To the editor:
From the perspective of economic first principles, contrary to the previous letter published on Jan. 9, the newly proposed parking rates make perfect sense.
Fundamentally, the price of goods and services is determined by the market, that is, supply and demand. Currently in the two city owned parkades there are a lot of vacant spaces and not many cars filling those spaces regularly. High supply and low demand. In these market conditions prices are lower.
Contrast that with parking at street level. At the waterfront, for example, there are fewer spaces and more regular park visitors looking for a space. Low supply and high demand. In these market conditions prices are higher.
By setting parking rates that conform to market conditions, the Parking Authority is able to take advantage of market incentives to increase demand for use of the parkades. This tactic also has the added bonus of lowering parking enforcement costs that are borne by the tax payer as there would be less of a need to enforce time limit restrictions for those higher demand street level spots.
People respond to economic incentives. Having lower parking rates at the parkades combined with higher rates at street level spaces will incentivize people to use the parkades and walk through our downtown neighbourhoods. This will create a cascade of positive spillover for our local economy:
- increased foot traffic to our local businesses and downtown storefronts
- decreased traffic congestion along our tight downtown streets
- increased opportunity for community interaction, engagement and community building from a grassroots level
- increased opportunity to engage in a healthy active lifestyle by encouraging more outdoor walking
- increased incentive for people to use our public transit system
While it may appear that the street-level parking users are ‘subsidizing’ the capital costs of the parkades, in reality the Parking Authority’s proposed parking rate schedule is in fact conforming to standard economic based policy that is designed to bring the most value to our public spaces and our public goods.
Cory Bagdon
