The latest case before Scottsdale City Council which requires in-lieu parking credits for a restaurant/bar could be described as an owner in a Catch-22 situation. The new Old Town Tavern (OTT) request is to expand its existing business, and the city requires the owner to pay indefinitely $80,000 per year for 41 parking spaces somewhere in the nearby area.
Downtown businesses usually occupy small lots with limited parking. During the 1970s, the City formed an Improvement District that assessed property owners south of Indian School Road, leading to the construction of five parking garages/lots in Old Town.
Next, Scottsdale adopted the in-lieu parking ordinance in the 1990’s responding to area redevelopment and to centralize parking in garages or shared lots. Since then, many businesses have paid into the parking fund. The $80,000 tab per year for OTT is the largest amount ever assessed and a large nut for the business to absorb…