Quite simply, parking equals tax loss.
On a recent charrette in Bethel, CT, a small town of 18,000, residents we performed a tax analysis of property tax paid by property owners in the town’s retail center, a charming New England street with many shops packed tightly together in typical 2-story buildings.
We analyzed one of the tightly-packed 2-story buildings with no parking (the building basically covers its entire .16 acre lot), which pays what we calculated to be $133,000/acre, while an adjacent grocer with off street parking on 4 acres in the same tightly-packed location pays what we calculated to be $37,000/acre.
In other words, in a location which could easily accommodate a continuation of building types it already has, building types that generate significantly higher tax yield/acre, the town’s taxpayers are forced to make up the difference in their own taxes to the amount of approximately $384,000 per year just to the advantage of the one grocer for the privilege of the grocer’s customers to have free and convenient parking in an otherwise high tax-yield/acre location.
A CVS at the other end of the shopping street with off street parking pays what we calculated to be $20,000/acre, meaning the town’s taxpayers make up the difference (pay higher taxes) even more to the advantage of that single property owner for the parking convenience of its customers in an otherwise high tax-yield location.
In this small town, as with any town or city, where residential property owners pay a fraction of what downtown property owners pay, one can easily see how maximizing reasonable productivity of the economic engine of downtown tax-yield is to the direct advantage of all. Squandering tax-yield is to the direct disadvantage of all.
Meanwhile, in downtown New Haven, CT, where a tightly-packed building sitting on .13 acres (our own building) pays what we calculate to be $290,400/acre, the accounting detailed above more than doubles, meaning parking and empty lots in New Haven, as well as anything not tightly-packed, are EXTREMELY expensive for other taxpayers who have to make up the difference for each one of the low to no tax-yield properties in the city’s highest tax-yield areas.