CBD businesses are offering a pessimistic preview of the pain heading towards businesses in Kita Ward, Southtownsville and Pimlico if paid parking is expanded next year.
Despite Australia's cost-of-living struggles, the majority of Townsville City Council members voted against suspension and consultation with the community about double the parking fee to $2 per hour and expanding paid parking spaces to areas surrounding Gregory ST, Mitchell Street, Palmer ST and Fulham RD Medical Capacity from January 6, 2025.
Rather than talking to affected businesses, councillors relied on PSA Consulting's 2022 parking report. This relies on PSA Consulting's 2022 parking report to predict future parking growth and utilization.
Following the Council's parking fee hike on July 29, the CBD Business Survey conducted by Townsville Breaking News highlights the challenges faced by struggling businesses hoping the Council will rethink its parking approach.
Spotted hen bone ants and collectibles
As one of CBD's longest privately owned companies, Ian Fleming, a partner in spotted hen bone ant and collectibles, said he had seen a rapid decline in the viability of CBD as a retail centre.
“Visitors to Townsville regularly ask what happened to Townsville, as this is often the only contact with the city,” Fleming said.
“I understand the council's position and the need to raise revenue. The proposed parking fees are not excessive compared to the southern capital, but locals compare them to free and often local shopping centres under the shade.
“This is another cut in shoppers available to city traders, and may prove that they added a final straw to the camel's back. Many traders have left this year. We know that as the current lease is renewed, some options are considering their options.”
Mello Cafe
After recently marking its fifth anniversary with CBD, Mello Cafe owner Danielle Davies said the increased parking costs have been negatively affecting both businesses and employees in the city.
“Many workers are not in the city for just two hours. There's not enough parking for the whole day. Plus, if someone goes to court, you can't predict how long it will take,” Davis said.
“The overall impact of parking fees has been negative. With the recent increase, fewer people are willing to come to the city.”
She says their business relies on local workers as their main clients, and if the client finds parking fees at an affordable price, many choose to work from home instead.
There was also concern that more people would turn to suburban shopping centres.
“The cost of parking has already discouraged many people from visiting the city, and instead preferring suburban shops,” she said.
“The point is to find staff who are willing to pay for the parking lot, especially with limited parking spaces.”
My Marriage
My Mali owner, Lisa Harrick, said parking is always a big problem for the city centre.
The council has traditionally played a supportive role by increasing customer numbers “significantly” by providing free CBD parking to provide free CBD parking every December, but the council said it refused to contact the shopkeeper about an increase in payroll parking fees.
She said the increase in parking lots had a negative impact on the number of customers, increasing the pressure created by the increased cost of living.
“No one would be willing to pay any more because the cost was a $1 hour issue. I was already with a customer who said I wasn't happy with the increase,” Hullick said.
“The number of (customers) is definitely declining. Many locals refuse to pay for parking and shopping.
“There's also the issue of parking for two hours, where shoppers are late back in their cars and endanger large fines.”
She said it was embarrassing to have to explain again and again why the sad state of the city's heart is so sad.
“We feel that there is no communication and that the city centre has not been placed in a 'too stiff basket' and that we are very disappointed with the council. ”
Betty Blue and Lemon Tart, Papa Crist
After considerable investment in transforming the CBD building that hosts Papa Cristo's deli, business owner Chris Christensen was in favor of timing parking for CBD, but opposed the increased cost of parking.
“We found no immediate changes to the transaction at this stage. I think the increased costs provide an opportunity for consumers to take a little time to rethink some habits,” Christensen said.
“I think it's safe to assume that some customers are looking elsewhere, but the majority of your customer base will remain when you're living or working within CBD.”
He said the increase in inflation is the biggest contributor of costs within the business.
“If the costs from the suppliers are shifted and you can manage them regularly, now you see that it will increase at the same time,” he said.
Empire Altana Cards and Events
The Empire Altana Card and the event were not affected by the parking fee hikes due to subsequent trading hours, but owner Jason Lynch said he felt his fellow business owners “thinking twice about stopping by the city.”
“It's easier to get the park right now because fewer people will hug the space on the day,” Lynch said.
“Yes, I think… it's going to have a negative impact on retailers in the city. I've traded seven nights in the city and there's no close traffic on foot between Sunday and Thursday.
“Thankfully, we have a considerable number of regulars supporting us. It would be better if more places were traded to increase the overall atmosphere and traffic of CBD at night.”
Chamber Roasts Council's paid parking approach
Townsville Chamber of Commerce Chief Executive Heidi Turner said the council's decision to double the parking fee is a major concern for members of the Chamber of Commerce, operating in CBD, where feedback was “overwhelmingly negative.”
“CBD in Townsville does not have amenities for big cities like Sydney or Brisbane. Public transport is not a practical alternative here. Parking fees are not productive when comparing parking fees with significantly lower city or local parking fees,” Turner said.
“The increase in parking fees is effectively an additional tax on CBD workers, and private parking fees have also risen since council parking increased, which has led to further rising costs for the business.
“When I talk to CBD retailers, it's clear that over the years, parking fees and cashless systems have already blocked CBD visitors.
She had already heard that customers were choosing a suburban shopping centre where there was no parking.
“CBD companies are dealing with rising costs across the board, including wages, insurance, energy, and inflation. Consumer spending is also declining, making it difficult to survive,” she said.
“The lack of consultations before the (Townsville City Council) budget is passed, especially in the parking lot, adds only a vote on these challenges and consultations, if businesses are expressing concern, and the disruption is not at all business-friendly.
“The challenges raised by CBD's paid parking lots will spread to Fulham Road, Palmer Street, Gregory Street, and payroll parking should proceed at the end of the year.”
As CBD faces several challenges, including free space, anti-social behaviour, paid parking and lack of vitality, she said collaboration between all levels of the government and the private sector needs to be built and vibrant CBD districts that attract both people and businesses rather than initiatives to stop people.
“With tens of thousands of cruise ship passengers next year, there is an important opportunity to create a city mind where people want to spend their time and money,” she said.
“The Chamber of Commerce continues to advocate for better consultations on decisions that will affect Townsville's business environment.”
Townsville City Council responds to criticism of paid parking
A Townsville City Council spokesperson said the Townsville CBD issue was ongoing and existed before the parking fee hike was introduced on July 29th.
Questions were not answered about pay parking consultations, community paid parking feedback, issues of customers being directed at suburban shopping centres, or the future impact of expanded pay parking at Kita Ward, Southtownsville and Pimlico companies.
“Like everyone, the council is not immune to the challenge of rising costs across the board,” the spokesman said.
“The increased paid parking fees and location balance the needs of businesses, residents and workers, enabling the council to provide the core services that are appropriate for the community.
“The revenue included in the 24/25 budget for increased and new payroll parking is $2,020,760, and will be calculated for six months taking into account the installation of a new parking meter.”
This revenue goes to providing core services and maintaining much-loved community assets like Strand, which costs more than $6 million a year.
He said it's not just the responsibility of local governments to invigorate cities, but while the council has made substantial investments in grants such as city activities and housing incentive policies, it has been revitalizing vacant storefronts and spaces through council leases, expanding leases for council buildings such as CBAR to allow for further private investment and recent approval for the new office tower to get Walker St.'s recent approval.
The Council has committed to working with governments, businesses and wider communities at all levels to invigorate and grow the city, and recently relocated funds to enable the much-loved Reef headquarters to take pride in our city.
“The Council is proud to work with Townsville businesses to help Townsville grow and maintain local sourcing. In 23/24, the Council's spending with local businesses was $231 million with 656 local suppliers.
leafon.smith@news.com.au
