Kennedy School of Government Case Program
Kennedy School of Government Case Program
CR14‐07‐1877.0
This case was written by Andrea Broaddus, a graduate student in the John F. Kennedy School of Government�s MPP/UP program, and Professor José A. Gómez‐Ibáñez, Derek C. Bok Professor of Urban Planning and Public Policy at the Graduate School of Design and John F. Kennedy School of Government, Harvard University. The case is based on public document and interviews and is intended for class discussion only and not as a source of primary data. (0807)
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Parking in San Francisco
San Francisco has a reputation as a trend‐setter, a place where new ideas that address social problems can gain a foothold. And, true to that spirit, in 2006 planners in the City and County of San Francisco were promoting an overhaul of the city�s parking policy that they claimed would correct unfair and unwise subsidies for automobile users. The effort, led by Tilly Chang of the County Transportation Authority and Ken Rich of San Francisco Planning Department, was designed to allow market forces to play a greater role in determining parking costs by, among other things, raising the price of residential on‐street parking in neighborhoods where it was scarce, and raising parking meter rates on downtown streets, and amending zoning provisions that specified the minimum numbers of off‐street parking spaces that developers of new residential and commercial projects had to provide.
The effort to evaluate the proposed reforms was just beginning, but the initial reception was mixed. The strongest support came from environmentalists, growth management activists, and affordable housing advocates who believed that under‐priced on‐street parking and mandatory provision of off‐street parking encouraged excessive automobile use and high housing prices. Some neighborhood groups were also supportive, but others had misgivings that on‐street parking might become unaffordable and that reducing requirements for off‐street parking would only exacerbate the shortage of on‐street spaces. The reaction among real estate developers also varied. Builders of low‐income housing were supportive, but builders of more upscale housing were concerned that proposals to replace the minimum off‐street parking requirements with maximums would make new housing units harder to sell.
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The High Cost of Free Parking
The changes that San Francisco was considering represented a radical departure from traditional parking policies in American cities, and were inspired in large part by the scholarship of Don Shoup, a professor of planning and economics at the University of California at Los Angeles. Shoup had just published a book summarizing his many years of research into the origins and problems of American parking policy, titled The High Cost of Free Parking1. The book and his ideas on how to reform parking policy were receiving significant attention from city planners and local politicians. Shoup argued that free parking was something most Americans expect when making travel choices. It was so routinely provided by shop owners, employers, and home developers that parking only became a consideration in trip planning when it was not free. By tradition, citizens and city planners assumed that cities would provide free curbside public parking and that developers would provide additional free off‐street parking for the traffic generated by the activities on their sites.
Cities usually required developers to provide a minimum number of off‐street parking spots based on land use. The typical municipal zoning ordinance stated that �In connection with the use of each lot, sufficient off‐street parking space shall be provided to meet the demand created by all activities on the lot.� Few cities bothered to conduct a site‐specific analysis to establish how much parking was �sufficient� but relied instead on guidelines published by the Institute of Transportation Engineers. The common practice was to require at least 3 to 4 off‐street parking spaces per 1,000 square feet of office space, for example, and at least 1 or 2 off‐street parking space per residential dwelling unit. If a building required zoning variances, however, the minimum parking requirement often became the base for negotiating a higher number of off‐street spaces. Planning commissions and neighborhood groups could spend hours wrangling over parking provisions, often adding project costs and delays.
Shoup argued that these expectations and requirements led to an enormous oversupply of parking that encouraged excessive automobile use and increased air pollution and traffic congestion. Free or under‐priced on‐street parking gave drivers an incentive to cruise the streets looking for an open spot rather than pay for an off‐street space. His studies suggested that cruising accounted for as much as a third of traffic in crowded business and residential districts. Cruising ate up drivers� time, slowed other motorists and public transit vehicles, and added to air pollution.
Similarly, zoning requirements to provide large numbers of off‐street spaces at offices and stores encouraged most employers and merchants to offer free parking to employees and customers. And the minimum parking requirements for residential developments insured that commuters and shoppers would have an apparently �free� parking space at home as well, since a residential unit and its associated parking spaces were typically sold by developers as a package,
1 Don Shoup, The High Cost of Free Parking (Chicago: Planners Press, 2005).
2
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or bundle, rather than separately. The reality was that off‐street parking requirements added significantly to the costs of commercial and residential developments, and these costs were passed on to homebuyers and customers in the form of higher prices.
Overabundant parking also affected urban design and how cities grew geographically. The average parking space required 300 square feet. Many suburban cities required two parking spaces per new residential unit built, so that a condominium building with 50 units would need 100 new, off‐street parking spots. It was usually cheapest to provide these spaces on a surface lot, meaning that the condominium would be surrounded by 30,000 square feet, or two‐thirds of an acre, of parking lots. Shoup estimated that there were three parking spaces for each of the 230 million motor vehicles in the United States, which meant that an area equivalent in size to the state of Connecticut was covered with parking.
The ultimate solution to managing parking supply, Shoup argued, was to let the market do the planning. �Cities can and should regulate off‐street parking to improve its quality, but they should deregulate its quantity and instead charge market prices for curb parking,� he recommended. 2 On‐street parking meters should be priced such that occupancy is 85 percent in peak hours, for example, so that drivers can find an open spot without too much cruising. The parking spots would go to those who valued them most. Thus higher parking charges would amount to a progressive tax on the wealthy, Shoup argued, even though the poorest drivers would have to walk further. Moreover, �letting market prices manage parking will take a heavy burden off city councils, which now devote endless hours of uninformed debate to micromanagement of parking for every land use�if cities let prices take care of parking, politicians will spend more time debating public issues that really matter.� 3
Parking Demand in San Francisco
The City of San Francisco was the home to about 18.6 percent of the nine‐county metropolitan region�s workers and 25 percent of its jobs. San Francisco was well served by public transportation, including MUNI, a municipally owned cable car, street car, and bus operator; BART, a regional subway system that connected downtown San Francisco with the communities on the other side of the East Bay; CalTrain, a commuter rail service to the south, and the Golden Gate Transportation Authority, which operated express buses over the Golden Gate Bridge serving the city from the north. The extensive transit services, combined with high levels of traffic congestion, meant that San Francisco residents and workers relied far less heavily on the automobile than their counterparts in other American cities. Nevertheless, there were still a substantial number of San Franciscans who used cars and parking spaces.
2 Shoup, Free Parking, p. 500. 3 Shoup, Free Parking, pp. 483-484.
3
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Residents. The largest source of parking demand in San Francisco was residents who wanted a place to park the cars they owned. San Francisco�s 776,733 residents lived in 329,700 households and owned 365,009 motor vehicles, for an average of 1.1 per household (Exhibit 1). Nearly one‐third (29 percent) of all households did not own a vehicle, and most of those with vehicles owned only one (42 percent) or two (22 percent). These 365,009 vehicles required
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