ABSTRACT
The case-by-case approach was complicated, time consuming, and expensive to administer, requiring a land-value appraisal to estimate the cost of public parking near each project. The parking impact fee imposed by a parking requirement depends on the number of parking spaces required and the in-lieu fee per space. Higher parking requirements produce higher parking impact fees. In-lieu parking fees give developers a new option—pay a fee rather than provide the parking required by zoning. The city then uses the fee revenue to provide public parking spaces. The in-lieu fees also serve another important purpose: they reveal the high cost of the parking requirements themselves. The developer's decision to provide the required parking or pay the in-lieu fee depends on the costs and benefits in each case. The parking requirements impose the burden on development, while the in-lieu fees merely quantify the cost.
