Plzeň has approved the conditions for the first concession parking house

Plzeň - A total of 18.45 million crowns excluding VAT will be paid annually by Plzeň to the investor who will build a parking garage for 430 cars near the center. Plzeň will pay for parking availability for 19 years from the opening of the building, and during this time the investor will bear all costs related to construction, operation, maintenance, and repairs. The city's monthly payments may decrease if the investor does not provide 100% quality of the required services. The money collected from parking fees will go to the city treasury. The facility will also include 1600 square meters of commercial space. The first PPP contract in the Czech Republic, i.e., a partnership between the public and private sector, was approved by the council today.
    According to estimates from the city hall, construction of the parking garage will begin this fall, and its opening is planned for spring 2011. The building, named Rychtářka, is to be the first of several planned parking garages aimed at relieving city center traffic. Additional parking capacity is planned in Pětatřicátníků Park. The center of Plzeň has long struggled with a shortage of parking spaces, and the city hall also wants to calm the city center. According to Deputy Mayor Petr Rund (ODS), the cost of constructing the parking garage will be around 250 million crowns for the investor. The city will gain ownership of the building from the start.
    The PPP project is reportedly 7% more advantageous than implementation under the city's management. The city hall will also transfer construction risks to the contractor, such as potential additional costs and delays during construction, maintenance, reconstruction, and so on. Three interested parties applied for the announced competition. The company Hermosa Real Estate was selected.
    Because the city will operate the parking system, it can adjust prices and thereby regulate parking on the streets in the center. With an hourly rate of 20 crowns and an average 20% occupancy of parking spaces at Rychtářka, the city hall would earn over 12.5 million crowns annually. If the hourly rate were 30 crowns and the occupancy remained at an average of one-fifth throughout the year, the city's treasury would collect more than 18.8 million crowns.
    According to a survey commissioned by the city hall, 93% of respondents experience parking difficulties in the center on weekdays, and 85% of people do so on weekends. A 94% majority of drivers welcome the increase in parking capacity, and nearly 83% are in favor of the parking garage. However, drivers also do not want to pay much for parking. A total of 36% of people are willing to pay 20 crowns per hour for parking, only 16% of respondents would be willing to pay 30 crowns, and about 10% would pay up to 40 or 50 crowns per hour.
    Plzeň has problems with the revenue from parking fees in paid ground spots in the center. While other cities achieve a revenue rate of 60 to 80 percent, Plzeň has so far only reached 20 percent. However, the new city organization, which will be responsible for parking starting in January, is already changing this state. In the first three months, the revenue from parking spaces improved by up to a quarter compared to last year, Rund stated. Over the next few years, he aims to improve compliance with paid parking to at least 50 percent.