Troy's Latest Parking Study is Released

Spending $9.569 million on a structure to gain a net of 97 parking spaces seems unlikely to happen

This publication was recently given a copy of a detailed parking study completed by the Walker Consultants firm that provided a conceptual design and financial analysis of a potential parking garage located off of North Cherry Street in Downtown Troy. The analysis updates a 2019 parking study and takes into account increased residential development, rising construction and operating costs, considerations for implementing a new paid parking program and an updated conceptual design for a new parking structure with ground-floor commercial space.

What Would a Potential Garage Look Like?

The proposed parking structure is slated for construction at the intersection of North Cherry and West Water Streets. This freestanding facility would provide 213 parking spaces across three levels, including the ground floor. The structure would displace 116 parking spaces (both public and private) and would net 97 new parking spaces downtown. A conceptual design of the garage from the report is seen below.

Interestingly, the design incorporates 4,867 square feet of integrated commercial space on the ground level, which alone adds another $1.46 million to the project. The executive summary of the report puts the final price tag over $9 million; a summary of the project costs are below.

Current Parking Situation

Troy's downtown study area currently offers 464 parking spaces, split between 255 on-street and 209 off-street spaces. Recent occupancy data shows that on-street parking is 58% utilized, while off-street parking reaches 78% utilization. Overall, the study area experiences a 67% parking utilization rate, indicating some capacity but also suggesting potential for future strain.

Future Demand Projections

The study identified several factors that will increase parking demand in the near future. Three buildings currently under construction or in final planning stages are expected to generate demand for an additional 106 parking spaces by 2026. Furthermore, the city has identified 115,006 square feet of vacant upper-floor space in the study area that could potentially be converted into residential units. If fully developed, this could create demand for up to 151 more parking spaces.

When combining current conditions with projected future developments, the study reveals a potential deficit of 46 parking spaces in the downtown area. The proposed 213-space parking structure would not only address this deficit but provide a net gain of 97 spaces, effectively absorbing most of the projected future demand.

Financial Considerations

The study provides a detailed financial analysis, projecting revenues and expenses for the first five years of operation (2027-2031). The analysis assumes a gradual increase in parking utilization, starting at 60% in 2027 and reaching 100% by 2031. Revenue projections include income from paid on-street parking, daily and monthly garage parking, and special event parking. On-street parking would cost $1, daily costs for garage would be $2 and special event parking would be $5. Monthly leases would be $40 per month, though county employees could park at the garage at no cost.

Despite these revenue streams, the financial model indicates that the parking structure will operate at a deficit for the first several years. By 2029, the structure is projected to generate a positive Net Operating Income of $52,000. However, when accounting for debt service and a maintenance fund for future capital expenses, the project shows a significant annual shortfall, ranging from $542,000 in 2027 to $689,000 in 2031.

Cost Projections

Construction costs have increased substantially since the 2020 financial analysis. The current estimate ranges from $30,000 to $34,000 per parking space for construction, with additional soft costs estimated at 20% of construction costs. The integrated commercial space is projected to cost between $250 and $350 per square foot. In total, excluding land acquisition, the project is estimated to cost between $8.758 million and $10.380 million, or $41,000 to $49,000 per parking space.

Implementation Considerations

The study recommends implementing paid on-street parking using multi-space meters and charging for daily, monthly, and special event parking in the garage, at the rates outlined above. The study also suggests that parking enforcement revenues be pledged to cover garage expenses. To keep pace with inflation and increasing operational costs, the plan proposes increasing parking rates by 10% every third year.

Where Do We Go From Here?

Reading the report, there are a few things that came to mind, as our community continues to think about our downtown, parking and pedestrians in a way that is benefit to downtown merchants and the community as a whole.

First off, it was interesting to see that the garage concept integrated commercial space on the first floor at a cost of over $1.46 million. While arguments could be made that more commercial space is needed along West Water Street, there would need to be a deeper discussion on who would own and who would make the decision on renting those commercial spaces out. Frankly, the idea of the city being a landlord for commercial property is fraught with pitfalls; how would decisions be made on lease terms and conditions, and who would make the decision on what businesses would be welcome there?

Secondly, and most importantly, the study confirmed something that most downtown observers already know. The parking issues downtown don’t come from a lack of parking; it comes from a lack of parking that is safe for pedestrians. People are demanding parking close to their destination not because they are lazy, but rather navigating downtown by foot isn’t the easiest thing to do.

Putting a parking garage on North Cherry Street would be a welcome amenity for the County and their employees, but it truly does nothing for downtown merchants and their shoppers when the Cherry Street crosswalk was removed and crossing the West Main Street leg of the Public Square still leaves a lot to be desired when it comes to pedestrian safety.

While the recent announcements of enhancements to the Public Square give some sense of hope, there is still an open question as to how well designed traffic islands will be for pedestrians (will there be rapid flashing beacons?) and how many lanes of traffic (especially on West Main Street) will come into the roundabout.

Pedestrians First!

When we look at all the recent studies that have been recently completed in our downtown area, there is one piece of the puzzle that is always missing - pedestrians. The consultants that are hired can come in and talk about traffic counts, parking demand, turn radii, stacking, travel times and all sorts of esoteric statistics that don’t get to the root of the situation at hand — pedestrians.

Personally, most of the “travelling” I do downtown is by foot. I have no problem walking two or three blocks to my destination, but I know I am more the exception to the rule. Most people won’t cross at the Public Square, and it’s not the easiest place to walk around. It would be nice to see consultants come in and talk about walking downtown for once and talk about improving that experience.

In the end, if you don’t have a safe and attractive place to walk, a parking garage will not make much of a difference.

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