CUED

Parking Demand Study for Retail Transit Center
in the Howard Area in Chicago, Illinois

Methodology: Demand was established through a variety of techniques which included (a) an extensive CTA riders survey (of 380 riders) conducted at three park-n-ride facilities at and around the HP station, (b) a survey of major business establishments in the Howard street area, and a literature review for estimating parking supply guidelines for the park-n-ride lot as well as for the retail parking garage. The latter was established on the basis of the size and land use components of the proposed development.

Findings:

Expansion of the 300 space park-n-ride CTA lot to 450-500 spaces is warranted: This finding is based on results obtained from the three surveys. The Howard Station survey shows that about 50% of the riders surveyed indicated the presence of a parking shortage in the area. Furthermore, 20% of the respondents who do not drive mention parking availability and costs as the primary reason for using other means of transport. Of those who did drive, only half use the park-n-ride lot and 60% indicated that they perceive a parking shortage. The merchant survey, while indicating that adequate parking existed for employees, elicited some concerns regarding parking for patrons and other users. The Wisdom Bridge Theater management, for example, is contemplating using its own parking facility (45 spaces) in the day time for paid commuter parking. A comparison with other park-n-ride facilities in the country revealed that the present demand for boarding passengers at the Howard Street Station (about 5,500 walk-in round trips per weekday excluding transfers) justifies a larger park-n-ride lot. The sample of nationwide rail transit stations shows that, on average, one off-street parking space is typically provided for every seven boarding passengers (or trips) per weekday. At the HP station this ratio is 18.5, clearly below typical standards. The 150-200 space addition was determined on the basis of five potential markets of present transit users at HP and two nearby transit terminals at Linden and Skokie as well as residents and businesses in the area. It was determined for two scenarios on the basis of existing and desirable ratio of daily riders to off-street parking facilities.

Paid short term parking is a viable funding alternative: It was clear from the surveys that riders who would consider the use of a park-n-ride facility would do so only on a short term basis (that is, daily or monthly). For example, 12.3% would be willing to rent on a daily basis, 12.8% on a monthly basis, but only 2% for an extended period. The merchant survey indicated that 4 of the 5 businesses surveyed would be interested in securing guaranteed spaces in a future lot. This is based on evidence that most of their patrons also patronize other businesses in the area, and that the proposed retail transit mall will generate additional business in the future.

A parking fee of $2 per day is recommended: The riders survey at HP station indicated that a substantial majority (over 70%) of the respondents with a choice (i.e. having a vehicle available for their use) were willing to pay up to $2 for parking on a daily basis. Interestingly, those who perceived the presence of a parking shortage were willing to pay even more. The overall average rate computed for those respondents indicating a choice was $2.20 per day. The business survey gave varying results. The Cuneo Building management is willing to pay $25/space/month, compared with $60 for the Currency Exchange and $50 for Pivot Point Hair Styling. The Wisdom Bridge Theater manager estimates his patrons would be willing to pay $2-$4 for parking per performance if spaces in the park-n-ride facility were guaranteed.

It is important to note that the recommended figure represents a lower limit on acceptable parking fees, considering the comparative cost of travel and parking to the CBD area, the park-n-ride option is far less costly. For example, consider the case in which a $6.00/day downtown parking fee is charged (a very conservative figure); $.025/mile vehicle operating cost; $2.5/day transit fare and a 20 mile round-trip (6 miles for park-n-riders). With these assumptions in mind it would take a $7.00 parking fee/day to equalize the trip cost (not counting other factors as driving stress, safety and so forth). Because of the large cost differential, it does not appear that demand elasticity (i.e. change in demand or mode in response to travel cost) is likely to be sensitive to parking fees of $2-$3 per day. A limited market exists for the purchase of parking spaces: The riders' survey at HP indicated that a very small percentage had an interest in committing to the purchase of a parking space (2% of the sample). When only those driving to the station or having access to a vehicle are considered, the percentage drops to 1%. This represents approximately 27 daily riders at the station. A number of local businesses interviewed also expressed interest in purchasing spaces, although the exact number could not be confirmed from the survey. So, while the demand appears to be low and uncertain, it is believed that it justifies setting up a small scale experimental program in which 10-15 spaces would be set aside in the expanded park-n-ride facility for long-term use.

Day care users surveyed in HP: Day care users were identified in the riders survey. These constituted 7.1% of the overall sample. They were overwhelmingly commuters (85%), were more likely to drive (twice as much as the overall sample), and were more willing to rent parking spaces on a short-term basis (33% vs. 20% for the overall sample). However, none the respondents who were day care users indicated an interest in the purchase of parking spaces. The effect of a proposed day care center has been incorporated in the sizing of the retail parking facility. Because of lack of data, any substantive conclusions regarding this market would be purely speculative.

Organization of Report: This report is organized as follows. Chapter II provides background information on the project and study area, such as the size, use and unique features of the proposed development. Information is also given on area demographics compiled from census data. Chapter III reviews the methodology used to conduct the study, including the design, testing and administration of the survey, business survey development, day care feasibility study, and a review of parking guidelines in the literature. Chapter IV presents the results of the demand study pertaining to the park-n-ride facility as well as the retail and residential component of the development. Appendix A contains the complete set of responses for each site, for all sites combined, and for the subset of day care users. Appendix B contains the listing of the computer program developed to analyze the survey data.

This website is maintained by Cedric Williams, Manager System Services,
UIC-Center for Urban Economic Development