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��'- ,zo probably shouldn't. Suburban strip malls sometimes have greater supplies of parking than is needed and often do not need to charge for parking either. However, do we want Downtown Redwood City to be a struggling downtown or a strip mall? Obviously, the answer is "no." Downtown is already a major employment center and the City and its redevelopment agency have made several wise investments that will solidify it as a strong shopping, dining, and entertainment destination, too. We will have a lively downtown, and we will have to deal with parking in a creative way. But that's okay—this is a good problem to have. Therefore, the main reason to charge for parking is to ration a limited supply of a coveted product. By charging for parking, people will be encouraged to move from spaces as quickly as possible in order to pay as little as possible, and spaces are made available to others. Thus, charging for parking makes fewer spaces feel like more. Without parking management in general, and fees in particular, employees and merchants tend to pazk in the best spaces a11 day, depriving paying customers of the most convenient spots. Obviously, merchants and employees "shouldn't" park in prime spaces, but they do. The secondary reason to charge for parking is that it generates revenue. This shouldn't be the main reason to do it, although for some cities it is. The revenue generated is necessary to operate the pazking system and to pay for new parking facilities. The "rationing" powers of pricing are a far more powerful incentive to charge for parking in lively downtowns. Market-Rate Pricing The ideal occupancy rate for a block of downtown parking is considered to be 85%, which means that 1 out of every 8 spaces is always available, even on the main drag, and even during the busiest hours. This way, a precious public resource is not wasted, while at the same time there is always a space or to for those who really want them. This is achieved not through time limits, but by a strategic pricing structure. The most desirable spaces (on-street spaces in the core) aze the most expansive, while side streets are less, and off-street parking is even less. The least desirable and least used spaces may even be free. This system lures bazgain hunters and employees out of prime azeas, freeing up a few prime spaces for customers who really want them and are willing to pay for them. If a block or lot has an average occupancy of greater than 85°10 then the parking is congested and the price must go up. If a block or lot has an average occupancy of less than 85% then the pazking is underused and the price must go down, or go away altogether. Professor ponald Shoup, the most vocal advocate for market-rate prices, once explained their effectiveness using the "Goldilocks Principle:" The price is too high if many spaces are vacant, and too low if no spaces are vacant. Children learn that porridge shouldn't be too hot or too cold, and that beds shouldn't be too soft or too firm. Likewise, the price of curb parking shouldn't be too high or too low. When about 15 percent of curb spaces are vacant, the price is just right. What alternative price could be better? page 14