Two hours free parking set to be scrapped in Hamilton CBD

Thursday, 23 November 2023

People look set to be hit with parking fees in central Hamilton as the city council considers switching to a demand responsive model to gather more revenue.

Currently people can park for two hours free of charge and then $6 for each hour after that, which was introduced in October 2017 as a nine-month trial. It was then reviewed and extended several times.

However, councillors will consider the options to introduce fees at next week’s Extraordinary Council meeting on Tuesday and Wednesday as part of the proposed 2024-2034 Long Term Plan budget.

In a statement late Wednesday signalling the possible shift, council said the initial cost of demand responsive parking would be $3 per hour for the first two hours and $6 per hour thereafter.

Almost all shoppers and store owners spoken to by the Waikato Times during an unscientific survey of the CBD wanted two hours free parking to stay.

It would be for parking spaces that have greater than 85% occupancy, and for parks that have less than that occupancy it would be $1 per hour for the first two hours and $6 thereafter.

It would also affect the all day paid parking which see prices increase from $6 to $12 to achieve 85% occupancy rates.

The council estimates that $5.14 million in parking revenue would be generated the first year of the draft 2024-34 Long Term Plan if the changes go ahead.

In the statement, transport unit director Gordon Naidoo said demand-responsive pricing for parking would produce additional revenue, the true benefit of the proposed change would be better management of parking use in the central city.

“The ideal occupancy rate for parking is 85% as it means there are enough people spending time in the area to ensure its vibrancy, but it is not so busy that drivers avoid the area as they can’t find a car park.

“What we have found with the two-hour free parking trial, as well as the all-day parking scheme, is these have led to occupancy rates of more than 85% in many areas, making it difficult for the public to find available parks and causing low parking turnover,” he said.

Mayor Paula Southgate said different options are being considered as part of discussions about revenue, encouraging the public to have their say during the wider Long-Term Plan consultation period in March and April next year.

“Free parking has cost the city up to $800,000 lost revenue annually since the trial began. Of course, free parking is not truly free, it is subsidised by the ratepayer. We're keen to hear from the community on this.”

If the new system is adopted, the two-hour free parking trial in the central city and the central city rate would end on June 30, 2024.