Parking In-Lieu Fees

• Author: Quinn Le Frois
• Pages: 152-156

152 Sustainable Development Code: Climate Change

PARK ING IN-LIEU FEE S

Quinn Le Frois (author)

Charlie Cowell, Tegan Jarchow, & Jonathan Rosenbloom (editors)

INTRODUCTION

Parking in-lieu fees, also known as “Park and Walk Systems,” are generally

used in larger cities and suburbs. ey a re often utilized if a dened area has

sudden development growth or there are multiple establishments renovating

their proper ties.1 ese fees are in-lieu of having or meeting individual o-

street park ing requirements.2 Pursua nt to ordinances with parking in-lieu

fees, new developments are required to pay a fee into a designated fund.

e monies from parking in-lieu fees are used to pay solely for one or more

larger parking developments3 that serve an entire district.4 e parki ng areas

should be centrally located, so that pedes trians and shoppers have easy access

to businesses.5 Since the larger parking developments serve an entire d istrict,

the parking area must be st rategically placed for ful l accessibility to all the

participants within t he district.6 Depending on the jurisdiction, the parking

developments are often “managed by the city, parking authority, or master

developer.”7

e in-lieu fees may be mandatory or voluntary depending on the juris-

diction. 8 Local governments can either require developers to pay the fee, or a

developer can choose to pay the fee or provide individual parking.9

Fees are typical ly set using two approaches.10 e rst approach is to

calculate a at rate for each park ing space not provided.11 is at rate is

also known as a “uniform fee.”12 A uniform fee is a tangible way for devel-

opers to incorporate the proposed fee into their nancial ana lysis.13 e

fee calculation can vary by jurisdiction, but can involve variables such as

building gross square footag e, gross parking demand, net parking demand,

and parking provided on site.14 e second approach is to determine appro-

priate development-specic fees on a case-by-case basis.15 is approach is

seen as more time-consuming and expensive because of the specic nature

of each case.16