Parking
Taxpayers foot bill for parking giveaway in Silver Spring
Montgomery County just spent millions to build a new parking garage in Silver Spring. Just one block away, another garage is so underused that the county wants to hand half of it over to the Discovery Channel for pennies on the dollar.
The 592-space Kennett Street garage in south Silver Spring sits mostly empty. Montgomery's Leggett administration has just proposed leasing 300 of its spaces to Discovery for the cable company's nearby offices. The proposed deal would give Discovery exclusive use of the spaces for 13 years at an annual rate of $240,000, or just $800 per space per year.
Only a few weeks ago, a 152-space public garage opened around the corner on 13th Street. The cost of this garage is difficult to estimate because it was part of a package deal that also built affordable housing, but a garage under a similar mixed use project in Bethesda cost $64,000 per space.
The $800 per space per year that Discovery would pay won't even cover the interest on a $64,000 parking space.
So many things are wrong with this deal that it's hard to list them all. It's an unnecessary giveaway to a prosperous private company that has already received millions from the county. 300 parking spaces currently open to the public will be fenced off and unavailable to others. And everyone will suffer from the traffic and pollution that subsidized employee parking creates.
Meanwhile, neighbors who park in the Kennett Street garage are upset because they will soon be charged double what Discovery would pay.
Public parking is out of control in Montgomery County. It's heavily subsidized by taxpayers; the bonds sold to build garages in Silver Spring are paid off out of the county's general fund. Yet the county went to the expense of building a new parking garage when an existing garage one block away is full of empty spaces.
When Montgomery can't find anything better to do with its garages than give them away, it's a strong signal that it's time to stop building new ones. In a county desperately short of affordable housing for people, affordable housing for automobiles does not deserve to be a priority. Parking should pay for itself in Bethesda and Silver Spring.
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by Rebecca on Mar 28, 2012 10:38 am • link • report
If the deck is virtually empty, then $800 per parking space will raise a lot more money than $0 per parking space that they would raise. If there's too much public parking already, then the deal would help alleviate that problem by removing 300 spaces from public use, raising the cost of using the remaining parking spots. Isn't that one of the things this blog usually supports? Do what you can to make parking more expensive so that people will use transit, instead.
If he's upset about the county having built the deck--rather than housing--in the first place, that's fine. But "Housing > New Parking Decks, therefore don't lease existing parking spaces to Discovery" is a bit of a non sequitur.
by Ronald on Mar 28, 2012 11:02 am • link • report
by Answer Guy on Mar 28, 2012 11:27 am • link • report
Very few shops/retail face the street in South Silver Spring. People don't go there. People who live there (like my mother) don't shop there, they go to other parts of Silver Spring.
Furthermore, if I worked at the Discover Channel, I would hate that walk every day. What an unfriendly pedestrian environment along East-West and Colesville! Instead of that awkward set-up, why not revitalize South Silver Spring and reserve those parking spots for future retail costumers and other visitors
by Dave Murphy on Mar 28, 2012 11:28 am • link • report
Many if not most of those visitors drive. They need parking. Montgomery County is open-minded and realistic enough to recognize and plan for it - and make a little money in the process - instead of taking a hostile position toward drivers and treating them as a nusiance and a cash cow - as does DC.
Montgomery County should be commended.
by ceefer66 on Mar 28, 2012 11:59 am • link • report
If we paid 90% of the cost of helicopter trips for people to come to downtown Silver Spring, most visitors would come by helicopter. If we heavily subsidized buses and made parking difficult, people would ride buses.
If people "need" parking, then they should pay for it. At market rates.
by oboe on Mar 28, 2012 12:12 pm • link • report
I like the garages and they are part of the economic landscape that makes Bethesda and Silver Spring a regional destination (oh, the horror). Having said all that, the pricing is questionable and the free weekend parking should probably be ditched. My office overlooks the Waverly garage, which is less than a block from the Bethesda metro, and there were probably less than 20 cars parked on the roof in a year; Overpriced? Wayne Avenue garage in Silver Spring is packed on many evenings; Underpriced? The garage spots that the county is 'giving' to Discovery; oversupply in the wrong places?
I do wish the county would be smarter about its parking facilities (especially pricing) but I think they are an important aspect of the economic attraction of Bethesda and SS. By the way, what's the deal with the LED signs that used to tell you how many spots were available on each level of the Wayne Avenue garage? - they used to have goofy numbers (5374 spots on level 3!) but now they are dark.
by josey23 on Mar 28, 2012 12:46 pm • link • report
Silver Spring is a regional destination, and people will continue to come here by car, meaning that some parking has to be provided. But it's expensive to build parking, especially in structured garages or underground, so it only makes sense that the county can recoup its expenses by charging a reasonable amount for it.
by dan reed! on Mar 28, 2012 1:02 pm • link • report
Also, it's my understanding that the Spring-Colesville garage will not be renovated, but will be torn down, for exactly the reason Rebecca noted, "the county found that all of the parking in this garage could be absorbed by the other 2 garages within 2 blocks." Then the property will be surplused.
by Mike on Mar 28, 2012 2:57 pm • link • report
If the garage isn't making the county money, it should be sold. The land itself is quite valuable and something else could be built there. If Discovery really wants that garage and the land they can buy it themselves.
Just because the garage is underutilized doesn't mean leasing it to a private company for below market value is the solution. The real solution with Kennett is for the county to sell it and for someone else to find a more fitting use for it.
Discovery itself is somewhat of a cancer on South Silver Spring too. Right next to a residential building, pocket park and sidewalk sits their diesel backup generator that spews exhaust into people's homes and lungs. When it is firing, it's like standing next to I-95 while a bunch of 18-wheelers go by. Perhaps worse.
Discovery doesn't even have the decency to either find a more environmentally and human friendly backup source or to move the facility on top of their own building.
I'd rather see Discovery leave South Silver Spring than to continue giving them tax payer handouts.
by Patrick Thornton on Mar 28, 2012 3:03 pm • link • report
by Shannon on Mar 28, 2012 3:14 pm • link • report
Silver Spring has too many public garages that sit unused and the ones that are used don't charge enough. The Wayne Ave. garage is always packed, especially on weekends. Much of that time parking is free! It's prime real estate, and people should pay market rates for it.
And then there are the random garages strewn through ought Silver Spring that go underutilized. Those should be sold and converted into mixed-use with parking underground.
by Patrick Thornton on Mar 28, 2012 3:16 pm • link • report
And for some reason people hate to pay for parking out of proportion to its actual cost. That's not necessarily rational economic behavior...but as Keynes once said, a market can stay "irrational" longer than a man can stay solvent.
by Answer Guy on Mar 28, 2012 9:35 pm • link • report
Unfortunately the PLDs in Silver Spring and Wheaton (Montgomery Hills one is quite profitable as well) have not been as financially suscessful because of oversupply in Silver Spring and a underutilized garage in Wheaton. The county is taking steps to redevelop underutilized lots but this will take time.
Parking is profitable thats why the private sector is in the business. Montgomery County has the infrastructure to reap great profits from its parking operations.
by Cyrus on Mar 29, 2012 12:37 am • link • report
by HandySandy on Mar 29, 2012 2:34 pm • link • report
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