Simon Nixon: Parking strategy on wrong lines

Simon Nixon.

The Hastings District Council has finalised its 2016/17 budget with a proposed rate increase of 3.1 per cent for RA1 the urban area, and 1.5 per cent for the rural area RA2.

The average increase could have been 0.5 per cent higher had council not decided to raid the million-dollar parking reserve instead of using rates to fund the $270,000 of lost revenue resulting from the third free parking trial.

Councillors ignored the 80 per cent of respondents to the council's Annual Plan survey and confirmed by 80 per cent of those taking part in a focus group consultation who stated they wanted paid parking rather than a rates increase. A cynic might connect the reluctance to make a hard decision with the forthcoming local government elections.

In theory at least, the parking experiment has not directly impacted on rates. The first trial from November 2015 to February 2016 resulted in $170,000 of lost revenue paid from the rating surplus, plus a further $109,000 for consultants from the parking reserve. The second trial from March to June 2016 differed from the first by reintroducing pay and display charges in council off-street carparks, suggesting perhaps that people may be willing to pay for their parking. The total cost for the three trials is approaching a massive three-quarters-of-a-million dollars.

The consultants analysis following the first trial revealed whilst Hastings has experienced a significant improvement in business conditions, retail turnover had actually increased by more for those businesses operating outside of regular shopping hours, and also for those retailers offering free parking. Whilst welcomed by shoppers, free parking made no difference to spending.

This should not have been a surprise because councillors were advised that a similar exercise in Rotorua had found no significant impact on either pedestrian counts or retail turnover.

Whilst free parking is very nice, it is debatable whether a third trial was necessary. Additionally free parking has not been matched by a reduction in costs so the lost revenue has had to be met from elsewhere.

Clearly, either parking charges will have to be reintroduced, or rates increased to make up the shortfall, but either way the parking reserve will be depleted.

Whilst the total cost of the free parking trials is significant it is just one of the dream schemes council has come up with in recent years to rescue the CBD, all welcomed around the council table with glowing oratory and much enthusiasm.

Many have simply vanished from sight or have failed to make any difference but not before gobbling up quite a lot money and a great deal of staff time.

More than $4 million has been spent on street improvements and new parks.

In 2010 a $3.7 million scheme was hatched to remove the fountain and reconnect the two halves of Heretaunga St.

A proposal to inject $2m of ratepayer funds to encourage a chartered club merger was thwarted when the idea was rejected by the National Service Club.

The $12.5m Civic Square or Tihei Heretaunga proposal is on hold but has already cost up to a million dollars.

The $5m CBD hotel investment seems unlikely to proceed.

The proposed $10m for strengthening the Opera House is being partly justified by the promised boost to the CBD.

The things that seem to have worked best are those with the least council investment. New office developments, the new Farmers store and the Kiwi Bank call centre have probably done more to boost the CBD than anything the council has done on its own. Sure council was involved in the Kiwi Bank initiative but the money was mostly private, as was the risk.

There seems to be an unwillingness around the council table to understand basic issues. Firstly, the population of Hawke's Bay is expanding at near the slowest rate in the country.

Secondly, if we want Kmart and Mega Mall type developments, and it seems we do, then there will be fewer shoppers and less money for CBD retailing. This situation is likely to be further exacerbated by the imminent relocation of both Briscoes and Rebel Sports.

Thirdly, on-line buying will also continue to eat into traditional retailing with an increasing share going to overseas suppliers. And lastly, the continuing growth of Havelock North must also be dragging shoppers away from Hastings.

Providing free parking will have an on-going cost of between $500,000 and $1 million a year. Rather than throwing more good money at bad ideas perhaps council would be better to start spending these funds on shrinking the CBD by buying up, then demolishing some of the buildings and using the space to increase free parking, whilst also reducing the cost of parking administration.

- Simon Nixon is a Hastings district councillor.

- Views expressed here are the writer's opinion and not the newspaper's. Email: editor@hbtoday.co.nz