More than four years after it was opened, several Biddeford officials remain frustrated about how the city’s parking garage is being operated, saying the garage operators still have no incentive to increase efficiency and lower the city’s financial obligations.
Over the past year, the city has paid the garage owners nearly $570,000 in stabilization payments in order to guarantee a profit from the garage.
On Tuesday, the city council heard a presentation from Premium Parking, a New Orleans-based company that operates parking facilities all over the country.
Councilors said they were hoping to hear and see more “hard data” about how the garage is used and what can be done to lower the city’s ongoing financial commitment.
“We got a lot of icing, but I was looking for cake,” said Councilor Marc Lessard during an interview after the meeting. “There was no substance. They [Premium Parking] have no incentive to increase efficiency and lower costs.”
Under a contractual agreement with the garage developers, every six months the city is required to make a “stabilization payment” to the developers in order to guarantee a profit for the private company, regardless of customer usage.
In June of this year, the city paid $208,227 as a stabilization payment. Previously, in December 2023, the city paid $169, 695; and in June 2023 the city paid $191,246 to the developers.
During Tuesday’s council meeting, Charlie Grab, a “market president” from Premium Parking made a brief and rather perfunctory presentation to the council.
Grab, who has handled his company’s New England operations for roughly six months, was scheduled to appear in person but said he was ill and conducted his presentation via ZOOM.
Grab told the council that almost half of customers use smart phone cameras to pay for parking over the last three months. Use of the company’s mobile app has increased 47 percent Grab said while direct cash or credit card payments at a kiosk have decreased by 41 percent.
Grab also said that most customers use either the garage or surface lots for a duration of two hours, making up 56 percent of all transactions.
Earlier this year, parking at the Washington Street parking lot was reconfigured converting to more short-term parking versus day-long parking. Grab described that change as a “nice success story” by doubling revenue at that lot.
But once again, Grab was somewhat vague when asked for recommendations about how to improve efficiency and usage at the garage.
Grab said many other communities with an open-roof garage use the space for things such as “beer festivals” and “pickle-ball tournaments.”
Grab also said his company is working on “an outreach effort” in order to form partnerships with downtown business owners and possibly creating a “newsletter” to explain how the garage operates as well as “fine tuning” signage.
Councilor Roger Beaupre said he was less than impressed after the presentation.
“It’s just the same old story,” Beaupre said. “It seems to be a constant problem. They have no incentive to do anything because they are guaranteed a profit.”
During his campaign to become the city’s mayor, then city councilor Marty Grohman had strong words for Premium Parking, promising to “get tough” with the garage operators and have them appear before the council on a regular basis.
“It seems to be a constant problem. They have no incentive to do anything because they are guaranteed a profit.”
— City Councilor Roger Beaupre
On Tuesday, the mayor’s tone about the garage and surface lots was markedly different, saying the company has been “very responsive” and saying that he liked their ideas for increasing usage.
Council President Liam LaFountain also said he was hoping to drill further down in the data and hear more concrete solutions on Tuesday.
LaFountain pointed out that the council – in August 2023 — asked City Manager Jim Bennett to provide the council with some ideas about parking companies that could be used in Biddeford.
Bennet said “things were going well” and that he basically forgot about the council’s request.
Betsy Martin, a senior citizen advocate and chair of Age Friendly Biddeford, said she has received a lot of negative feedback about the garage.
She suggested that the city should implement a shuttle service between the garage and downtown because “it’s not an easy walk” for seniors.
Grab said that he would personally attend the council’s next meeting in January.
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LESSONS IN MEDIOCRITY 
I don’t understand why the city could not sue that company for breach of contract for not making any effort to improve revenue.
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Randy, let me vent on this subject. I spoke against this deal and made an attempt to use the following numbers.
The city paid more than $6M to buyout Merc, then let the property sit empty for 5 years, during which the city lost $1M per year in lost tax revenue. By my math, the deal cost $11M, while it was expected that whatever was built on the site would more than cover the cost!
Now, many would shout about the development of the City and the benefits…but the parking garage costs continue, in my mind, to show the bottom line benefits to look bleak when one looks at our property tax bills.
A deal gone bad.
Ken Buechs
Sent using myEarthLink
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Horrible decision to build a parking garage so far from people traffic. I promise you I’m not going to Rielly’s or the bank and walking back & forth.
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it’s enough to make you sick really. No one wants to listen. This has cost taxpayers over a million dollars so far. Thanks to the Cassavant/Bennett team for putting the burden on the taxpayers. MERC pales in comparison to this behemoth.
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Wonder why they are not putting any effort to increase usage? Well if you’re going to pay them regardless why put in one iota of effort. We just send them taxpayer money because we love them I guess. This was dumb from the beginning but the team of Cassavant/Bennett got what they wanted. City councils seem to think that the money grows on trees. Shame on them.
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I have little sympathy for the City who has failed to implement signage, maps and lighting between the parking garage and downtown destinations. This is clearly under City purview. The City also chose the “cheapest and easiest” option of not putting it central downtown. All the sidewalk work near the garage to remove additional parking is a deliberate slap at local businesses.
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It sounds like it was a bad idea from the start, do you believe that to be true? If so, who were the ding wangs that signed off on it?
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The city council voted to approve the project in 2015. It was a close vote. I am proud to say, however, that my wife was on the council then and voted against it.
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