Iowa City cuts downtown parking rate hike after complaints

IOWA CITY — Iowa City is decreasing its metered parking rates from $3 to $2.25 an hour in the central business district and establishing an evening/weekend parking permit after concerns were raised by downtown businesses and visitors about recent increases.

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In July, the Iowa City Council approved a rate increase, the first in over a decade, to help cover the cost of maintaining parking facilities and the city’s free transit program.

Mayor Bruce Teague and council members Josh Moe, Laura Bergus, Shawn Harmsen, Megan Alter, Mazahir Salih voted in favor of the decrease. Council member Andrew Dunn was opposed, citing concerns over the loss of revenue.

The city projects a loss of $300,000 in revenue as a result of the decrease.

The new evening/weekend parking permit, priced at $67.50 a month, is expected to bring a little over $15,000 in revenue for the city. Those with evening/weekend parking permits can stay in the ramps from 4 p.m. to 9 a.m. on weekdays and all day on weekends.

Outside of the central business district, all metered parking is $1.50 per hour.

‘Sticker shock’

Shortly after hourly metered parking rates were raised from $1.50 to $3 in the central business district, the Iowa City Downtown District began fielding “sticker shock“ concerns.

The Downtown District wrote a letter asking the council asking members to reduce the rates and establish an evening/weekend parking permit. Greater Iowa City Inc. wrote a letter in support of that request.

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“We wanted to make sure (the council) understood the concerns of the business community and from downtown customers and stakeholders. And I know every single one was very grateful to know how people are feeling,” said Betsy Potter, executive director of the Iowa City Downtown District.

Potter said the Downtown District received input about parking cost from visitors, office owners and businesses.

City staff had originally recommended that council raise the parking rates in the central business district to $2 per hour. Council members decided on $3 per hour.

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“The nature of good compromise is that no one is exactly satisfied, but I think that (lowering the rates) is the right step for still appearing welcoming to those who want to come downtown, while still saying there's a premium price for parking on the street,” Megan Alter, council member, said at the Sept. 3 council meeting.

Throughout the process of changing parking rates, the council has encouraged parking in one of the city’s ramps to allow turnover in the metered street parking spots.

The first hour is free in all city parking ramps, then $2 per hour after that. There are no time limits in the ramps. Before July 1, parking in the ramps was $1 per hour.

Downtown workers

The Downtown District also suggested the new evening/weekend permits for downtown workers.

The goal is to offer downtown employees who work non-traditional hours an affordable parking option, one that also leaves metered spots available for visitors.

The evening/weekend permit is available to downtown employees at a discounted rate, about 75 percent of the normal permit cost.

“We are incredibly grateful that (council members) were so open having the conversation so quickly,” Potter said. “We’re very grateful that the six members of the council decided to have the conversation in a very thoughtful way and support this change.”

Comments: megan.woolard@thegazette.com