by Bradley Parsons
Staff Writer
Privately–owned parking garages operating within the City’s sports complex could cost the City $800,000 a year by taking customers from existing lots, according to the complex’s manager.
Bob Downey, the general manager for City-hired management firm, SMG, based his estimate on a local group’s proposal, approved Tuesday night by the City Council, to build two parking garages in the vicinity of the complex. The 1,480 private spaces would compete with the City’s own 6,500 space supply, he said.
The City spends about $7.5 million annually to subsidize SMG–managed facilities, which include the Veterans Memorial Arena, Baseball Grounds of Jacksonville, Alltel Stadium and Equestrian Center. The projected dip in parking revenue could push that subsidy to $8.3 million, said Downey.
“The City knows that if those dollars are diverted, then there will be less dollars to pay for operating these facilities,” said Downey. “At some point the City would have to increase the subsidy.”
Downey’s numbers are disputed by the garage developers. Metropolitan Parking Solutions cited City and private studies to the Council Auditor’s Office in claiming the new garages would actually improve SMG’s bottom line. Projected increases in sports complex events and better, safer, available parking would draw more visitors to downtown’s east end, according to MPS.
Comments accompanying the MPS projections questioned SMG’s numbers. MPS told the auditors that SMG lowballed attendance for the Jacksonville Suns by 43 percent, and understated Greater Jacksonville Agricultural Fair attendance by 10,000 cars a day, or $500,000 in revenue over 10 days. According to MPS, their parking garages, which would bring 1,000 spaces to the sports complex and 480 to the adjacent arena, would return a net annual gain to SMG of about $352,000.
However, MPS’ own projections were questioned by council auditors. Assistant Auditor Jim Meyer noted the group lists 6,400 parking spaces as a target figure for arena events. Assuming three people to a car, as MPS does in its projections, that figure would bring 19,200 visitors to the arena, 3,200 past capacity.
If the garages do not perform as projected, the City will cushion the financial shortfall said Meyer, noting that the development agreement calls for City loans to cover MPS losses.
“If they (MPS) don’t have the numbers, it will result in a bigger development loan,” said Meyer. “If they (the numbers) do come in, its going to take away from SMG, and the City subsidy gets bigger.”
The Auditor’s Office initially opposed the agreement with MPS, but came to support it after the developer agreed to buy land to build three parking garages. The third garage will bring 1,375 spaces to the new county courthouse.
Jacksonville Economic Development Commission executive director Kirk Wendland said both parties’ projections were likely self–serving. The financial effect of the new garages had been considered, he said, but the JEDC’s primary goal was to supply parking in compliance with downtown’s master plan.
“I don’t know if one set of numbers is optimistic and the other is pessimistic and the reality falls somewhere in between,” said Wendland. “But regardless of who owns the garages, new inventory is going to effect old inventory.
“But whether the garages will be a benefit or a detriment to existing lots was not the overriding concern. The folks who make decisions told us they wanted two parking garages there, and we negotiated a deal based on that.”