Peekskill advances downtown payment-in-lieu parking plan after public hearing

After a public hearing on Nov. 24, the Peekskill Common Council advanced zoning text amendments to establish a downtown payment-in-lieu-of-parking (PILOP) program and to implement per-space parking and parking-maintenance fees. Staff said the program is intended to allow infill housing projects that cannot provide on-site parking to pay the city for reserved garage spaces, and the council authorized filing the local law with the Secretary of State.

The planning director and staff said they had reduced fees for one- and two-unit conversions and that developers could opt to provide on-site parking or seek relief through the Zoning Board of Appeals. Staff estimated the program would commit approximately $255,000 in PILOP revenue in 2025 for about 17 spaces (the first anticipated use cited by staff). "We were getting funds where today we don't get funds," a city official said, describing the program as converting an effective waiver into a revenue source for garage improvements.

Public commenters raised concerns about limited winter parking, the total number of spaces the city would be selling, and whether garages could handle the weight of electric vehicles. One resident called the proposal "short-sighted" and said the program could be a giveaway to developers; staff replied that the city retains control over the number of spaces sold and that garage improvements are planned as part of the program.