Honolulu Urban Core Parking Master Plan Honolulu, Hi
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TASK 4 – PARKING MARKET & FINANCIAL ANALYSIS HONOLULU URBAN CORE PARKING MASTER PLAN HONOLULU, HI Prepared for: The City & County of Honolulu October 21, 2010 Walker Parking Consultants 606 S. Olive Street, Suite 1100 Los Angeles, CA 90014 Voice: 213.488.4911 Fax: 213.488.4983 www.walkerparking.com October 21, 2010 Mr. Wayne Yoshioka Department of Transportation Services City & County of Honolulu Frank F. Fasi Municipal Building 650 South King Street, Third Floor Honolulu, Hawaii 96813-3017 Re: Task 4 – Parking Market and Financial Analysis Dear Mr. Yoshioka: The following document highlights Walker’s work related to the Honolulu Urban Core Parking Master Plan. We summarize data collected within the study area relating to the parking market in the urban core. We also summarize our review of existing policies, pricing, equipment, structural systems, etc. The financial analysis provides projections that take into account Walker’s recommendations for enhancing revenues and/or reducing expenses. Should you have any immediate questions or concerns we remain available to answer any questions. Thank you in advance for your valued feedback; we look forward to hearing from you soon. Sincerely, WALKER PARKING CONSULTANTS John W. Dorsett, AICP, CPP Ezra D. Kramer, AICP, CPP Senior Vice President Project Manager/Parking Consultant EDK:edk Enclosure: Parking Market and Financial Analysis TASK 4 – PARKING MARKET & “This report was funded in part through grants from FINANCIAL ANALYSIS the Federal Highway Administration and Federal Transit Administration, U.S. Department of Transportation. The views and opinions of the HONOLULU agency expressed herein do not necessarily state URBAN CORE or reflect those of the U. S. Department of Transportation.” PARKING MASTER PLAN HONOLULU, HI Prepared for: THE CITY & COUNTY OF HONOLULU Walker Project No.: 37-8151.00 October 21, 2010 HONOLULU URBAN CORE PARKING MASTER PLAN TASK 4 – PARKING MARKET & FINANCIAL ANALYSIS OCTOBER 21, 2010 37-8151.00 TABLE OF CONTENTS EXECUTIVE SUMMARY II City & County Parking System ......................................................... ii Market Analysis ............................................................................ iii Financial Analysis .......................................................................... vi LIST OF TABLES AND FIGURES INTRODUCTION 1 Federal Grant Work Element ........................................................... 1 Table 1: City and County Parking City and County Scope of Services .................................................. 2 Garages ................................................ 9 Objective of Market and Financial Analysis ...................................... 2 Table 2: City and County Surface Parking Lots ....................................................... 9 Methodology and Report Organization ............................................ 3 Table 3: Flow of Funds – Off-Street City and County Parking System ................................................... 3 Parking ................................................ 12 Parking Market Analysis ............................................................... 3 Table 4: Structural Maintenance Budget ..... 13 Parking Financial Analysis ............................................................ 3 Table 7: Parking Supply – Study Area ........ 17 Table 8: Parking Occupancy – Study Dates of Fieldwork ......................................................................... 3 Area ................................................... 17 Study Area .................................................................................... 4 Table 9: On-street Duration – CITY & COUNTY PARKING SYSTEM 6 Downtown/Chinatown District ................ 18 Table 10: On-street Space Utilization – Organizational Structure ................................................................ 6 Downtown/Chinatown District ................ 19 Parking System Supply ................................................................... 8 Table 11: Duration – Off-street Parking....... 20 Parking Garages ......................................................................... 8 Table 12: Space Utilization – Off-street Parking Lots ................................................................................ 9 Parking ................................................ 21 Table 13: Parking Rates – Study Area ........ 22 On-Street Metered Parking ......................................................... 11 Table 14: Current System Parking Rates – Flow of Funds .............................................................................. 11 Off-street .............................................. 29 General Condition of Parking Resources ......................................... 12 Table 15: City & County Employee Existing Debt Service .................................................................... 13 Parking Rates ....................................... 30 Table 16: City and County of Honolulu Fieldwork .................................................................................... 14 Parking Revenue Summary ..................... 31 Current Conditions – Overall Study Area ........................................ 15 Table 17: Monthly Rate Increase ............... 36 Parking Inventory ....................................................................... 16 Table 18: City and County Facility Parking Occupancy ................................................................... 17 Operators ............................................ 39 Table 19: Existing Management Fees ......... 39 Parking Turnover and Duration .................................................... 18 Table 20: Pro Forma - Baseline .................. 45 Parking Rates ............................................................................ 21 Table 21: Pro Forma - Walker ................... 47 Proposed Changes in the Market ................................................... 22 Development/Redevelopment ..................................................... 22 Figure 1: Study Area .................................. 5 Figure 2: City & County Parking Supply ..... 10 Rapid Transit............................................................................. 24 Figure 3: City & County Rates vs. Market FINANCIAL ANALYSIS 27 Rates ................................................... 35 Parking Rates .............................................................................. 27 Figure 4: Median Monthly Rate in U.S. ...... 35 Historic Rates ............................................................................ 27 Figure 5: Monthly Parking Rate in U.S. ....... 37 Current System Parking Rates ...................................................... 28 Historical Distribution of Revenue by Source ................................... 30 Anticipated Changes to Parking System .......................................... 32 APPENDIX A: SCOPE OF SERVICES Create a Parking Enterprise ........................................................ 32 APPENDIX B: ON-STREET METER DETAIL Modify Parking Rates ................................................................. 34 APPENDIX C: MARKET AREA PARKING Modify Employee Parking Policy ................................................. 37 INVENTORY, OCCUPANCY & RATE Bundle and Renegotiate Operator Agreements ............................. 39 DETAIL Increase Hours of Operation ....................................................... 40 Enhance Technology .................................................................. 41 Automate Revenue Collection ...................................................... 42 Obtain Control of Parking Enforcement Citations ........................... 43 Pro Forma Operating Statement ..................................................... 44 Statement of General Assumptions and Limiting Conditions ............... 49 i HONOLULU URBAN CORE PARKING MASTER PLAN TASK 4 – PARKING MARKET & FINANCIAL ANALYSIS OCTOBER 21, 2010 37-8151.00 EXECUTIVE SUMMARY Walker Parking Consultants (“Walker”) has been engaged by the City and County of Honolulu (“City and County”) to perform a comprehensive parking study (“Project”) for the Honolulu Downtown Urban Core. The Project consists of several studies based on the work element for federal grant 203.79-10. Included in the scope of services for the Project is Task 4 - Parking Market and Financial Analysis, which is the subject of this report. The objective of this task of the Project is specifically to study and document the characteristics of the parking market for the purposes of identifying the upside financial potential of the City and County of Honolulu-owned parking assets. As defined within the federal grant work element, the study area is bounded by River Street to Keeaumoku Street between Beretania Street and Nimitz Highway/Ala Moana Boulevard. The majority of the structured parking facilities owned by the City and County are located in Downtown and Chinatown, within the study area. Walker also provided projections for City and County facilities and on-street meters outside of this study area; these projections are based on the historical data provided by the City and County or parking management companies operating City and County facilities. CITY & COUNTY PARKING SYSTEM Walker worked with City and County staff to identify the City and County parking system assets, how they operate, and how the system operates on the whole. A brief description of the system is provided in the following bullets. The organizational structure of the City