Crediting Off-Site Parking

Off-site parking credits allow a developer to satisfy minimum parking requirements via access to parking located off, but within a designated maximum distance from, the development site.

This policy is based on the recognition that new parking demand can be accommodated by existing parking supplies, and that those supplies do not have to be on the same site as the development in order to provide access to its land uses. Such credits are particularly useful for infill and redevelopment projects, where limited site dimensions and geometry prevent cost-effective parking supplies sufficient to meet requirements. In many locations, off-site and/or shared parking agreements are the only way to make development on small parcels financially feasible, if minimum requirements cannot be waived or significantly reduced.


Access to the off-site parking must be formally documented, either through shared ownership between the sites or through a formal agreement between the developer and the owner of the off-site parking. This is a common strategy in walkable, mixed-use districts in which the lack of this option might significantly discourage investment. A similar credit option offered in cities with robust public parking systems (public lots and garages) is to allow developers to secure parking permits for these facilities, which are credited as parking spaces toward their minimum requirement. The maximum distance allowed between the proposed parking supply and the development varies, often based on local walking conditions and norms, from 400 feet to 1,500 feet or more.


Inclusion of adjacent on-street parking spaces to a site is another common example of off-site parking credits used in mixed-use zoning throughout the North Texas region.

Difficulty

$

Cost

Impact

Key Benefits

  • Provides developers with flexibility in accommodating the parking demand generated by their projects

  • Incentivizes more efficient use of excess parking supplies in walkable, mixed-use districts

  • Prevents oversupply of new parking

  • Allows developers to maximize the land-use densities of their sites

  • Concentrates area parking supplies in fewer, larger, more efficiently designed and managed facilities

  • Creates opportunities for municipalities to directly manage new parking that is built to support private development.

Case Studies

 NATIONAL 

 REGIONAL 

Crediting Off-Site Parking

Mesa, AZ

Development projects may be granted permission to locate all or a portion of their required off-street parking supply on a remote and separate lot from the site of the principal use, if:

  • The location is not more than 1,000 feet from the primary entrance on a legal, practical walking route.

    • -Van or shuttle service may allow the distance limitation to be waived.

  • Shared or Exclusive parking agreements guarantee long-term availability of the parking supply

Crediting Off-Site Parking

Denton, TX

The Denton Development Code allows for approved shared parking and off-site parking for nonresidential and apartment uses across the City. There are multiple ways for existing spaces to be counted towards the required off-street spaces, including:

  • Any public parking facilities within 500 feet (up to 25 percent) of the property

  • Every recorded shared/off-site parking space within 500 feet of nonresidential properties and within 300 feet of apartment properties.

  • The provision of valet parking, which increases the distance of counting shared/off-site parking for nonresidential properties to 1,000 feet.

  • On-street spaces abutting the property.

Implementation Considerations

Role of Public Sector

  • Defines parameters for crediting off-site parking toward a project’s minimum parking requirements, primarily by defining the maximum-allowed distance between the property and the proposed parking

  • Defines requirements for shared-use agreements between the developer and the owner of the off-site parking

Role of Private Sector

  • Explores potential partnerships with off-site property owners

  • Contracts with partners and provides agreements as part of proposal submission, with specifications on responsibilities, terms, and conditions

Timing

  • Off-site parking agreements can benefit both existing property owners, by making use of (and likely monetizing) their site’s excess parking capacity, and developers who can support their project with reduced on-site parking