Downtown San Jose Keeps Street Meter Rates Steady While Garage Fees Rise

Anyone heading to Downtown San Jose for dinner, a show, or late work will notice a shift in how the city prices its public parking. In late September the City Council voted 7-3 to drop plans that would have raised street meter rates and extended enforcement until 9 p.m. Instead, hourly rates in city garages moved from $4 to $5 after the first 90 minutes free, effective in October. Special-event garage rates now range from $15 to $35, and eligibility for discounted monthly permits expanded so more downtown employees qualify.

The decision followed months of pushback from business owners, service workers, and patrons who argued that higher street fees and evening meters would slow the area’s recovery. Councilmember Anthony Tordillos, who represents the district, put forward the alternative that ultimately passed after earlier versions deadlocked. Street meters stay at $2 per hour with enforcement ending at 6 p.m. Monday through Saturday. The first 90 minutes remain free in the major garages, including the Convention Center garage on non-event days.

The compromise left the parking fund short of the revenue already built into the current budget. City staff had transferred $1.2 million from the parking fund to the general fund to help close a larger deficit, and deferring the street-meter increases pushes that shortfall into next year’s budget cycle. Officials directed further analysis of parking utilization, revenue, and infrastructure needs, including structural work and security upgrades at several downtown garages.

Downtown businesses that spoke at the meeting largely welcomed the outcome on meters while noting that garage increases still raise costs for some visitors and employees. Late-night workers raised concerns about walking to garages after the Groundwerx ambassador program ends for the night. The vote occurred against a backdrop of improving hotel and event activity in the core, with the council balancing those gains against ongoing budget pressure.

Drivers who park on the street for shorter visits continue under the existing meter rules. Those who stay longer or attend events will see the new garage rates when they exit. The parking board and staff are expected to return with longer-term recommendations as the city evaluates how the current setup performs through the rest of the fiscal year.

Source: The Mercury News