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n the Twin Cities region, drivers rarely think about parking; parking spaces are abundant at all but a few locations and most appear to be free. Public officials typically focus on ensuring "enough" parking to satisfy demand and ignore the problems of oversupply and subsidization. Even most employers fail to question the long-standing practice of providing employees and customers with "free" parking.

The full costs of parking
While vehicle parking provides benefits, those benefits come at a cost — a cost that is often higher than people realize. The cost to construct a single parking stall in a typical above ground ramp is $15,000, and the maintenance costs are hundreds of dollars per year. In the Twin Cities metropolitan region, more money is invested annually in parking and driveways by government, individuals, and businesses than is invested in streets and roads. Furthermore, government's investment in public transit in the Twin Cities metropolitan region is less than government's investment in parking.

Parking also has hidden costs and unexpected consequences, especially when it is oversupplied or provided at no cost to the user. Parking plays a key role in low density development patterns and high dependence on the automobile in the Twin Cities region. "Free" and abundant parking contributes to growing congestion by providing an incentive for driving alone and a disincentive to use other forms of transportation. Too much parking can detract from a "community feel" and pedestrian environment in neighborhoods and business districts. Parking also affects housing affordability by increasing construction costs. In addition, too much parking negatively impacts water quality and urban temperatures.

A proactive approach
Recognizing these problems, some public agencies, municipalities and employers are taking a new approach to parking policy. Some employers are charging employees for parking and are providing incentives for other modes of travel. Public sector leadership is coming from Oregon where the state legislature requires metropolitan areas to reduce parking spaces per capita and the regional government for the Portland metropolitan area placed region-wide limits on the amount of parking municipalities require.

Other cities are using strategies to reduce the need for parking and better balance supply and demand. Iowa City, Iowa and St. Paul, Minnesota have established special "traditional neighborhood" zoning districts with reduced parking requirements that encourage walkable, transit-oriented development. The City of Seattle provides technical assistance to neighborhoods on parking management. Many cities, including Minneapolis, require employers to implement plans to reduce drive-alone trips by employees. The City of San Francisco uses a parking tax to fund a significant portion of the budget for MUNI, the city's public transit agency.

Recommendations for reforming parking policies and practices
In the Twin Cities region, employers, government agencies, and local units of government all have a role to play in reforming parking policies and practices. This report recommends a number of different strategies; the primary ones are described here.

Employers and business
"Free" parking is a significant factor in commute decisions because it results in a subsidy for driving. Employers should charge employees and customers for parking, or at a minimum, provide equal incentives for use of transit, carpooling, biking, walking and other modes of transit.

Local government
Municipalities should evaluate local parking requirements to ensure they are accurate and consistent with goals for housing, transit ridership, density, pedestrian access, and environmental protection. Parking charges at municipal parking facilities and meters should reflect the full cost of providing the parking. In addition, municipalities can work with neighborhoods and businesses to ensure that the existing supply of parking is managed effectively. Tools such as setting a parking cap, taxing parking usage, or charging fees in lieu of parking should be considered.

Metropolitan Council
Regional strategies are crucial to adequately address the negative consequences of parking that is oversupplied or subsidized. The Metropolitan Council should address parking policy more fully in its regional planning and transportation documents. It should consider establishing region-wide minimum and maximum parking ratios and set a goal for reducing parking spaces per capita. Modeling for major transportation projects should examine the effect of employers charging for parking or increasing parking charges as a method to reducing drive-alone commuting and traffic congestion

The Minnesota Department of Transportation (MnDOT)
Planning documents should recognize the important role that "free" and abundant parking plays in rising levels of traffic congestion and low rates of transit use and carpooling. MnDOT should also provide technical assistance to local units of government on parking surveys, parking management and other best practices.

State of Minnesota Legislature
The legislature should adopt legislation that establishes a goal for reducing parking spaces per capita. It should affect direct state and regional agencies to adopt policies to reduce the need for parking and better manage supply and demand. The legislature should increase funding for public transit and evaluate transit fares in light of the availability of "free" and subsidized parking. Finally, the legislature should require all state employees to pay the full cost of parking or provide an equivalent benefit for carpooling, transit use, walking, biking and other modes.