Parking Deck Unlikely to Turn a Profit
In an article in the Kearny Journal, Mayor Raymond McDonough is quoted as saying that "Patrons of the parking garage will pay a 15 percent tax that ... will bring new dollars to the town. The (Hudson County) Improvement Authority will use a portion to pay off bonds,and the rest, he said, will go to Harrison."
The above statement isn't exactly true. It is true that the Town of Harrison charges a 15% percent tax on commuter parking. The current surface parking lots collect and turn that over to the town. The town collected over $460,000 last year in its 15% parking fee tax. The Mayor wants us to believe that the parking deck will be completely filled with new commuters and thus bring a windfall to Harrison. That is far from the reality. Current surface parking is more than sufficient to accomodate commuter parking during the workweek. There will be no new dollars being generated by the parking garage during non event days. The parking garage will actually cause the Town of Harrison to lose revenue because instead of the Town getting the direct benefit of the tax, the Hudson County Improvement Authority will use the tax to pay its operating expenses for running the garage and the Bond interest and principal before the town sees a dime. Thus, the parking garage is a detriment to the town not a benefit.
It is true that during Red Bull games revenue will be generated by the need for additional parking. But the limited number of games that the Red Bulls play will not generate sufficient parking tax revenue to pay off the interest and principal on the bonds floated to build the garage. Not to mention the costs of additional police officers for security and traffic control.
This issue was brought up at prior council meeting. Mayor McDonough knows full well that the Town of Harrison will likely not see a dime turned over by the County of Hudson for a long time (If I remember correctly20+ 30 years. See Part III of December 14, 2007 Mayor & Council Meeting at approximately 13 minutes in.)
Mayor McDonough is trying to put a positive spin on Harrison's parking garage. I guess that is his job. However, he knows full well that the parking garage will not turn a profit for a very long time. I wish he would just say the truth. The parking garage was built with public money because the Mayor and the Redevelopment Agency entered into a contract with the Red Bulls (actually its predecessor the MetroStars) that it would provide adequate parking for the Red Bulls stadium. The redevelopers should have been asked to contribute to the cost of the parking garage but Mayor McDonough either did not bother to ask or was unable to negotiate that for the benefit of the town.
The reality is that the parking garage will for a very long time cause the town to lose over $460,000 per year in revenue it sorely needs. Mayor McDonough should simply admit that the parking garage was built to accomodate the redevelopers and not the taxpayers.
What do you think? Leave your comment below.
The above statement isn't exactly true. It is true that the Town of Harrison charges a 15% percent tax on commuter parking. The current surface parking lots collect and turn that over to the town. The town collected over $460,000 last year in its 15% parking fee tax. The Mayor wants us to believe that the parking deck will be completely filled with new commuters and thus bring a windfall to Harrison. That is far from the reality. Current surface parking is more than sufficient to accomodate commuter parking during the workweek. There will be no new dollars being generated by the parking garage during non event days. The parking garage will actually cause the Town of Harrison to lose revenue because instead of the Town getting the direct benefit of the tax, the Hudson County Improvement Authority will use the tax to pay its operating expenses for running the garage and the Bond interest and principal before the town sees a dime. Thus, the parking garage is a detriment to the town not a benefit.
It is true that during Red Bull games revenue will be generated by the need for additional parking. But the limited number of games that the Red Bulls play will not generate sufficient parking tax revenue to pay off the interest and principal on the bonds floated to build the garage. Not to mention the costs of additional police officers for security and traffic control.
This issue was brought up at prior council meeting. Mayor McDonough knows full well that the Town of Harrison will likely not see a dime turned over by the County of Hudson for a long time (If I remember correctly
Mayor McDonough is trying to put a positive spin on Harrison's parking garage. I guess that is his job. However, he knows full well that the parking garage will not turn a profit for a very long time. I wish he would just say the truth. The parking garage was built with public money because the Mayor and the Redevelopment Agency entered into a contract with the Red Bulls (actually its predecessor the MetroStars) that it would provide adequate parking for the Red Bulls stadium. The redevelopers should have been asked to contribute to the cost of the parking garage but Mayor McDonough either did not bother to ask or was unable to negotiate that for the benefit of the town.
The reality is that the parking garage will for a very long time cause the town to lose over $460,000 per year in revenue it sorely needs. Mayor McDonough should simply admit that the parking garage was built to accomodate the redevelopers and not the taxpayers.
What do you think? Leave your comment below.
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