Where did $2.50 come from?

One of the chief concerns expressed by skeptics of the proposed Clayton Street parking deck, it seems, is not the deck itself, but the impact the deck's construction will have on existing parking pricing.

There is a stated desire by the Athens-Clarke County Commission to set up an appropriate pricing system that encourages parking in the decks and away from metered, on-the-street spots, and the first step to achieve that was taken in March. It's that desire, not the financial impact of the parking deck, that is the driving factor for the ongoing evaluation of downtown parking prices.

The original article in the Athens Banner-Herald said that downtown parking rates would rise up to $2.50 per hour to pay off the debt, while this article detailing the disagreements between the 'Friends of Downtown Athens' and the commission noted the same thing ...

The county is funding about $11 million of the deck's cost - $5 million from a 1 percent sales tax that voters approved in 2004 and $6 million in bonds that will paid back with future parking revenue.

To pay off the bonds, officials project they will have to raise downtown parking rates to $2 an hour in 2011, $2.25 in 2012 and $2.50 in 2013. Rates now range from 50 cents to $1.50 per hour.

During an appearance on Newsmakers With Tim Bryant on WGAU 1340-AM, however, Athens-Clarke County District 10 Commissioner Mike Hamby suggested that across-the-board rate increases up to $2.50 were not necessary, and that the $2.50 per spot number was tied solely to the new parking deck.

Hamby, as well as Athens-Clarke County District Four Commissioner Alice Kinman, reiterated that point to me by noting that levying the $2.50 fee only on customers using that deck - while leaving all other downtown rates alone - would result in the generation of enough revenue to pay off the $6.1 billion bond obligation.

Projections suggest that 415 spots per day will be filled in 2011, the first year the deck will be open, and 485 spots per day will be used in 2012 and 2013. Assuming eight hours of usage for those spots and using two different formulas - one that assumes rates in that deck are implemented at $2.50 per hour in 2011 and another that assumes rates in that deck are gradually raised from $2 in 2011 to $2.50 in 2013 - the numbers add up.

Under the formula where fees are immediately raised to $2.50 per hour in 2011, $3 million in revenue would be raised the first year and $3.5 million would be generated in 2012. Likewise, under the graduated increase formula, those rates would raise between $7 million and $8 million over the three years.

Given that the Athens Downtown Development Authority has stated it has 450 cars currently on its waiting list for downtown parking, it's feasible see those projections realized sooner than later (though a portion of the funds will have to be allocated for operating costs).

The exploration of raising rates downtown has less to do with the need to fulfill the bond obligations and more to do with achieving parity in parking pricing downtown, as well as encouraging more individuals to park in decks.

Various commissioners have indicated they'd like to review downtown parking rates on a more regular basis. After the initial increase earlier this year, it was determined that those rates would be viewed more closely, and Kinman told me that any changes to the downtown rates would be a part of that process and not to solely offset the cost of the new downtown parking deck ...

It's worth keeping in mind, too, that this deck will be premium parking, in the middle of downtown, close to campus, and surrounded by entertainment venues. I could certainly envision a pricing system that would charge less for spaces, whether surface lots or on-street parking, that are around the edges of downtown.

In addition, some, like Athens-Clarke County District Five Commissioner David Lynn, have publically said they would like to see metered, on-the-street parking rates be more in line with parking deck rates, hoping such a move will encourage more individuals to park in the community's downtown decks.

However, both Kinman and Hamby said that desire doesn't necessarily equate into a uniform $2.50 fee for downtown parking.