TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Kristin Retherford, Department Director, Community Planning & Development
SUBJECT:
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Downtown paid on-street parking update.
Ward(s): Ward 1 and 2
Councilor(s): Councilors - Tigan and Nishioka
Neighborhood(s): CANDO
Result Area(s): Safe and Healthy Community; Safe, Reliable and Efficient Infrastructure; Strong and Diverse Economy; Welcoming and Livable Community.
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SUMMARY:
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This report provides an update on the implementation and performance of the Downtown Paid On-Street Parking program, which was launched on July 10, 2025. The modifications include the introduction of new pay stations, the extension of 12-hour parking, and the roll-out of an optional parking app, Beep Beep Salem, for those who wish to use it. Additionally, new reduced pricing for downtown employees earning $25 an hour or less has been established to access permit parking in the Chemeketa and Marion parkades. Revenue projections from the parking system are outlined to inform future decisions on downtown enhancements and allow staff to recommend termination of the downtown parking tax and refund of the tax retroactively to July 2025.
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ISSUE:
Information only.
RECOMMENDATION:
recommendation
Information only.
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FACTS AND FINDINGS:
Downtown Paid Parking Launch
On July 10, 2025, the City launched a paid on-street parking system within the Downtown Parking District. Modifications to the Downtown Parking District included new pay stations, removal of three-hour restrictions to allow up to twelve hours of continuous on-street parking with payment, removal of return-to-block restrictions, and the availability of a parking app (Beep Beep Salem). Pay stations and the Beep Beep Salem app operate using a pay-by-plate system, which generates an electronic record that enforcement officers can then verify to ensure that the paid parking time has not expired.
Adjustments in Response to Feedback
To address concerns about low-income employees being burdened by parking fees, a reduced rate for parking permits was established. Employees earning less than $25 an hour (excluding tips) are now eligible to purchase these reduced-rate parking permits in the Chemeketa and Marion parkades. These reduced parking permits are due to sunset June 30, 2026.
Initial Projections and Operating Considerations
Revenue projections for downtown parking show promising results. For the fiscal year 2025-2026, the projected revenue was conservatively set at $1,400,000. Revenue projections for downtown parking were intended to cover the operating costs of the parking district, including maintenance, enforcement, and infrastructure upgrades. Because this is a new program, staff have not included all expenses, and some costs are currently being supported by a draw from the General Fund to cover base costs prior to completion of a deferred maintenance analysis. Safety and Security have been number one priority, and currently the City provides 24-hour monitoring of three parkades at a cost of $410,000 for FY26.
Six-Month Revenue and Utilization Summary
The first quarterly revenue has exceeded expectations. In the first quarter (July to September 2025), revenues totaled $160,741.72 in July, $214,863.15 in August, and $203,766.41 in September. The second quarter (October to December 2025) continued this trend, with revenues of $226,164.54 in October, $179,303.21 in November, and $209,244.66 in December. The total revenue for the first six months reached $1,194,063.69.
Revenue has held steady over the first six months of operation and the average vehicle parking time has been ninety minutes. Parking utilization studies focus on the amount of time a vehicle is parked and how many spaces are utilized in a given time period. Ninety minutes is positive from a utilization perspective as it indicates turnover, i.e., multiple new users rather than long-term users. This means people are coming downtown to dine, shop, or run errands, rather than spaces being occupied by employees or residents, which was a significant issue prior to the conversion to the paid system.
Impact on Parking Garages
Parking permit revenues in the Marion, Chemeketa and Liberty parking garages have also increased since converting to a paid on-street system:
July $36,959
August $44,283
September $47,598
October $49,355
November $51,752
December $55,022
This indicates paid parking is encouraging people to purchase permits, freeing up on-street spaces for customers.
Recommendation to Terminate Downtown Parking Tax
Staff recommends terminating the Downtown parking tax by ordinance, retroactive to July 1, 2025. The first reading of the ordinance is set for tonight’s agenda.
Survey Results and Community Feedback: Improve security, sidewalk cleaning and streetscape maintenance, beautification
Prior to implementing the paid system, staff conducted a survey in December of 2024 to gather input on community priorities and concerns. A follow-up survey was conducted from November 24, 2025 to January 2, 2026. There were 2,309 individual responses, with 82% of respondents identifying as visitors to the Downtown area. Notably, 41% of respondents visited for the restaurants, while 26% were retail shoppers. Approximately 48% of respondents frequented downtown at least once a week, with 55% parking in paid on-street spaces and 30% utilizing the parkades.
Many respondents expressed a preference for parking close to their destinations, while 34% opted for free parking spots in parkades. Safety concerns were frequently cited as reasons for choosing on-street parking over parkades. The survey revealed that 52% of participants had adjusted to the new system, while 48% had not, indicating a need for additional education and information. Users noted frustration with the Beep Beep app, particularly regarding the app fee and the inability to pay for less than an hour of parking. Issues with coin payment functionality were also noted, alongside requests to remove outdoor dining platforms.
The survey asked respondents how they would prioritize enhancements to be funded by the additional revenue. These were ranked in order as follows: 1) enhancing downtown security, 2) sidewalk cleaning, 3) streetscape maintenance, 4) downtown promotions and events, 5) alley sweeping, 6) flower baskets, and 7) banners. This is consistent with feedback from the 2024 survey. Other priorities raised by respondents included the need to mitigate homelessness, increase downtown police patrols, change the app, and improve bike parking facilities.
The two main complaints highlighted in the survey were the inability to park for less than an hour using the credit card/app and the associated app fee. While the app is optional and the fee is a convenience charge, staff want to clarify that coin payments are fully functional. We will also enhance our messaging campaign to ensure the public is aware of all payment options, including coins. Potential solutions were discussed, such as mitigating financial loss due to credit card fees for shorter parking durations or increasing the hourly parking fee to offset the credit card fee.
Safety and security remain paramount concerns, particularly regarding the City’s parkades, and especially for employees working late hours.
Next Steps
First reading of an ordinance to terminate the parking tax and refund parking fees paid retroactively to July 2025 is on tonight’s agenda, and staff intends to propose extend the reduced pricing for lower-income employee parking permits through the end of FY 27.
BACKGROUND:
During the City Council meeting on February 27, 2023, the Council made a significant decision to implement paid on-street parking in the Downtown Parking District. This initiative officially took effect on July 10, 2025. Since its implementation, the city has received a mixed array of feedback. While many individuals have expressed their dissatisfaction with paying for parking, citing challenges with the new meters and the optional app, it is important to note that not all responses have been negative.
In fact, several local businesses have expressed gratitude for the transition to paid parking, reporting that their customers are now finding it easier to locate available parking spaces. This positive feedback highlights the potential benefits of the new system for enhancing customer access to downtown establishments.
To further support the local economy during the holiday season, the City offered free parking on Small Business Saturday and two additional Saturdays in December leading up to the holiday season. While many community members welcomed these free parking days, one long-time business owner reached out to share a different perspective. After thanking the City for the initiative, he expressed concern that employees of local businesses and residents were occupying the on-street parking spots, which made it difficult for customers to find parking. He suggested implementing a parking validation system that would allow businesses to offset parking fees for their customers, thereby improving accessibility and encouraging more holiday shopping.
This feedback underscores the ongoing dialogue between the city and its business community as they work together to enhance the downtown experience for both residents and visitors.
Dana DeKlyen
Assistant Director of Urban Development
Attachments:
Downtown Parking Update