Raleigh extends 2‑hour free parking pilot after DRA figures show millions in downtown spending
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Summary
Council extended the downtown 2‑hour free parking pilot to allow further budget analysis after Downtown Raleigh Alliance presented intercept survey results estimating $2M–$3.8M in incremental downtown spending, while staff warned of about $500,000 in parking revenue loss and deferred maintenance impacts.
Raleigh City Council voted to extend the downtown 2‑hour free parking pilot through the end of the current fiscal year to give staff time to evaluate fiscal trade-offs and potential partnerships.
Caitlin Parker, the city parking manager, told council the pilot began Nov. 15, 2024, covers six city-owned garages from 7 a.m. to 7 p.m. on weekdays and limits one free visit per vehicle per day. Staff reported the pilot has produced about a $500,000 revenue loss for the parking enterprise so far and contributed to deferred maintenance and reduced capacity for janitorial and power-washing services.
Bill King of the Downtown Raleigh Alliance (DRA) presented intercept and storefront surveys used to estimate the program’s economic impact. DRA’s intercept survey (258 responses) found 16% of transient parkers said the free parking was the primary reason for their trip and another 15% said it influenced their visit. DRA estimated incremental downtown spending attributable to the pilot between $2 million and $3.8 million and an average spend per visitor of about $27.
Council members pressed staff on whether the estimated spending offset the parking revenue loss through increased sales and property tax. Staff said the city could not yet calculate actual tax revenue offsets but that the DRA data indicate increased transactions and business-reported sales gains; staff committed to producing a break-even and funding analysis for the budget cycle.
In extending the pilot, council also asked staff and DRA to explore public-private partnership options and whether adjustments to deck rates could help close the gap between enterprise losses and economic benefits. The extension gives staff time to return during budget deliberations with specific scenarios for how to sustain the pilot or modify terms.
What happens next: Parking and finance staff will present a detailed fiscal analysis and options for sustaining or permanently adopting a form of the pilot during the city’s budget process; DRA will continue to refine intercept data and storefront feedback.