Cashing-Out Employer Paid Parking in Minneapolis - St. Paul
Research partners: Minneapolis and St. Paul TMO Research funded by
the US EPA (Market-based Initiative Grant program) and MPCA Patty
Carlson, Manager Metro Commuter Services - Twin Cities Metropolitan
Council
Slide 2
Parking Cash-Out An employer-funded program under which an
employer offers their employees the cash equivalent of any parking
subsidy (California cash-out legislation) Provide employees with a
comparable incentive regardless of which transportation mode
used
Slide 3
Cash-out Results LA (Shoup) vs Twin Cities
Slide 4
Parking Cash-Out Options Full cash-out (CA Legislation) vs
Partial (Twin Cities) Employer leased parking Employer owned
parking (ie: shift to equitable transportation allowance) Suburban:
free parking the norm for developers and employers
Slide 5
Parking Subsidies Employer-paid parking (1999) Minneapolis CBD
- 13% St. Paul CBD - 34% Suburban: outside of two downtowns only
universities and hospitals charge for parking
Slide 6
Parking: If You Build it (and give it away) They Will Drive
Alone
Slide 7
University of St. Thomas Case Study
Slide 8
Subsidy TypeBeforePartial Cash-Out Parking Subsidy$138/month
Commute Alternative Subsidy $0$100 Drivers/ Non-Driver 207/31190/48
(8% mode shift) Subsidy/Employee$119.59$129.94 Total Commuter
Subsidy $28,463$30,925 ($2462) Background/Program University of St.
Thomas Partial Leased
Slide 9
Thrivent Financial for Lutherans Case Study
Slide 10
Background Before 800 drivers get free parking, others nothing
Management perspective: Lack of parking conflicts with treating
employees equitably Desire to create a flexible benefit while
asking employees to be accountable for choices Thrivent Financial
for Lutherans Full Employer-owned
Slide 11
Program After Cash-Out $100 transportation allowance Begin
charging for parking ($5/day) Metropass = $40/month additional take
home pay New incentive for pooling, bicycling or walking to work
14% shift from SOV to Non-SOV Increased costs offset by 30% MN
State Tax Credit Thrivent Financial for Lutherans
Slide 12
Supervalu Foods Case Study
Slide 13
Background/Program Faced parking limits Hoped to get traffic
signal at building entrance $3/day (at cafeteria or grocery)
pay-not-to-park incentive Impact: 6% fewer drive alones (car and
vanpoolers) Supervalu Foods Suburban
Slide 14
The Big Picture Region-wide costs: free parking nearly equal to
all externalities (i.e: congestion, crashes, pollution, etc)
Source: The Full Costs of Transportation in the Twin Cities
Metropolitan Region (U of M, Center for Transportation
Studies)
Slide 15
Transit Subsidies Level the Playing Field State transit tax
credit, federal tax-free, Metropass cut bus pass costs cut by
40-60% 20-40% increase in bus use at participating employers. Over
employers offer transit pre-tax Over employers subsidize transit
(>$3 million/yr.)
Slide 16
Why Changing Parking is Hard Cultural norms Parking still a
status perk Full cash-out not revenue neutral Economic development
objective trumps transit Parking subsidies used by Cities to
attract development Downtown direct subsidies, suburbs overbuilt
parking minimums Change is slow 1 st meeting with Thrivent
Financial for Lutherans two years before cash-out
Slide 17
Enabling Cash-Out / Transit-Friendly Parking Policies
Discourage bundling parking in office leases (Bellevue) Discourage
employer-specific parking Carsharing employers programs reduce need
for parking Proof of parking in suburban development frees up money
for on-site TDM Regional parking policy (Transit effective where
there are parking taxes or maxs)
Slide 18
Additional Resources David Vanhattum at [email protected] to
order executive summary of Twin Cities PCO report or for more
information The Myth of Free Parking Transit for Livable
Communities, www.tlcminnesota.org