I can’t speak about the towers in Downtown Brooklyn, but I can tell you that all of the parking garages in the buildings on 4th Ave are sold out. I live right next to the Crest, and its parking garage is over-subcribed, in fact.
ITA with “Maybe you are not pricing them for your market? Is that the government’s fault?”
The guy with just 5 of 62 spaces taken – you’re charging too much for the spots and as of now East New York has easy on street parking, so why would anyone pay?
The new developments in Brooklyn Heights and along 4th and 5th Ave are geared towards upper-middle class folks and families. If the first families in the building don’t have cars as yet or are parking on the street, that’s going to change real quick as the building fills up and the neighborhood gets a huge influx of new families.
Its way harder to find parking on my block now than it was 11 yrs ago and we haven’t had any new towers built. Its simply because as the neighborhood attracts higher earners, those people tend to bring their cars. And if they don’t have a car at first, as soon as kids start coming into the picture – Presto there’s a half dozen more cars competing for street parking.
“Maybe you are not pricing them for your market? Is that the government’s fault?”
Exactly…
The real tragedy of the commons in terms of parking in NYC is that the city gives away street parking.
Dear genius at Hudson Companies: 62 spaces, only 5 takers. Maybe you are not pricing them for your market? Is that the government’s fault?
Using the Slope as an example, I don’t think you can leave parking to developer’s discretion b/c they add a burden to the community but offer nothing to ameliorate it, to the detriment of all (a classic example of the tragedy of the commons: “a dilemma arising from the situation in which multiple individuals, acting independently and rationally consulting their own self-interest, will ultimately deplete a shared limited resource even when it is clear that it is not in anyone’s long-term interest for this to happen.” http://en.wikipedia.org/wiki/Tragedy_of_the_commons)
I disagree on the “parking should not be required” if the building is near public transportation. Sometimes that makes the parking situation even worse as some people drive to the area just to park there car close to public transportation. Also once these big developments go up, guess what happens…people bring there cars. I live on the same block as 500 4th ave and the parking situation is just horrendous now. Luckily the developer put in a parking lot (below ground). At least this gives people the option to use a lot if they can afford it. I actually think the city is too lax….they should require enough parking space for each unit in the building. I have no sympathy for the developers.