For some time we have heard that the presence of Parking Authority garages-publicly owned and exempt from taxation-act as a check on the privately-owned garages in the City. The Authority garages (and lots) had lower rates and kept parking affordable for people wanting to come Downtown.
That’s why a consultant for the Downtown Partnership urged that if the Authority owned garages and lots are sold or leased to a private operator that rate controls become a condition of the deal so as to keep Downtown competitive. Citing his familiarity with the lease deal in Chicago (the deal from which Pittsburgh has taken inspiration), he feels that losing public-owned garages and lots would be a detriment to Downtown commerce.
The Mayor’s chief of staff responded that since "the city authority controls only about 25 percent of all parking Downtown" that moving the facilities into private hands will not be a big deal.
But it could have an impact, just not in the direction the Downtown crowd is thinking. A private interest might offer better service and better maintained garages, and possibly could compete with existing garages on parking rates. Sure, they would be keen to the bottom line, an action the consultant may not like, but in so doing the scarce resource of parking is allocated efficiently. The more controls built into the lease the less attractive the up-front offer the City is betting on will be.
