NOVEMBER 27, 2015 LAST UPDATED: FRIDAY, NOVEMBER 27, 2015, 12:31 AM
THE RIDGEWOOD NEWS
Parking revenues can support largest garage
To the Editor:
The Financial Advisory Committee (FAC) of the Village of Ridgewood in a previous statement strongly supported the proposal to construct a parking garage at the site of the existing Hudson Street parking lot.
The FAC conducted its own independent analysis of the costs and revenues associated with the proposed parking garage. Using very conservative assumptions (no new revenues, construction costs as high as $14 million and interest rates as high as 4 percent), the garage can still be funded entirely by parking revenues, with moderate increases in hourly parking rates and hours.
There are currently three proposals under consideration. From a strictly financial perspective, the proposal to build the largest 405-spot garage for an estimated cost of $12 million and a net gain of 305 spaces makes the most sense for the following key reasons:
As with any construction project, most of the cost is involved in building the first two levels, so we get greater benefit from the additional levels and a lower average cost per space with a larger garage — especially compared to building multiple smaller garages in various locations around the village. The first 306 spaces will cost $10.1 million or $33,000 per space, but the next 99 spaces (if we build the largest garage) will cost only an additional $1.9 million or $19,200 per space, which is a considerable savings. (The comparable numbers for the mid-size garage are 49 additional spaces for an additional $0.9 million, or $18,400 per space.)
From a long-term investment perspective the largest garage gives us capacity in the core business area of approximately 140 spots above what will be needed to simply replace the spots lost when the Brogan and Ken Smith lots are developed. If we go with the smallest garage, we are barely replacing the spots that will be lost and are thus making an investment that does not significantly improve the existing parking deficit or provide for growth. Further, the cost to expand the smaller garage at a later time would be cost prohibitive so we believe it is prudent to make this long term investment now.
Although the analysis we performed did not include new revenues, maximizing the number of spots enhances the attractiveness of existing stores and restaurants, and encourages new businesses owners to choose Ridgewood, which provides for the possibility of increased tax revenues from downtown properties.
Given the cost and effort involved in this project, it is clear from a strictly financial standpoint that maximizing the impact on improving the village’s parking situation is best accomplished by building the largest garage. That said, the financial argument must be considered along with other non-financial factors.
Robert Broatch, Richard Cundiff, Charles DiMarco, Nancy Haig, Mac Highet, Nancy Johansen, Janice Willett, Evan Weitz, Jimmy Yang
Financial Advisory Committee
Village of Ridgewood
