Published HBT 4 July 2017
The
era of free parking in the Hastings CBD is over and there have been
many letters and text messages protesting the move. Of course free
parking to one person means someone else is footing the bill.
The
experiment started two years ago following a symposium in August 2015
when the CBD was in serious decline, a situation many blamed on the
HDC decision to sell Nelson Park and allow the site to be developed
into the Mega Mall. At the Symposium the Hastings City Business
Association suggested free CBD parking would attract shoppers back
into the CBD.
On
Sept 24 the Hastings Council opted for a four month trial from
November 2015 to Feb 2016 funded to the tune of $330 000 from the
2014/15 rating surplus even though a similar 2013 trial in Rotorua
and trialling of a more complicated system in Nelson suggested
disappointing results were likely.
Whilst
a 13.4% annual lift in retail sales followed the trial, the increase
was even more pronounced for both those retailers operating after
normal hours and those located outside of the CBD (presumably Mega
Mall and The Plaza), suggesting the increase was due more to a
general lift in the economy.
On
Feb 18 2016 the Council extended the trial to 30 June 2016 but
reintroduced paid parking for the pay and display areas. An annual
plan consultation process was established to determine the
communities preferences. Whilst CBD businesses and shoppers, not
unexpectedly, were in favour of “free parking” tear off forms
sent to household with the Annual Plan statement showed 80% preferred
meters whilst a citizens Citizens Panel favoured meters by 68%.
The
only decision then made by councillors was a further extension of
free parking to December 2016 (perhaps helped by the proximity of
elections) when the decision was made for a fourth trial to 30 June
2017 plust more community consultation.
This
last round of consultation revealed a similar 68% support for a
return to meters rather than a $22 annual increase in rates.
For
various reasons adding parking costs to rates is inequitable. Many
retailers including big boxes and supermarkets provide their own
customer parking and pay council rates on those parks. Some people
don’t own cars, whilst rural residents especially those north of
Napier seldom if ever come into the Hastings CBD. Additionally out of
town shoppers would have effectively been subsidised by locals.
At
one dollar an hour for meters or 50 cents an hour for “pay and
display” Hastings must have the cheapest parking in the country.
The lack of technology solutions for payment will be remedied with
the introduction of the “Park Mate” mobile phone payment system,
though there is a small additional user cost.
Though
the average increase in urban rates in the coming year is only 1.4%
this does not tell the full story. Valuation changes mean Havelock
North and Hastings property owners will experience significantly
larger percentage increases. Had the $22 annual parking charge been
applied, Hastings rates would have increased by around 1% more on
average and Flaxmere ratepayers by an even higher percentage.
The
cost of the trials is put at $805 000 paid from rates surpluses and
parking reserves. These funds might have been better employed
providing more off street parking.
Annual
revenues from parking meters and “Pay and Display” parks total
nearly half a million dollars a year. Had retailers and other CBD
businesses been serious about the benefits of “free parking” they
could have offered to contribute directly. After all whilst
increasing valuations in Hastings and Havelock North will result in
an increased share of rates falling on residential areas, CBD
property owners will be better off because of the reduction in
values.
Clearly
the CBD is experiencing a renascence but the reason as recently
explained by one property owner is the influx of new people into
Hawke’s Bay. It was good whilst it lasted but there is no such
thing as a free meal.
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