VPP Projects Not Involving Tolls
Category: Parking Pricing

MINNESOTA: Parking Pricing Demonstration in the Twin Cities Area

The Minnesota Department of Transportation (MnDOT) has studied parking pricing in the Twin Cities and a successful parking cash-out program (where employers provide their employees the option of cash in lieu of a parking benefit) has been demonstrated. The City of Minneapolis is currently undertaking a major downtown transportation study where parking will be an important consideration. This project will entail a substantial amount of outreach by the Humphrey Institute, which has an excellent track record and is highly experienced in involving the public in transportation pricing issues. The 18-month outreach program will include efforts tailored specifically to the media, local governments, and community leaders and will create a high level parking pricing task force. Demonstration sites will be selected and parking pricing will be implemented at these sites. A comprehensive evaluation will be performed.

A variety of pricing innovations will be explored, as will integration with the I-394 MnPASS project and the University of Minnesota Metro Transit smart-card system. This has the potential to lead to greater political support for parking pricing. Pilot projects will showcase parking pricing innovations which in turn could be applied to many other parking facilities and on-street parking spaces.

Feasibility Funds Awarded

September 2006

January - March 2011 Update

Three of four test modules are now complete and results are currently being analyzed. A plan for executing the final test module is being developed and will be run during the late summer and early fall periods.

The recruitment goal for each module has been 200-250 participants although the test modules have not been able to generate that level of participation. The four modules tested include: 1. PayGo - Under this module participants are charged a fee for using transit or parking at the applicable equivalent average-daily-charge rate, except that in any given month, costs for participants are not be allowed to exceed the monthly cost of the original parking contract, nor will it be allowed to fall below one-half of that cost. 2. Buying flexibility - This module is marketed toward current parking contract customers who are considering transit. These customers are offered a deeply discounted transit pass bundled into their parking contract. 3. Disincentive removal - In this module, participants are given a free bus pass with their monthly parking contract. 4. Marginal Rebate - This module provides participants with a free transit pass and refunds those participants the difference of the marginal parking cost and transit fare on days when transit is used.

Control groups are recruited as needed for validation of each module.

For More Information Contact

Kenneth R. Buckeye
Program Manager Value Pricing
Phone: (651) 366-3737
E-mail: kenneth.buckeye@dot.state.mn.us

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