Drivers in the Lloyd District, visitors at the Oregon Convention Center and nearby residents have all surely noticed the construction cranes popping up in the area. Construction has even shut down a MAX station.
But the growth in the Lloyd District has had a huge benefit to Metro's bottom line, as commuters to inner Northeast Portland fill a Metro-owned garage daily.
Construction of the Hassalo on Eight development, near Northeast Ninth Avenue and Multnomah Street, closed a 400-space parking lot. Almost immediately after the lot's closure, Metro's Irving Street garage saw an increase of customers and a resulting boost to revenues.
In December 2013, the garage generated $66,192 in revenue, with an average of 461 vehicles parking in it daily. As recently as September 2010, the garage was only generating $25,066 in monthly revenue, with an average of 279 daily parkers.
Traffic went up as the economy recovered, but parking began to spike at the garage about the same time the parking lots north of the NE 7th Avenue MAX station closed for apartment construction. Last October, a record $68,509 in revenue was generated at the garage.
The garage is managed and operated by City Center Parking, which operates about 200 lots or garages in the Portland area.
"City Center collects the revenue and pays for any operating expenses," said Rory Greenfield, facilities and fleet manager for Metro. "They also handle small maintenance and clean up, but big investments are done by Metro."
Greenfield said that Metro recently updated the garage's sprinkler system and installed a motion sensor lighting system to conserve energy.
"Metro really sees the garage as an asset," Greenfield said.
It's an asset that does incur costs – from 2009-11, Metro spent nearly $1.2 million renovating the garage.
It's also an asset that has provided an influx of cash for Metro's general fund. When the construction permit for the Hassalo on Eighth site was approved in last August, cars that used to park there had to go somewhere - and the Irving Street garage became that destination.
"City Center Parking recognized there were displaced customers from the closure of the lot on Northeast Ninth and Multnomah," said Julian Jones, vice president of business development for Impark, the parent company of City Center Parking. "They approached Kaiser about reserving 90 spaces for employees."
Reaching out to potential customers and advertising during nearby events helps City Center fill their lots and maximize revenue. They also constantly evaluate demand for the parking lots they manage to find out if they need to adjust prices.
"Our company offers the expertise to find a price equilibrium to maximize profits, but allow for spaces to be available for customers," Jones said.
This delicate balance is struck so that lots get close to full, but a couple of spots are left open for potential parkers.
"We are focused on serving customers," Jones said.
This focus has benefited Metro, as it has averaged $60,500 in monthly revenue from the garage, while the cost of operating the garage has only averaged about $6,750 a month. This has meant more than $500,000 a year going toward Metro's general fund.
Metro deputy finance manager Brian Kennedy said rates are based on the charges at nearby garages.
"We do a market survey to try to keep rates in line with neighboring garages," he said, adding that Irving Street's rates are lower because of the garage's location at the edge of the Lloyd District.
Despite its recent crowding, managers said they have no plans to raise rates for parking at the garage.
"The lot is definitely starting to fill up and there is a little pressure to, but no rate increases are scheduled at this time," Jones said.