What would happen without parking requirements? Part 2 – Process

CC image from Joe Philipson

Following up on the previous post

Matt Yglesias links to Michael Manville’s paper, also highlighting the dual areas of inflexibility with zoning parking requirements: that the requirement is fixed at a level above market demand, and that the parking must be provided on site. On top of the rules themselves, the additional process required to earn flexibility from the requirements adds substantial time and cost to any applicant seeking flexibility.

Matt highlights a piece from Aaron Wiener in the City Paper’s Housing Complex column that demonstrates the real-world impact of these requirements, not just for real estate developers but also for entrepreneurs looking to open a business in an under-served neighborhood:

It’s a challenge that’s playing out across the city, with some developers opting to apply for exemptions from the parking minimums, which are usually granted, while others are discouraged from undertaking projects. But it’s a particularly acute problem in Anacostia, where retail is sorely needed and the market is still sufficiently unproven that developers are reluctant to take risks on ventures that could lose money. A requirement to build parking or apply for a variance adds an extra expense that can scare would-be retailers away—particularly when there’s not even space on site for parking, a common scenario in the historic neighborhood.

The documented example of the former H St Playhouse (looking to move to Anacostia) is a contrast to the flexibility in LA, where the adaptive reuse ordinance allows for developers to provide parking off-site. In Anacostia, the theater has control of the required spaces, but those spaces are not located on the exact same property. One could argue that the law mandating parking is misguided, but even when a business seeks to address the spirit of that law, it gets stuck on the letter of the law.

Some flexibility from the rules can be granted, but that requires a great deal of additional costly process for the applicant. So much real estate development simply follows the path of least resistance, meaning that cities should ensure that the path of least resistance leads to the city’s desired outcomes. More from Wiener:

“The city gave $200,000 in a grant to renovate [the Playhouse space],” saysDuane Gautier, CEO of the nonprofit ARCH Development Corporation, referring to funding last summer from the D.C. Commission on the Arts and Humanities; ARCH also provided a $50,000 interest-free loan to the Playhouse. “So basically one part of the city government is hurting the other part of the city government who wants this done quickly. It doesn’t make a lot of sense.”

A change like LA’s ARO is a strong step in that direction. Similarly, DC’s pending zoning code re-write is also a step in the right direction. The process spelled out by law matters a great deal and has tremendous impacts on the outcome (the kind of ‘seriatim decision making’ highlighted by David Schleicher).

I’m also reminded of another good DC parking article from previous Housing Complex writer Lydia DePillis one year ago, containing many anecdotes from developers with underutilized parking and/or experiences where the parking requirements forced them to reduce a development in size or abandon it completely.