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June 28, 2007

Let's Talk About Parking Some More

squeezedhouse.jpg
Well that certainly was lively, wasn't it? Our post about the proposal to shoot SF with a Los-Angeles-gun by adding parking to the city (and subtracting everything else) attracted tons of comments, with some very well-put arguments on both sides of the issue. Time to channel that energy into Real Life, if you can bear to leave your wretched computer: SPUR is hosting a Transportation Committee meeting to discuss the initiative!

It's happening Monday, July 2, at SPUR's 312 Sutter Street headquarters from 12:30 to 1:30 pm. Valet parking will be provided. Ha ha ha, just kidding!

Here's some things that SPUR, which generally advocates for intelligent, green, sustainable planning, has to say about the proposal:

... making it impossible to change parking regulations as part of a neighborhood planning effort ... amends parking requirements to increase the amount of parking required and permitted in new projects (especially downtown) ... regardless of impact to transit stops or any street trees ... limit the ability of the Planning Commission to impose urban design and affordability requirements ...

Yeesh. You can read the entire 60-page proposal on SPUR's site, or if you hate PDFs, on our Flickr stream. (Sorry the pages are all out of order -- we can't figure out how to reorder images in the Flickr uploadr.)


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Comments (49)

So SPUR is against this yes?

 

Very much, yes.

 

The pro-parking people would attend, but they don't want to pay $10 to park in one of the many garages in the area.

(for the record, I've never had trouble finding a parking spot in the city, so I'm not sure what the issue is. People want 'free' parking I guess?)

 

Mark, I actually wonder about this. Like you, I have hardly ever had any trouble finding parking. When I owned a car, I never parked more than 2 blocks from home. I've probably circled the block a few times in certain neighborhoods but there are a lot of public parking garages scattered around town and they are not usually, in my experience, full.

So here's my theory: some merchant has a crappy business. Let's say the merchant's name is Havid Deller, and he has a crappy beauty supply company on Geary. Business is in the shitter and has been that way for years. The merchant, who has a pretty high opinion of himself (after all, he's a self-made man), starts to formulate fantasies about why the business is failing. Eventually he hits on the obvious: not enough parking! If only people could park right in front of his business, they'd buy hair gel by the cubic meter. Clearly those filthy socialists on the bus aren't his customers. They hardly even shower!

So then the merchant, instead of tending to his business, starts a one-man crusade in order to perpetuate his fantasy that the city is stabbing him in the back by taking away his parking. There's no need to produce any evidence in support of this position, as it's plain to everybody. The city is out to kill off small businesses by taking away their parking! Death to the communists!

 

SPUR is actually showing some balls opposing this, since some of the prop's backers are big donors to SPUR.

On another note, how the hell can I log in? The sign-in needs to be on EVERY page.

 

The sign-in is supposed to be on every page, down at the bottom where the comments are.

 

You need to log out as guest first (top left) - that had me confused for a while.

 

Join SPUR - it is a great organization for San Franciscans to support if you love the City and care for its future.

 

Oh, thanks on the top-left. You ought to feature this more prominently.

SFist people should especially be interested in SPUR's monthy Young Urbanist events, which like a big SFist post in real time. They feature some city thing like fashion, food, art, etc. and have a panel of the people in SF making it happen. Geared toward under 40's. I think they even eat sushi off naked women, but that may be just a rumor.

 

Bravo, jwb.

 

I was just looking at the SPUR website and could not find anything on this meeting. www.spur.com

 

I'm holding the proposed ordinance in my hand and can't see any of the doomsday things mentioned in the lead-in piece. Can someone quote me some section numbers?

I also can't open the SPUR document, either from the link or from SPUR's site.

No one has yet mentioned that the ordinance encourages car sharing and that it mandates car-share dedicated parking spaces. see section 166.a and c

 

I really think you would have to be a complete idiot to sign the petitions to get this on the ballot and even dumber to vote for this.

This top-down, one-size-fits all approach to destroying urban planning makes Ed Jew look like Einstein.

 

The disaster is on page 21. Where downtown currently has a maximum parking allocation of 7% of gross floor space, the new measure allows at least one per 2000 square feet and sets no limit on the amount that could be approved. The measure also introduces a twisted "right" to a parking space which goes against this city's long-standing policies and goals.

 

we need to wait until we reign in all the rogue handicapped placard abuse before we try something like this. it's really out of control, thanks to the dmv and thanks to the self entitlement syndrome in our society.

start locking up people caught with illegal placards for weeks in jail to become free ass masters and that will stop it for awhile.

 

"Encouraging" car-sharing is one of those meaningless throw-aways that is an attempt to make an unreasonable proposition appear more reasonable without actually being so.

Fact is, there is no such thing as a free lunch, or parking. Establishing parking minimums like this just shifts costs around - it doesn't make them go away. Economics is economics - you cannot escape it.

Anytime you mandate requiring MORE parking in a development, several things happen. First, you create an abundance of parking which lowers its price in the marketplace, either as free parking or low cost parking. This causes more people to drive into the city because anytime you create an abundance of something and depress its price, people will use more of that good or service. The result is MORE congestion on the roads and MORE pollution in the air we breathe. The result is also a misallocation of economic resources as consumers consume more of a good than they otherwise would in a market absent the government intervention requiring the more parking spaces. Anytime you underprice a good it WILL be overused.

Second, it wastes valuable land on dead, nonproductive use - i.e. storing cars. There is less land to build housing, schools, community centers, child care, etc. because more land is taken up for parking.

Third, it drives UP the cost of development. Parking spaces do not generate revenue per square foot at the same rates as leasable or saleable office/retail/residential. There is a reason why many parking garages are owned by municipalities - parking garages often need to be subsidized. Thus, the costs to have space dedicated to store cars gets shifted onto the price of these other uses, making housing more expensive, office space more expensive, etc.

Fourth, it stifles redevelopment. As increased parking requirements drive UP the cost of development, it drives DOWN investment in real estate in less desireable locations - those locations most needing private capital investment.

Fifth, it reduces transit use. As the price of parking goes down, some transit users (those who are not transit captive) will switch to driving instead. As ridership goes down, it becomes MORE costly to society as a whole to operate public transit. Bus lines get eliminated, bus service frequency gets reduced, etc. in order to shore up the system - negatively affecting those least able to bear it - poor working households who are transit-captive.


This is a basically a bullshit proposition that anyone with half a brain can see is complete disaster. I'd recommend Prof. Donald Shoup's (UCLA) excellent book The High Cost of Free Parking for anyone interested in the issue.

 

I just want to see as much effort put into freeing up some rent-controlled apartments in the City by making everybody submit their tax returns to make sure millionaires aren't eating up valuable rent-controlled apartment space at $250 or so per month while making $100k+ per year and having a home in Marin for weekends.

 


I just want to see as much effort put into freeing up some rent-controlled apartments in the City by making everybody submit their tax returns to make sure millionaires aren't eating up valuable rent-controlled apartment space at $250 or so per month while making $100k+ per year and having a home in Marin for weekends.

You want to have local government bureaucrats in possession of our income data, disclosable upon demand to any member of the public under sunshine?

-marc

 

Lets see, I guess what people are saying is just leave things the way they are as new buildings go up, or make building parking spots even harder to build?

That should really help, considering that MUNI service is pathetic! Look at high density areas outside of downtown where there is little added parking. Clement St, Inner Sunset [try Irving between 19th and 26th Ave on a Sat morning]etc etc

Question- So how many units are in the yuppie palace 1 Rincon and how many parking spots are there? Where are all the brand new SUVs for the residents going to go? Thanks to our Eco friendly Chris Daly for this.

 

Just those of "us" who are taking advantage of a public benefit, Marc.

 

Yeah it's totally realistic that Yuppies buying multi million dollar condos will use MUNI and not need parking.

 

Yuppies? How atavistically 80s!

The big ole solution to that is to quit basing the City's future on luxury condo dwellers and only entitle housing we need for people who already live here and are couch surfing, raising families in SRO rooms or otherwise housing stressed, folks who will take transit because they do take transit.

The amount of productivity that the NYC subway provides for Manhattan is enormous.

On the matter of means testing for rent control, if means testing were implemented, then we'd see nothing but redlining in the letting of apartments. High wage earners and the wealthy would be the only ones who need apply. Means testing, unless made double blind, is a non-starter. How much would it cost for the City to provide double blind means testing?

Of course, the more luxury condos that are entitled, the more likely those who can service $900,000 notes @ 6% ($5,395.95 a month) would be to vote against rent control.

Yet another reason to stop the march of the luxury high rise condos!

-marc

 

So I just got off the phone with SPUR, they have not taken a position on this issue. The meeting is one of their tranportation committee, which can not take a position for the organization and that won't happen until August at the earliest. I am not sure how I oppose this measure but I don't support this type of campaigning...

 

Actually encouraging car sharing seems to be cleary working as we have 3 thriving car share companies in SF. These car shares are dependent on the number of convenient parking lot locations throughout the city.

"Anytime you underprice a good it WILL be overused." True, but this may only be a short term event. Eventually, a supply & demand equilibrium will be reached with prices rising if parking is underpriced.

Does additional parking have costs? Sure, to a certain degree, but I think it is misguided to blame parking as a significant contributing cost factor to expensive housing/office space in SF. I think our current planning department & board of supervisors is the bottleneck stifling development or redevelopment, directly driving up housing costs. We have developers sitting on land for years waiting for clearance to build. The process is expensive, onerous, and full of risk (i.e., hey your land parcel has just been rezoned!). We also have property owners sitting with empty apartments/buildings because of rent control regulations, thus driving up costs. While I may not agree with the proposal, I don't buy the argument that mandating parking is the culprit for the high cost of housing.

Also, don't forget those individuals buying the $1mm condos pay hefty property taxes. Cut out those folks, you cut off a huge income stream to the city and you'll see more budget cuts, and more social programs cut for all those SRO tenants and other lower income groups. Don't bite the hand that feeds the mouth.

 

"Anytime you underprice a good it WILL be overused." True, but this may only be a short term event. Eventually, a supply & demand equilibrium will be reached with prices rising if parking is underpriced.

Yes, as we socialize the costs of automobiles, we are all forced to subsidize cars whether or not we use them. Given that subsidy, there is little incentive for conservation on the part of motorists as they can always shift their loads to the rest of us.

I think our current planning department & board of supervisors is the bottleneck stifling development or redevelopment, directly driving up housing costs.

Since 2000, the population of San Francisco has dropped, from 50,000 down in 2002 to 30,000 down now. In that time, there have been like 15,000 new units constructed. Over the past 8 years, the price of an average new unit has gone from just under $300,000 to around $800,000, almost tripling.

To recap: we added supply, reduced demand and saw prices almost triple.


We have developers sitting on land for years waiting for clearance to build. The process is expensive, onerous, and full of risk (i.e., hey your land parcel has just been rezoned!).

Planning is so paranoid that the City will get sued for downzoning and taking that it does not do that. All construction entails risk, which is why construction loans carry such high interest rates. But the minimum profit that high rise builders will take is 28%. What is the median profit on those projects?


I may not agree with the proposal, I don't buy the argument that mandating parking is the culprit for the high cost of housing.

At least we agree on something.


Also, don't forget those individuals buying the $1mm condos pay hefty property taxes. Cut out those folks, you cut off a huge income stream to the city and you'll see more budget cuts, and more social programs cut for all those SRO tenants and other lower income groups. Don't bite the hand that feeds the mouth.

Any substance to that assertion or is it just the waving of the hands? I'd like to see a full life cycle analysis of costs and benefits of luxury condos before we decide to festoon the entire east side with towers.

-marc

 

I think you made my point ... the population counted as City residents decreased, the supply of housing increased, and yet the prices for housing went up quite bit more than what is expected from inflation.

Just like the Muni coin tokens were bought and horded when everyone learned that fares were going up from $1.25 to $1.50.

If you move to the City in your 20s, making $45k a year or whatever, and you get into a rent-controlled apartment .... fast forward 10 years, and you're making $100k a year or whatever, saved up enough to buy a nice home in Marin or maybe in the South Peninsula, and maybe you even work in Mountain View or somewhere down that way ... Perhaps you decide to hold on to that rent-controlled apartment as your "second, City home" ... so now your rent-controlled apartment at a much, much lower than market rate is empty most weeks and meanwhile rents/housing prices go up for the rest of us.

It'd be nice if folks would get as passionate about upper-income folks getting subsidized/reduced/welfare housing rates because programs do not verify folks really NEED the assistance to maintain a primary residence in the City ... I would guess there are a lot of folks these days who actually live elsewhere full-time and hold on to their "affordable housing" in the City as a second, weekender home.

But since this passionate thread is more about parking, the answer is no, we don't need any more parking in downtown San Francisco.

On the bright side, I noticed FlexCar just doubled the number of cars (from 3 to 6) at the Howard and Main Street surface parking lot ... of course, that lot will become the temporary Transbay Transit Center bus depot soon.

 

As a real estate developer in both the multifamily and commercial real estate industry, I can state unequivocably, as someone far more expert on this matter that probably 99% of the commenters, that increasing parking ratios (as is being done in the proposed ballot measure) drives costs UP, which is passed onto the consumer in the form of higher housing costs. Its also why many of us in the development community fight like hell against ass-backward initiatives like this, as well as why you see us begging before planning commissions for parking variances.

More off-street parking minimums = higher development costs = higher prices. Period.

Its also, by the way, why a lot of the proposed "transit villages" that folks are pushing to build on or near BART stations are so stalled - BART is requiring replacement parking spaces on the BART lots these projects are proposed for and everyone is pulling their hair out trying to figure out how to manage the cost recovery for building the parking spaces.

As for the commenter who noted that a price equilibrium will occur, that wasn't the point, as I noted quite clearly. Rather, the point was that a government mandated production floor of off-street parking results in an oversupply of good which winds up producing various negative externalities. Again, as I stated quite clearly, it results in a misallocation of economic resources - i.e. economic inefficiency. Second, its drive UP car commuting which increases congestion, leading to more clogged roads, longer commute times and more air pollution. Yes, prices will eventually stabilize, but at a result of more cars on the road, driving on the same roads. Which will result in that more congestion/air pollution. Which winds up driving demands for more lanes, more roads, etc. Which just winds up driving up the number of cars on the road in a vicious circle.

That's one of the problems with fixed assets like roads and off street parking spaces - once built, its a bitch to unbuild.

 

I forgot to add two things. One, higher price condos do result in more property tax revenue. However, you need to figure of the total cost resulting from this whole scenario. First, what is increase in public services - street cleaning, police, fire, parks & rec, etc. from the added load of these condos. At this point, you are probably at a net gain. However, there are the cost externalities I noted in the form of longer commutes, more congestion, more cars on the road, and more air pollution - costs which are externalized onto all the rest of us even though most of us are not getting any benefit from the off-street parking.

Second, lots of downtown off-street parking is bad for street-level retail. Its great for shopping malls like the Westfield, since the bulk of their customers come by car, often from out of the City. However, its bad for street retail as convenient access to a parking space results in shoppers who don't window shop. They get out of their car right at their destination, buy their stuff and leave. Limited parking with good public transit is far better to the average street retail merchant as it gets people having to walk down the street, which results in more window shopping and more shopping period.

Do you need some parking? Yes. Do you need tons of it. Absolutely not. San Francisco has one of the most (if not most) vibrant downtown commercial district on the entire West Coast. It is amazing what has been achieved hear in the state that invented car culture. It is striking the difference between the commercial areas in SF and the commercial areas in LA. (If it weren't for LA's immigrant communities, the retail districts in LA would be even worse)

 

The means testing for rent control is a useless red herring in the context of the parking proposal.

As far as upper income folks holding onto RC apartments as second homes in the City - I'm sure it happens. The question isn't whether it happens - that's rather irrelevant. The relevant question is whether it is happening on such a widespread SCALE as to cause distortions in the price for rental units in SF by keeping a significant number of units off the market such as to increase shortages. That is an entirely different question altogether and one not answerable with idle speculation or mere anecdote.

Put another way, if its only a few scofflaws, the costs of enforcement aren't really worth the trouble.

 

It'd be nice if folks would get as passionate about upper-income folks getting subsidized/reduced/welfare housing rates because programs do not verify folks really NEED the assistance to maintain a primary residence in the City ... I would guess there are a lot of folks these days who actually live elsewhere full-time and hold on to their "affordable housing" in the City as a second, weekender home.

Show me how you can do means testing for rent control without redlining, having landlords cherry pick based on perceived markers of evading rent control such as: education, income level, ethnicity and such, and we'll talk.

More off-street parking minimums = higher development costs = higher prices. Period.

This is true in most places but not here.

Say it costs $400,000 to construct a unit. Say it costs $75,000 to construct a parking space for that unit.

If that unit goes for market rate, say, $800,000, how can you say that the price of the parking space drove up price?

Would you say that the price of the unit would be $725,000 if parking were not required?

Demand for parking drives up price where the costs of constructing parking do not.

The distinction is subtle but not academic.


I forgot to add two things. One, higher price condos do result in more property tax revenue. However, you need to figure of the total cost resulting from this whole scenario. First, what is increase in public services - street cleaning, police, fire, parks & rec, etc. from the added load of these condos. At this point, you are probably at a net gain. However, there are the cost externalities I noted in the form of longer commutes, more congestion, more cars on the road, and more air pollution - costs which are externalized onto all the rest of us even though most of us are not getting any benefit from the off-street parking.

We need a lifecycle economic analysis of this before we go off entitling a zillion high rise luxury condos, lest we entitle housing that will cost more than it benefits in the "out years," sucking services from established neighborhoods.


That's one of the problems with fixed assets like roads and off street parking spaces - once built, its a bitch to unbuild.

Especially high rises that are built to deform safely but end up uninhabitable. Twisted wreckage might characterize the SF skyline post big quake like a mid rise building in Lubbock that was twisted by a tornado into uninhabitability decades ago.

-marc

 

High rises make sense in the Rincon Hill area of San Francisco because it is a public transit hub already - especially when Caltrain tracks come on in to the new Transbay Transit Center in about 7 or so years (assuming Caltrain can replace the diesel engines with electric or other means that don't spew pollution while travelling in underground tunnels).

The demand for housing is clearly there ... I'm sure a lot of folks would prefer to walk to work like I do instead of spending a good chunk of their life waiting in traffic, on BART, or riding Caltrain to get to San Francisco.

It is environmentally smart ... instead of infringing on wildlife and habitats to put up more 1-2 story homes or 4-6 story buildings, we can make use of the space we've already paved over years ago.

The property taxes will be quite helpful to the City, especially in paying for the gazillions in health insurance promised to current and future retirees.

On the means test for rent-control - just verify the person doesn't maintain a second home (a la Sunset AND Burlingame like some dude in the news lately). Anyway...

 

Marc -

I think you are trying to create a zero-sum dichotomy where one does not exist. Yes - the price of housing in SF is indeed partly a function of demand driven by the higher incomes in the Bay Area.

However, there is also a supply side to the price equation - there always is. If the costs of production go up, then suppliers will attempt to maintain profit margins by increasing price. Of course, absolute inelasticity of demand, less of the product will be demanded by the consumer. The other choice is to maintain price (or raise it partially and absorb some of the increased costs) and accept lower profit margins.

And yes, I am saying that without parking, the price of the unit would very likely be lower. If I can make the same return on investment in each scenario ($800,000 price less $75,000 cost for parking = $725,000 price less no parking), I will charge the lower price in order to capture higher demand. If I can move my product off the shelf faster (due to higher demand), I am in a far better position, as I will benefit from lower costs on the back end - my holding costs will go down as I clear inventory quicker, my marketing/sales go down as I need to spend less to get customers b/c more are coming through the door, etc. As my capital is returned to me sooner, my opportunity costs on capital go down and I can redeploy that capital sooner.

 

"As a real estate developer in both the multifamily and commercial real estate industry, I can state unequivocably, as someone far more expert on this matter that probably 99% of the commenters, that increasing parking ratios (as is being done in the proposed ballot measure) drives costs UP, which is passed onto the consumer in the form of higher housing costs. Its also why many of us in the development community fight like hell against ass-backward initiatives like this, as well as why you see us begging before planning commissions for parking variances." [27]

So is what is being said here, just keep the price lower and not add parking, but dump the cost onto MUNI etc and keep the profit?

 

The cost is always being shifted somewhere. But not all costs are equal. The costs to add parking come at a high price per parking stall which are shifted onto the consumer in the form of higher housing costs and also externalized into the public commons in the form of increased congestion, increased air pollution (particulate matter, CO and CO2), and increased usage & wear of city streets. Plus the opportunity costs of more land being devoted to a dead use (storing cars) and less being available for productive use (housing, office/retail space, schools, etc.)

Shifting onto public transit, you move more people at lower cost per passenger mile in absolute dollar terms than by auto. In addition, adding more users to the transit system make it less costly to operate per passenger overall, generally, as the marginal cost of carrying each extra passenger is not great. In addition, it reduces congestion on city streets, reduces wear on city streets, and, most importantly, reduces air pollution so that we can all live longer, healthier lives.

Again, as I stated, part of this issue is that the infrastructure we are talking about are fixed assets (buildings, streets, sidewalks, parking spaces) that are INCREDIBLY difficult and costly to move around and adjust to fluctuating demand.

Incidentally, this is a similar constraint on the air travel industry - airports are very expensive to build, very expensive to maintain, and once you have built one, you can't easily get rid of it. When's the last time you saw an airport for sale on eBay?

 

I want more parks ... and community gardening.

 

I can totally agree with ChinaNob. We were going to buy a distressed property in Healdsburg, drop out, and run a bed and breakfast. For our 2 room B&B the Healdsburg city planners wanted 4 off street parking spots. No place to put them on the property - no deal. Decrepit house will sit unsold forever because it's unusable. All due to parking requirements. They would not even listen to a variance request.

 

It's not true that everyone buying a place wants a car. I'm technically a "yuppy". We could afford a million dollar condo and we haven't owned a car in over seven years. We use car share and bike. That helps us be able to afford to live in SF.

 

I have a car that took me everywhere I needed to go in my prior home state, but I use my legs and public transit in San Francisco. I still have said car... but it sits unused except once every week or so for the grocery run or a trip to see friends in the East Bay. When that car dies, I'm joining a car share service for sure and not replacing the car ... then you can rent my parking space for $200/month. :)

 

The Planning Code ALREADY require