The San Jose City Council has approved changes to city parking rates, raising fees for garages and special events, but opting to delay proposed increases for downtown parking meters and extended evening meter hours. The decision, reached after three attempts to find a compromise, aims to balance the city's budget needs with concerns from the downtown business community.
Beginning in October, the hourly parking rate at city garages will increase from $4 to $5, applicable after the first free 90 minutes. For special events, garage rates will range from $15 to $35. The approved plan also expands eligibility for discounted parking for downtown employees and maintains 90 minutes of free parking at the Convention Center garage.
City Council members voted 7-3 to pass the final proposal, with Councilmembers Peter Ortiz, Bien Doan, and George Casey voting against the changes. Officials have also directed city staff to conduct further analysis of parking revenue, utilization, and infrastructure needs.
District 3 Councilmember Anthony Tordillos, who represents downtown and introduced several changes to the initial parking plan, noted that the approved proposal specifically avoids extending downtown meter hours from 6 p.m. to 9 p.m. and an additional $1 increase for downtown parking meters. These adjustments were made in response to concerns from downtown stakeholders who aimed to prevent an undue burden on the local economy.
An earlier parking rate proposal in June had generated significant opposition from downtown businesses, who cautioned that higher parking costs could negatively impact the local economy. Cache Bouren, a downtown business owner operating businesses including Haberdasher, expressed frustrations, indicating that the initial proposal was a "last straw" following years of issues with city permitting and what he described as a lack of support for small businesses. Bouren stated plans to fulfill existing leases but intends to invest in other states, citing lower permitting and startup costs, with an eventual goal of handing one of his businesses to long-term employees.
The parking rate adjustments are part of San Jose's broader strategy to address an ongoing budget deficit, which is projected to exceed $26 million this year. The original plan proposed by city staff had sought to mitigate financial impact on businesses by phasing in rate increases over five years and was expected to generate an additional $4 million in annual revenue to the city’s parking fund by 2030. However, the scaled-down approach approved by the Council does not include phased-in rates, and the expected revenue generation is currently unclear.
Tamiko Rast, vice chair of San Jose’s Downtown Parking Board and president of the Japantown Business Association, commented that the need for three attempts to approve the rates highlighted the city's need for more community outreach. Rast stated that the "ending proposal struck a fair balance." However, she also emphasized the need for more work to understand how parking fund monies have been spent and why there are not sufficient funds to repair aging infrastructure. Rast has advocated for improved oversight of the city’s parking fund, which is intended for the repair and maintenance of parking infrastructure. She pointed out that the city has underinvested in upkeep for years, contributing to declining conditions at many city-run garages, and suggested that better management of the fund, rather than solely relying on rate increases, is necessary to address these long-term issues, which are now compounded by the budget crisis.
