New ordinance would create paid business parking districts in SLO. Here’s how it works
San Luis Obispo’s City Council gave the go-ahead Tuesday to move forward with a new ordinance that will create a paid parking permit program for businesses in high-impacted areas of the city.
The ordinance would allow for districts to be formed — similar to those that now exist in some residential neighborhoods — where general public parking would be restricted on designated streets.
With council approval, businesses in specific commercial areas would vote to establish parking districts and reserve space for workers or customers, with enforcement zones in place.
The proposal came after several businesses on the south end of town began reaching out to the city last year about creating a commercial district in their area.
“In the spring (of 2021), staff began to receive requests from business owners to establish a parking district in a non-residential area located along and near the South Higuera, Tank Farm and Suburban Road area,” a city staff report said. “These businesses were being faced with limited parking on city streets and an overabundance of dumping in the area.”
The staff report noted in regard to the businesses that reached out to the city: “Vehicles, trailers, equipment and other items were beginning to be stored in the area with no regard to the business that were trying to operate in the area and provide parking for customers and employees alike.”
The City Council must approve specific areas where districts can be established. The ordinance would not apply to downtown areas or other zones where paid parking already exists through metered parking.
Parking plan gets unanimous support from SLO council
The plan was approved on a unanimous 5-0 vote.
Councilmember Jan Marx supported the new law but wants to review it after a year.
“In concept, I really support the idea of trying it out and seeing how it works,” Marx said. “I’m OK with the (staff’s) recommendation so that it comes back in a year.”
Councilmember Andy Pease said that she is supportive of a permanent ordinance, based on the language of the draft ordinance, but also agreed to leave the door open to reviewing it after a year.
Councilmember Michelle Shoresman, also supportive, said: “I do worry a bit about the fairness and parity when it comes to the distribution of permits, but I understand that the council has some discretion when these (parking district recommendations) come forward.”
A second reading of the ordinance is planned for Feb. 15 on the council’s consent agenda, meaning it could be passed without discussion unless council members opt to pull it for further review.
How the parking districts would work
Parking districts are created to prevent those who do not live or conduct business in an area from taking up needed spaces, according to a city staff report.
The city currently has 11 residential parking districts that allow occupants of households to apply for permits, such as the Alta Vista parking district near the southern boundary of the Cal Poly campus and the Dana Street district near downtown.
For the business parking ordinance, at least 60% of the responding occupants at the property sites would need to support a district before a staff recommendation is made to the council on a parking district’s formation, reflecting the process for the existing residential program.
Residential parking districts limit permits to two per property, while the new commercial ordinance doesn’t have a set number, according to city staff.
Parking district permits currently cost $20 annually, and residential and commercial costs would be the same moving forward, with a fee structure that could be updated on an annual basis.
“We want business to be able to thrive, and the commercial districts are a way for them to provide parking for their employees and customers,” said Gaven Hussey, the city’s parking program manager. “We don’t want to create an undue hardship or extra expense that could negatively impact their business.”
Jim Dantona, the San Luis Obispo Chamber of Commerce’s president and chief executive officer, wrote to the council that the organization is supportive of creating commercial parking districts, while also creating additional safe parking spaces and areas for the houseless.
“Allowing commercial parking districts should be one tool in a broader response to homelessness as it will only be successful when paired with the creation of additional safe parking spaces/area or other options for people who are houseless,” Dantona said. “Without alternatives, we are concerned that additional parking districts could lead to increasing impacts in other areas of the city.”
Dantona added the Chamber is supportive of fast-tracking additional permanent supportive housing and dedicating resources to long-term homeless solutions in coordination with other cities and the county.
The city currently has a homeless parking area at Railroad Square.
How many permits allowed
Hussey said the overall number of allowed district permit limits could be based on parking spaces available and square-footage sizes of business spaces, or distinctions based on need, but that would be assessed on a case by case district formation basis.
Hussey said the city would take business and property owners requests into consideration in its assessments, while reviewing current on-street parking availability.
“Some businesses require more, and some would require less,” Hussey said. “At that point, we would issue permits to a business directly and if they chose to allow others to participate and use their permits, we would authorize that.”
Alex Fuchs, the city’s parking services supervisor, said at the meeting that the City Council could weigh in on the number of permits for a proposed district.
“That number wouldn’t be set by staff,” Fuchs said. “There would be a recommendation made by staff.”
Tenants would be required to provide proof of occupancy before purchasing permits, such as a lease agreement or utility bill. Businesses would buy the permits and then distribute them to employees or customers on their own accord.
While the ordinance applies to commercial districts, more detailed policy around mixed-use development locations will be brought back before the council in the spring, Hussey said.
Hussey said that parking districts typically take five to eight months to establish.
“Some of the outreach for the South Higuera area has been completed so this should expedite the process, but we cannot move forward until after Feb. 15 (pending final approval of the ordinance),” Hussey said.
This story was originally published January 13, 2022 at 12:08 PM.
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