As downtown Detroit gets closer to experiencing a true revival, the inclusion - or exclusion - of surface parking to accommodate new businesses must be considered as a policy issue. While large-scale projects such as the Campus Martius office and retail development will include abundant parking within the developments, typically smaller scale retail establishments must rely on available parking in the area. There seems to be two opposing viewpoints impacting discussion about parking in urban areas. On the one hand, now is the time to implement all of the progressive concepts that rebuild downtown areas in a manner which makes them pedestrian friendly, attractive, safe and tight. On the other hand, adequate parking is considered a crucial element to opening a successful business, especially in an untested market such as Detroit.

Relative to other cities, downtown Detroit has an overabundance of surface lot parking, and an underabundance of retail establishments. This makes many parts of downtown feel stark, fragmented and uninviting to pedestrians. If the city’s future development projects are to occur in a manner that is thoughtful of good urban design principals, the lure of parking lots must be confronted as a policy issue. There are many explanations for the multitude of parking lots operating in the central business district, and like most things, the core issue is economics. Parking is a big business, which functions because of the many incentives driving its use.

1. High Profit Margin - Parking generates a higher profit margin than many commercial businesses. There is low to no startup and maintenance costs required, therefore revenues are almost entirely profit.
2. Low Property Taxes - The assessed value of parking lots is based on vacant land rather than a functioning business, which it is. Therefore, the lots pay inconsequential amounts in property taxes.
3. Steady Demand - Detroiters seem to take advantage of all the parking choices available and provide a steady supply of hourly and daily parking fees throughout the central business district.
4. Simple Business - Unlike most businesses, operating a parking lot is very easy work. There is no need for a business plan, image is not important and the general public accepts the reality of parking in unsightly lots.

These incentives are real, but thoughtful policy initiatives can turn the table and create stronger incentives for commercial uses, thereby pushing the cars off these lots, making room for new construction.

1. Reassess property value based on projected revenues rather than vacant land.
2. Amend zoning ordinance to loosen requirements for parking for commercial uses in the downtown area.
3. Enforce landscaping guidelines. This may prevent many of the more marginal establishments from staying in business and the ones who do chose to remain in operation, will be required to beautify and maintain there property, making it less visually offensive.