The City of Newark is betting on a new deal for people who visit Main Street during the University of Delaware's winter and summer breaks: free parking on weekends, but no more discounted parking during the week.
With the move, officials are attempting to strike a delicate balance that allows the city to boost revenue while at the same time scoring a public relations win.
The new pricing structure will be tested this winter from Dec. 16 until Jan. 19. If successful, it will be extended to the summer.
By eliminating discounted rates during the week, officials estimate the city will net an additional $47,000 in parking revenue this winter, even after factoring in the free weekends.
“I do think that we'll be able to see some revenue increases for us, as well as hopefully some positive PR and positive feedback from folks,” said Planning Director Renee Bensley, whose department is in charge of parking.
Newark raised its parking fees in January 2023. Parking lots increased from $1 per hour to $2, and most on-street spaces increased from $1.25 per hour to $2.25.
For the past two years, the city has reverted back to the old rates during the winter and summer, hoping to lure in visitors during traditionally slow periods when UD is out of session. However, while the discounted rates have cost the city $300,000 in lost revenue, they have not increased visitors the way officials hoped.
“The act of paying is often a bigger obstacle to the individual than the cost of the parking itself,” Bensley said. “With that in mind, discounted parking is often not the best incentive to get individuals to come downtown to patronize our local businesses.”
Bensley said she has heard from business owners who are struggling due to the parking rate increase and years of construction on Main Street.
“What we're hearing from downtown businesses right now is they're really hurting,” she said.
Officials hope that with the right marketing, especially tied into holiday shopping opportunities, the promise of free parking will move the needle in a way that discounted parking did not.
“If people hear 'free,' they go,” Councilman Jason Lawhorn said, adding that he often hears from people who avoid downtown Newark. “They won't come here because parking stinks, but if you see 'free,' for some reason I that's a good marketing gimmick.”
The city also considered making parking free on weeknights during the winter and summer, a move that would still provide a net revenue gain. However, city council rejected that idea over fears that it would encourage troublemakers to congregate in parking lots at night.
Among the other changes approved by city council was raising the minimum charge for on-street parking from 25 cents to 50 cents. At 25 cents, the city actually loses money on the transaction due to credit card processing fees.
Time limits for on-street spaces will be increased from two hours to three. The limit was implemented to encourage turnover of the most desired spaces, but with lower demand for parking, that is no longer necessary, Bensley said.
“We think it would encourage people to stay longer,” Bensley said, adding that perhaps someone coming for dinner would also stick around for dessert or to do some shopping. “It would have a little more inviting feel where we're not trying to rush you out the door after two hours.”
The cost of on-street spaces on Haines Street and Lovett Avenue will be increased from $2 per hour to $2.25, bringing them in line with Main Street spaces. The city originally made those spaces cheaper to incentivize students to park in less desirable areas, but the spaces have proved so popular, a discount is no longer necessary, Bensley said. The increase will bring in up to $18,000 more each year.
The city also will begin offering long-term parking permits for on-street spaces on New London Road and the far east end of Main Street. Those spaces see low demand, and the permits will offer people who work or live on Main Street a lower-cost parking option.
Meanwhile, a behind-the scenes change in the way the city processes credit card payments for parking will save the city as much as $90,000 per year.
Most Popular
Comments / 0