Business Owners Worried About Sacramento Ditching Free Parking, Increasing Rates

SACRAMENTO (CBS13) — Sacramento is hoping to raise parking rates to help pay for a new downtown arena for the Sacramento Kings.

The Golden 1 Center is already lighting up the Sacramento skyline, but people are already starting to see red over proposed parking rate increases and elimination of free parking days.

Will Weaver, owner of Houston's Classic Hairstyling, worries the city's proposal will drive people away and cut into his bottom line.

"It's a deterrent," he said. "It doesn't help a lot of the merchants around downtown."

One shopper from Elk Grove says the parking changes would change her shopping habits.

"If I had a choice between staying locally, definitely stay local," Emily Duran said.

Pete Haynes, the owner of Denim Spot on K Street says the payoff is worth it.

"Stadium comes in, some more restaurants, lofts—this is about to be the target area of the city," he said.

To make it all happen, the city wants to increase meter rates by 40 percent from $1.25 to $1.75. Another idea, and perhaps the most controversial, scraps free parking after 6 p.m. and could get rid of free Sunday and holiday parking.

City officials say the extra money would help pay for the bonds that pay for the arena. Parking currently generates $30 million a year. The city estimates it needs to bring in about 15 percent more, or $4 million, from parking meters and parking garages.

City Treasurer Russell Fehr sealed the deal on the arena's financing plans, and says the city is counting on new sources of income in addition to the parking changes.

"The city will begin collecting new tax revenue from projects such as the hotel next to the arena," he said.

The Sacramento City Council is expected to review the parking changes in September, but it's unclear when they will be vote or when Sacramento residents could be paying more to park.