*** Ack! Please see the coda at the bottom of this post. ***
If I were a sociologist I would examine the deeply irrational beliefs people having about parking. I’m serious. Start talking about meter rates or extending pay hours and you can pretty much throw logic right out the window.
Exhibit A is last week’s Seattle Times story on restaurants in the Chinatown/International District. Owners allege that business is down since metered parking was extended from 6 pm to 8 pm:
Restaurant owners and community leaders in the Chinatown International District say business is down by as much as 50 percent because of the change.
Down by 50 percent! That’s shocking. It’s the sort of number that someone might want to verify.
How might I do that? To start with, I’d look for the big city-wide picture, perhaps by examining taxable retail sales from restaurants in Seattle compared to King County as a whole. Starting in August 2011, Seattle extended parking hours in several center-city neighborhoods until 8 pm. The city also raised rates in a few of those locations, though not in Chinatown. That means we can get a sense of the effects of the parking policy by examining quarter-over-quarter sales between 2010 and 2011.
So what happened to restaurant sales after the parking change?
Seattle restaurant’s sales grew strongly—with growth in the city outperforming the county—for the third quarter of 2011, the most recent for which data are available. That’s according to the state’s Department of Revenue. It’s publicly available information.
But when it comes to parking, the numbers are a lot less fun than unsupported anecdotes. Like this one:
Seattle’s most recognizable chef, Tom Douglas, who noted that dining out is a discretionary expense and that the city was about to tack on an additional $5 to $8 to the cost of a meal.
“I thought it was going to be a big problem for customers and staff, and I think we’ve seen that,” said Douglas, who runs 10 restaurants downtown and in South Lake Union. Douglas said he couldn’t cite a specific dollar amount or percent of decline, but he said the city’s stated goal and the goal of restaurants are at odds.
“More empty spaces means fewer customers,” Douglas said. “It makes me crazy.”
Perhaps the reason Douglas couldn’t cite a number is that, in truth, Seattle restaurant sales shot up 5.7 percent from the third quarter of 2010 to the third quarter of 2011, when the new parking rates and hours went into effect. Of course, Douglas’ restaurants may have had different mileage, but it’s hard to believe he’s struggling: Doulgas opened 3 new restaurants last year, all in the South Lake Union neighborhood where on-street parking is metered and time-restricted.
Now, let’s take a closer look at the Chinatown/ID neighborhood. Here’s what the article says:
At the Sea Garden Seafood Restaurant on Seventh Avenue, which specializes in fresh fish and crab, owner Alice Chan said the dinner rush used to begin when the parking meters stopped at 6 p.m.
“Now people don’t come until 8, and there aren’t as many,” she said. “Business has dropped a lot.”
But that’s not what the numbers say.
Sightline asked for and received aggregated B&O sample data for a sampling of prominent restaurants in the Chinatown/ID neighborhood. How did these establishments really do?
From Q3 2010 to Q3 2011, sales increased by 1.9 percent. Then, in the fourth quarter of 2011—by which time the longer paid parking hours were fully in effect—gross receipts shot up a whopping 5 percent compared to the fourth quarter of 2010, before the parking change. In fact, the end of 2011—the era of extended meter hours—was a period of banner reciepts for these establishments.
Sure, there are plenty of caveats one should include. First and foremost, we’ll need more time and we’ll need to see more detailed data. Only then can we begin to accurately evaluate how local businesses have really done since the parking changes.
But I will say that the preliminary results should not be surprising. The alteration of meter rates and hours appears to be increasing access to local businesses just as it was intended to do. In the case of Chinatown, for example, one effect of extending metered parking hours will be to reduce the tendency of sports fans to do what I’ve done countless times: park on the street for free at 6 pm and walk a couple of blocks to the Mariners or Sounders game. That kind of behavior often occupies all the available street parking in the lower part of the Chinatown/ID neighborhood, making parking unavailable to restaurant patrons.
Extend metered hours by a bit and it turns out that economically rational sports fans find another place to stash the car, or they find a different way to the game. And that sort of thing seems to be precisely what’s happening. Not that rationality should ever enter our discussions of parking.
***
Clarifying notes: First, I want to make clear that I did not intend this post as an attack on Chinatown/ID business owners. Rather, I meant it as a call to inject more rational discussion—informed by numerical data and evidence—when we talk about parking policy. I was hoping to move the discussion beyond anecdotal reports from business owners who did not like the parking policy in the first place.
Second, I’ll say it again: we need data, more time, and a more thorough investigation to find out the true impact of the parking policy changes.
Finally, I wish I’d been clearer about one thing in the first draft of this post. In the second half of the post, I reported on some aggregated sample data that I received. I think it provides an important perspective, but because it is aggregated sample data I can’t say for certain how closely it corresponds to the experiences of other establishments in the neighborhood. I have submitted public records requests to obtain more data, and I will report on what I learn.
Chris Burke
Very good article. Certainly demolishes the Times article. Keep up the good work!
d33
Excellent article indeed, I love when someone crunches the numbers. However, I’ve noticed a distinct change in my friends’ attitudes about stopping off downtown for Happy Hour or dinner since the extended metering went into effect. I live downtown, but even I go out less because what fun is dinner if no one wants to pay for parking to eat downtown? My experience is just anecdotal, maybe my friends are cheap? Anyway, I wish they would change this. It’s bad enough that my friends can’t FIND parking downtown, and now they have pay for it all through dinner.
Matt the Engineer
“my friends can’t FIND parking downtown, and now they have pay for it” The two are mutually exclusive. The more you charge for parking, the easier it is to find a spot. Ideally, we’d charge just enough to always have a free spot nearby. Then businesses get more customers (almost same number of cars, plus much higher turnover), and people waste less time (and cause less traffic) circling for a spot.
Charles
Just for arguments sake, if the average dinner experience is 1.5 to 2 hours then would it really make any difference on turnover for those coming to park at 6pm if the parking were free or not free til 8pm? If not, then is the paid parking after 6pm really about capacity management or is it about revenue?
Matt the Engineer
Free parking means it’s hard to find a spot and there’s less turnover. Paid parking means it’s easier to find a spot, and there’s more turnover.
“would it really make any difference” Of course it would. Under the old system, you could park at 5 for the rest of the night for the price of 1 hour parking – or wait until 6 and get completely free parking. This type of parker includes those that may not move their car until last call at the bars, or until after a game, or until the morning when they leave for work – all low-turnover parking that doesn’t do restaurants much good.
Every time I’ve gone to the ID for dinner back when it was free after 6 I’ve had a terrible time finding parking. That knowledge is built into my choice on where to go for dinner. Knowing I now have good odds of finding a spot might encourage me to go to the ID.
Richard
Mass transit can be so much easier and cheaper to get to ID. Also the time spent to find a place to park the 2 ton vehicle can be awhile. Really, consider being treated for your mass transit phobia.
bigyaz
I ride the bus to work just about every day. But if I’m planning to have dinner in the ID and finishing around 9 or 10 p.m.? No, I’m not relying on Metro to get me home in a timely fashion.
Bob
This B&O tax data is not reflective of the neighborhood’s small business. The tax data used in this article was cherry-picked and only comprises 14 establishments in the entire neighborhood. Moreover, it is skewed by some very large businesses.
The 4Q11 B&O tax of $2.98MM compared to 4Q10 tax of $2.84MM is extremely large for only 14 businesses! The State B&O tax rate is only 0.471% and the City B&O tax rate for restaurants is only 0.215%. This totals a combined B&O tax rate for restaurants of 0.686%. Assuming the $2.98MM of B&O tax used here in 4Q11 comprises both State and City B&O tax, that implies gross receipts of $434MM in 4Q11 alone! I can tell you the largest of restaurant operations like PF Chang’s only does about $3-4 million per restaurant a YEAR!
The gross misrepresentation of data here is obscene.
Eric de Place
Hang on. I completely agree that the data are limited and partial. That’s why I clearly said in the post:
“…there are plenty of caveats one should include. First and foremost, we’ll need more time and we’ll need to see more detailed data. Only then can we begin to accurately evaluate how local businesses have really done since the parking changes.”
My work stands in stark contrast, however, to the ST article that included no such data analysis.
George
Given your hedging due to incomplete data, why is your headline so clearly declarative?
“Is Metered Parking Killing Chinatown? No.”
Instead of “No” why didn’t you say “Not So Fast, Seattle Times” or “Too Soon To Tell”?
To say “no” is inaccurate and misleading.
Eric de Place
I went with my headline because the evidence suggests it’s not “killing” Chinatown (in the sense of destroying businesses). It’s possible that the parking policy is having an adverse effect, but that’s not what the available data suggest.
George
Since I can’t reply to your reply below, Eric, I’ll insert it here:
Thanks for the explanation for the title. So, here’s my beef, more fully explained. I find it interesting that you chose “killing,” since no one in the Times article was making such a drastic argument. Cuts, even up to 50%, yes. Clearly some merchants are not happy. But no one claimed it’s singlehandedly sinking businesses, as “killing” suggests. To me, yours is a strawman argument. You chose killing so you could refute it. OK, that’s effective and wins some clicks, but doesn’t advance your cause as far as you’d like. Which leads to a question: do you get ad revenue from clicks? A bonus based on clicks? Do you have an editor to vet stories? I realize you want people to read your blog postings, and need to make them as compelling as possible, but with this posting I see how sensationalism can compromise your research work. In the end, I imagine your primary goal is to be taken seriously — the rational, adult in the room, so to speak, who looks at data that no one else has — so you can influence public policy, but the more you sensationalize and rush your postings, the less credible your and, by extension, Sightline’s work. If it’s necessary to sensationalize and immediately rebut stories to compete in today’s media market and policy debates, why not have that be the voice of someone else at Sightline not connected to research, or someone outside of Sightline? (Calling Sightline’s SuperPAC.)
Thanks for listening.
Eric de Place
I should add, too, that the tax data for the aggregated sample data is nicely corroborated by the city/county comparison data.
Eric de Place
Bob, I think you’re mis-reading the data. The $2.98 million you’re referring to isn’t tax revenue but rather “gross receipts.” That’s why in the blog post I referred specifically to “gross receipts.”
In other words, it looks about right to me. And it doesn’t imply crazy receipts figures of $43 million or whatever.
Bob
I saw the data you’re using. The description said “Tax”. Not “Gross Receipts”.
I-Miun
As a business owner in the CID, I have to say this article is extremely misleading. Just by throwing in a few data points without the context is like diagnosing a patient without knowing the symptoms. Does the author of this article own his own business? If he did, he would know that just because gross sales go up, it does not mean that restaurants are profitable or that the increase in sales is from dinner traffic from 6pm-8pm. I have had to increase our prices by 8-10% at the end of 2011. If you just look at what is reported, then of course, our gross sales are up. But not because of more traffic, its due to increased prices. And on a side note a 5% increase in sales is nothing, it doesn’t even cover the 5% increase in min wage and the skyrocketing cost of food, transportation, rent, etc, etc.
Chinatown ID is a very unique neighborhood to the northwest. People come here expecting lots of good food for low prices. Adding an extra $5 to their dinner bill of $15-$20 is a bigger deal than adding an extra $8 to a $$40-$50 Bill for two.
All I ask is that before you write an article about a neighborhood, you need to come down here everynight for a month and see the day and evening business first hand. At the very least come and speak to the business owners. That is true journalism, not sitting at a computer and randomly pulling data points that don’t even specifically speak to dinner time sales, and drawing conclusions. How often do you come to the ID for dinner?
Eric de Place
I-Miun,
I’m not pretending to do journalistic reporting; I’m intending to question the Times’ rather credulous reporting by sharing what limited data I could find, and by being clear about what the data amounted to. As I noted above, I clearly said in the post:
“…there are plenty of caveats one should include. First and foremost, we’ll need more time and we’ll need to see more detailed data. Only then can we begin to accurately evaluate how local businesses have really done since the parking changes.”
But it seems to me that you want it both ways: a set of business owners can be confident that business is down (by 50 percent!), but that their claims should be immune to attempts to verify with data.
I-Miun
I absolutely think that claims of a 50% drop should be looked into further. I agree that the city should not make changes just because owners are claiming huge sales drops. But that’s just the problem, there are no definitive investigations into this. The city is purely going off of data points that are inconclusive, such as gross sales. Has the Mayor actually walked the streets of the ID in the evening?
I believe that the Times article was a fair piece and did not seem to actually take sides. They were clearly voicing the concerns and objections of the community, but also stated the reasons why the mayors office make the parking changes.
Bob
Really? You think 14 businesses that did $434 million in one quarter is representative of the neighborhood? This implies these 14 businesses did $1.7 billion in annual revenue!
If you’re not doing journalistic reporting, then at least have the courtesy to ask the Times where they got their numbers, or at least come to the neighborhood to check the other side of the story so that you can double check the numbers. They belie all reason and have an impact on a community.
Eric de Place
As I noted in my reply above, Bob, I think you’re mis-reading the data. Just as I noted in the blog post, I’m reporting on “gross receipts” not tax revenue.
In other words, the figures look about right.
Bob
You can correctly infer that gross receipts went up by 5% if the tax went up by 5%. But what I’m saying is that the data that was sent showed “Tax” in 4Q11 of $2.98 million. Not “Gross receipts”.
Bob
As such, what I’m saying is the data is skewed by some very large businesses that are not representative of the majority of small businesses in the neighborhood.
Bob
Did you read the letter the neighborhood submitted to the Mayor’s office?
The letter outlined the following:
*The C/ID restaurants target “value-oriented” customers as the average dinner sale per patron is $10-12.
*When they have to pay $5 for parking, this is a 40-50% price increase to their dinner.
*Dining-out is an entirely discretionary spend; and our customers are going elsewhere.
*Parking data occupancy data showed that occupancy declined 10% in the first month the extended hours were implemented in Sept. 2011. Given many restaurant patrons still came in Sept unaware of the extended hours, this number is only expected to increase over time.
*When the neighborhood loses a customer who drives here to dine, we also lose incremental customers they dine with that use alternative modes of transportation.
*SDOT’s parking occupancy data showed an 18% decline in parking occupancy in First Hill when they raised rates by 100%. Yet First Hill comprises many healthcare facilities; people still need to see their doctors despite an increase in parking rates. So it would not be surprising to see a greater than an 18% decline in the C/ID where the usage is primarily discretionary.
Those are the numbers that supported the 30-50% decline in dinner hour business. While the Times did not put all this in the article, at least they asked.
Matt the Engineer
Even ignoring the higher turnover that paying for parking brings, how can you link a 10% decline in parking to a 50% decline in dinner hour business? What are the other 40% of people doing when they park?
Charles
Just for arguments sake, you could say the other 40% were in the same vehicles as the 10%.
Matt the Engineer
I think there are enough good arguments around here that we don’t need to start adding bad ones.
Charles
Matt, this was a serious question even though I may be playing devil’s advocate. it is not unreasonable to suggest that people coming to dinner come with their companions in the same vehicle at the same time. So, if the average party were 4 people and they “all” came by car, the a 1 to 4 ratio would make sense.
Now, I don’t happen to personally believe that ID businesses has been affected in the manner they are claiming but if we are going to look at it, it makes sense to look at the data and the issue’s they are claiming.
Further, it is a dangerous policy to enact fees and legislation that makes it more difficult to use the streets than before if there is not a clear benefit. If people feel inconvenienced then what is the offset? If the data does in deed show that business have lost revenue in the period after the parking change then that is a negative consequence. Social engineering people away from cars by erecting artificial economic barriers is a sure way to elect Republicans or pseudo libertarians who have their own agendas.
Cars will become untenable economically all on their own accord. We can take advantage of that trend by providing the best possible public transit solutions for people to continue to shop in this neighborhood. When gas is $5 – $7/gallon, people won’t care about the parking meters in ID because they won’t be driving. Until then, the city shouldn’t be pissing people off.
Soaked
Excellent article, and well-articulated replies in the comment section. I would be eager to see similar data analysis for some of the other areas of the city (downtown, pioneer square, capitol hill) where parking has risen recently.
Do you know of any existing studies? If not, would Sightline do some investigating? For more reporting like this, I’d definitely start giving regular donations.
Eric de Place
I’d argue we all need to see more data. (We’ll also need a bit more time to see how things evolve.)
I have a public records request pending with the city. I’m trying to obtain a more complete record so that we can be sure we’re getting the facts right.
Victoria
One aspect that no one has mentioned is the number of handicapped parked cars that stay on the street for hours on end. if you have a plackard there is no limit to the time you can take up a parking space. I work on the outskirts of chinatown and on any given day, 75% of the cars parked on any given street pay no amount to park at all.
DB
These are panicked suppositions being pawned off as facts. People love to panic about parking. Get a grip.
Slame
The connection suggested in this article seems dubious at best. I suspect that most folks would prefer to not pay for parking after hours. I propose that the reason restaurant proceeds are up is more likely due to improving consumer confidence rather than because people get to pay more for parking.
The additional cost and inconvenience certainly adversely influences my decision to go downtown, especially for any event such as a movie or show that lasts longer than two hours and cannot be accommodated in the two hour max time period. I do not really wish to turn the trip needed to feed the meter a part of the evening’s entertainment.
Pay stations that are extended until 8pm should allow payment for 3 hours after 5 pm. Current policy certainly creates more available on-street parking spaces… because folks trying to go downtown for the evening are forced into the private lots! Who was it that really lobbied for this policy change?
Matt the Engineer
“I suspect that most folks would prefer to not pay for parking after hours.” And most folks would prefer to pay for gas, or for their food. But the fact is that most people are paying for parking after hours, like it or not (hence the low vacancy rate in parking, even with the charge).
“especially for any event such as a movie or show that lasts longer than two hours and cannot be accommodated in the two hour max time period” That’s not what street parking is for. You are leaving your car in front of someone’s restaurant while you run off to a movie for hours, depriving the next customer of that space. Your car belongs in a lot, not on the street.
Matt the Engineer
(“most folks would prefer not to pay”)
Ty Myers
I’m a downtown Pioneer Square business owner and have been here for 12 years. I am not in the restaurant business. I fought very, very hard to stop the parking change and caught the department of transportation with fraudulent documents that helped the mayor’s initiative to raise the parking in the area. I sat at all of the council meetings and protested aggressively that the parking increase would destroy small, independent business in the area.
Now, at this time, cresting on a 37% vacancy rate in the area, we’re starting to see the fruits of the higher parking. I have lost 35% of my business from last year. The shop next door to me, which sold local art, had lost 90% of it’s daily revenue and opted to leave at the end of their lease.
Today, April 17th, 2012, I drove from my shop, in Pioneer Square, where I paid $3.50/hr to park into Belltown where I paid $2.00/hr to park. What most of you guys in this blog are not understanding, and which should aggravate you greatly, is that parking DIDN’T go up everywhere. In some places, it went DOWN significantly (i.e. Belltown). This would lead one to think that people will now shop in Belltown instead of other areas with higher parking. This is called steering the market. This is what we should be angry about.
The higher parking is destroying the diversity of the Internation District, Pioneer Square, and the city’s core, while strengthening the market share in Belltown. This has become very obvious over the last 10 months.
Eric de Place
Ty,
I removed the last paragraph on your comment post because it contained obscenity that we don’t allow on this blog.
Two questions for you:
1. Can you point me to data showing there’s a 37% vacancy rate? If so, that would suggest that prices are, in fact, too high and that according to its stated policies the city should adjust them to maximize occupancy.
2. How are you able to attribute revenue changes to parking policies? For example, how can you be sure that at 90%(!!) drop in revenues is because of relatively minor changes to on-street parking prices? Might it not be the truly enormous road construction project that is severely altering vehicle traffic in Pioneer Square? Might it be a long-term decline in perceived quality of life there (the sort of thing that provoked Elliott Bay Books to depart well before the parking changes)? Might it be something else or a combination of may factors?
Eric de Place
Ty,
You might also enjoy my follow up post:
http://www.sightline.org/2012/03/28/is-metered-parking-boosting-business/