$31,500 for a parking space

Share:

$31,500 for a parking space

$31, 500 for a parking space. According to the local press, in Manteca, near Sacramento, Ca, all you have to do is multiply that by 1,922, and you get the $61 million in
tax money Manteca will give to the developer of Bass Pro Shops to lease parking spaces over 35
years. The largest shopping center to arrive in Manteca cleared its final hurdle before
construction begins with a unanimous City Council vote to approve the development
and help finance it with $61 million in tax rebates.

The council’s vote paves the way for The
Promenade Shops at Orchard Valley, a 72-acre
open-air mall. The same vote ensured that the city would help pay for the
development by leasing 1,922 parking spaces from the shopping center for the
next 35 years. The cost will start at $938,000 in the first year and reach
$2,795,000 by year 35, for a grand total of $61 million. Paid for out of the general fund from sales tax revenues one expects that will come from the shopping center.

 Of course, there is another way to look at it. Divide the
$31,500 by 35 and then by 12 and you get $75 per month per space, or $2.50 a
day. Now if the city, which now “owns” these spaces, could see their way fit to
charge for the parking, all would be right with the world. Just think, if they
charged $2 to park and got a 75% occupancy (Or a turnover equalling 1500 cars a day) That means the city would net about
$1100 a day or $14 million over the life of the lease. I’m sure they can do
better.

Of course it won’t happen. There is a paragraph somewhere in
the agreement that says the parking must remain free to shopping center
patrons. I haven’t read the agreement but any other approach would surprise me.
Shopping centers want free parking. Of
course the parking isn’t free – as we can see, it costs somebody, in this case
the taxpayers, $2.50 per day per space.

 Thanks to Chris Luz for this “heads up”

 JVH

John Van Horn

John Van Horn

Leave a Reply

Your email address will not be published. Required fields are marked *

Only show results from:

Recent Posts

A Note from a Friend

I received this from John Clancy. Now retired, John worked in the technology side of the industry for decades. I don’t think this needs any

Read More »

Look out the Window

If there is any advice I can give it’s concerning the passing scene. “Look out the window.” Rather than listen to CNN or the New

Read More »

Archives

See all Blog Posts

Send message to



    We use cookies to monitor our website and support our customers. View our Privacy Policy