Peekskill keeps public hearing open on payment‑in‑lieu parking after heated debate over fees and equity

The Common Council on Oct. 14 continued deliberations on Local Law 10 of 2025, which would create a payment‑in‑lieu‑of‑parking (PIL) program, implement per‑space parking and maintenance fees and establish a downtown parking district. Planning staff described changes made after Planning Commission comment intended to simplify on‑site limits and provide waiver/adjustment mechanisms for purchased permits.

Developers and proponents described the policy as a tool to unlock downtown redevelopment constrained by parking requirements. "I think it could be transformative and open up a tremendous amount of potential in the downtown," said Joseph Thompson, who urged sensitive drafting to ensure projects remain financially feasible. One applicant told the council they would consider purchasing city parking to enable other projects.

Residents, downtown business owners and some builders opposed current fee levels and raised operational concerns. Several speakers cited comparative per‑space fees in other municipalities (comments cited averages around $18,000 and concerns that $30,000 per space would be excessive) and worried that selling or dedicating municipal parking to developers would reduce capacity for long‑standing downtown residents and customers. One commenter urged a stronger parking management plan and shared‑parking policies to avoid neighborhood spillover.

Councilors and staff agreed a comprehensive downtown parking management plan is part of the broader program and that any in‑lieu proceeds should be used to improve shared parking infrastructure (including the James Street garage). After extended public comment, the council voted to keep the public hearing open and adjourn the matter to the next meeting on Oct. 27 so staff can incorporate feedback and return with potential text revisions.