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HomeMy WebLinkAboutI. B. Oceanfront Free Parking Impacts 2.18.2025 1Oceanfront Parking LJ Hansen, Director of Public Works February 18, 2025 1 Objectives & Agenda Informational briefing only No action is being requested from City Council 1.Background 2.Current Conditions 3.Rate Model 4.Free Residential Parking 5.Benchmarks 2 Today ’s Briefing p3 •Staff were asked to investigate the potential for free parking in the Resort Area for VB residents •In response to inquiries from Budget & Management, staff had already engaged a consultant to look at parking fees •City staff manage parking garages, lots and on-street parking – Today’s presentation is on the Oceanfront parking Public Works – Parking Management •$130M in asset valuation •17,000+ Parking Spaces •8 garages at 2.4M sq ft and 45 levels •780+ metered on-street spaces •100+ contract employees (peak season) •$12M+ in Annual Expenses (includes Town Center) •921,000 vehicles parked annually Awarded by the International Parking and Mobility Institute (IPMI) p4 Purpose & Goals of Parking Management •Easy to Find an Open Space •Easy Means of Payment •Close Proximity to Destination •Fair Pricing & Enforcement •Positive Customer Experience p5 Oceanfront Parking Lot & Structure Map p6 Current Fee Structure •Resort Area parking is charged with rates variable by season and peak times •Rates have been unchanged for many years p7 Parking Rate Analysis •Draft Report – Just wrapping up •Analyses of: •Revenues Generated •Operating Expenses •Trends & Forecasts •Accounting for Capital Maintenance •Projections of Parking Fund balance p8 Parking Enterprise Fund p9 •Enterprise fund - requires that the parking operations generate sufficient revenue to support operations Post –pandemic (FY22-FY24) Avg Revenue - Avg Operating* Expenses - $6.26M $5.48M * - Doesn’t include Capital Maintenance or Debt Service Atlantic Park Development •Parking Garage: •$49.5M construction cost •1,455 spaces •Anticipated to open 5/2025 p10 Atlantic Park Projections 11 Expenses Revenue Parking Fund Revenue & Expenses Projections Capital Maintenance -$75 per space per year (garages) - $440,000 p12 Parking Fund Sensitivity Analysis p13 Fund Balance Projections - Flat Rate Scenario Projected Fund Balance p14 Residential Parking – Now p15 •Currently – VB Residents pay the same as guests before 5:00pm •$3/stay after 5:00pm in lots and garages •This requires a staff member to look at their license or by the resident calling a phone number, when lot or garage is unattended •More garages are going gate-less. This means that there is not a staff member to check an ID So – what about free residential parking? p16 •Our employee pass program shows that 90% of the oceanfront employees live in VB •Potential neighboring residential use is harder to estimate •A sample of data collected from our system in July 2024: •Transients average stay - 2.45 hours •Employees average stay – 7 to 8 hours •Residents average stay – 16 hours Free Residential Parking – Cont’d p17 •No incentive to leave means that parking would be unavailable to paying customers •This would in-turn create a need for more parking •Enforcement would be incredibly difficult •Loss of revenue would adversely impact the current financial model of self-sustainability •This would result in the need to raise fees significantly or supplant the Parking Fund with other funds (TIP/GF) Parking Rates around Virginia: •Benchmarked 3 Virginia Cities: Norfolk, Newport News, and Richmond •All cities have various rates and discount structures •In general Virginia Beach’s rates are similar to Newport News and Norfolk but lower than Richmond Parking Rates - Benchmarking p18 Parking Rates in Other Coastal Tourism Cities •Benchmarked Rehoboth Beach (DE), Ocean City (MD), Myrtle Beach (SC), Charleston (SC), Miami (FL) •All cities have various rates and discount structures •In general Virginia Beach’s rates are significantly lower than the benchmarked communities Parking Rates - Benchmarking p19 Thank You 20 Questions/Discussion On-Street Parking: Resort 551 Multi-Space Meter spaces & 129 Single Space Meters All Meters accept Credit Cards and Mobile Phone App payments - Connected in the Cloud 680 Spaces 2024 - $1,614,000 in Fees Approx $2,400 per spot/annually $2/hour 466K Transactions Per Year Avg Length of Stay is 1.5 hr Pay by Plate Mode