ABSTRACT
Offering transit passes to commuters can significantly reduce parking demand. The logic behind off-street parking requirements is simple: development increases the demand for parking, so cities require enough off-street spaces to satisfy this new demand. Providing Eco Passes in lieu of required parking converts an upfront capital cost for parking spaces into an annual subsidy for transit, and many developers may want to make this trade. The transit-in-lieu-of-parking arrangement can be extended to all manner of land uses. Parking cash out converts a parking subsidy into a cash grant commuters can use for any mode of travel. California law requires many employers who offer free parking to offer commuters the cash-out option as well. Cities can offer bigger reductions in required parking in transit-oriented developments because Eco Passes will reduce parking demand more at sites with better transit service. The capital cost of parking is a heavy fixed burden for a new building that has yet to be leased.
