Emanuel floats $2 congestion tax, parking lots fight back

Chicago’s Mayor Emanuel this week floated the idea of imposing a $2 congestion fee for commuter parking and parking lot operators are not happy:

Parking industry executives said the mayor’s strategy, which City Hall officials said is intended to reduce traffic gridlock in the central business district and River North and encourage increased public transit ridership and investment, fails to address congestion issues across the Chicago region. They said Emanuel’s plan would create more problems than it would solve.

“We think highlighting parking taxes as a fix to a regional problem is missing the point,” said Marshall Peck, chief executive officer of InterPark, a major owner-operator of parking properties downtown. “The congestion of Chicago is primarily on the highways. Once you get off the highways in the morning, traffic is really not problematic.”

Many commuters and numerous traffic studies, however, would challenge the suggestion that downtown traffic flows well.

InterPark and other members of the Parking Industry Labor Management Committee have posted placards in their facilities showing the current taxes and how the top tax would increase 67 percent, from $3 to $5, under Emanuel’s plan. The companies are also distributing fliers to their customers encouraging city residents to tell their aldermen to vote against the proposed new fee.

There are some interesting ideas floating around here:

1. While a number of cities have looked into congestion taxes, they are still not widespread. In an American context, I presume this is due to their unpopularity.

2. This is just one possible idea among many others the City of Chicago is looking at in order to increase revenue.

3. Having parking lot operators suggest we need more regional solutions to traffic is laughable. The whole system as it is currently set up in most American regions privileges automobile traffic. So they want more people not to drive, potentially reducing their business? Additionally, many regions, such as Chicago, don’t really have metropolitan bodies that can enforce metropolitan solutions to congestion. To solve the problem in the Chicago region, the RTA, CTA, Metra, City of Chicago, State of Illinois, and dozens of municipalities would have to be involved and agreeable.

4. A number of people have argued that parking is way too cheap and this encourages driving. Congestion taxes then do two things: (1) raise revenue (2) reduce traffic by discouraging driving.

5. The parking industry is an interesting one as the long-term prospects for many surface lots is to make money while the company waits for a company to come along and make an expensive offer for the land.

6. Just how much are motorists willing to support the parking lot operators? Would companies and businesspeople really leave the city over a $2 charge?

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