Monday, January 29, 2018

Economic Development Roundtable Issue One: Parking Minimums

Brandon Figliolino
PUAD 6600 Economic Development
Issue Roundtable #1: Parking Minimums in Olde Town Arvada
January 29, 2018

            On January 22, 2018, the Arvada City Council rejected a preliminary development plan for a mixed-use apartment building.  The 9-acre site currently sits unoccupied; it was once a parking lot managed by RTD that is no longer in use. If approved, the apartment complex would have created an additional 250 residences for the city. Despite the recommendation for approval by city staff, City Council nixed the plan on a 4-3 vote (Fortier, 2018).
            According to city staff, the project, which was to be developed by Trammell Crow, would have had large economic benefits for the city.  Located just south of the Olde Town Historic District, the luxury apartments would have provided revenues that would “far exceed” the value of the land the city’s urban renewal authority (AURA) sold to the developer (Fortier, 2018).  Because of its proximity to several major commercial hubs, the apartment complex would have afforded residents quick access to many shops and restaurants; the sales taxes generated by those purchases would have gone to the city.
            One reason the preliminary development plan was rejected was due to citizen concerns over parking (Fortier, 2018).  Trammell Crow planned to offer less on-site parking than what was required in the city’s land development code.  Residents feared that by not offering adequate parking, residents would take up valuable spaces in Olde Town and surrounding neighborhoods, inconveniencing others who live near the project.  From an economics standpoint, they could argue that if residents of the apartment building took up parking spaces in the commercial areas, it could discourage others who don’t live within walking distance from shopping or dining in the area.  If that were the case, the city might lose out on sales tax revenues, and businesses potential customers.
            Regardless of the concerns of neighbors, Trammell Crow made the right decision to reduce parking in the project for many reasons.  First, the land they own is relatively small.  By reducing the number of parking spaces, and instead increasing the number of units they could sell, Trammell Crow maximized the property’s potential for generating revenue.  While they could, and most likely would, charge residents a fee to park their car, that fee would be nominal compared to the amount of money they could collect on renting additional units.  Not only does reduced parking benefit Trammell Crow, it also benefits the city by increasing the number of residents who could live, work, play, and shop in the city.  Since they are within walking distance of Olde Town, they most likely would not need a car to participate in Olde Town’s economy. 
            Second, since the project is close to a developing transit corridor, the reduced parking would help incentivize multimodal transportation.  Not only would it help foster wellness and active living, encouraging residents to walk, bus, and bike reduces congestion on the roadways.  This would make commuting easier for city residents who are not close to transit lines and need to use their cars to travel.
            By rejecting the Trammell Crow development, the Arvada City Council is rejecting alternative transportation and encouraging car ownership.  Instead of acting as vanguards for innovative thinking, they are sticking with the status quo—the antiquated land development code.  If a new project is proposed, it will most likely have more parking.  Adding more parking spaces will reduce the number of units available, lowering their profits.  It will also encourage car ownership, which will increase congestion caused by vehicles, and hurt RTD’s revenues from increased bus and commuter rail trips.  While the residents will believe they won they may end up losing, in terms of economic development.
            To better promote the benefits of reduced parking requirements, city staff, AURA, and the developers of future projects should engage with the public more.  Performing extensive outreach in the neighborhoods will help those unfamiliar with economic development better grasp the benefits of such a policy.  With that knowledge, they may be less likely to voice concerns, sparing innovative projects from being shelved.

Fortier, S. (2018) “Council votes down Olde Town Residences development plan.” Arvada Press. Jan. 23, 2018.

            

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