San Diego, CA
San Diego wants hotels and restaurants to pay more for valet stands and on-street dining. It’s not going over well.
San Diego hotel and restaurant owners are balking at a city proposal to charge them steeply higher fees for their valet parking spaces and on-street outdoor dining areas.
City officials say the hikes are justified, because San Diego loses revenue when parking spots that could otherwise have meters are devoted to other uses like dining or valet parking drop-off and pickup.
But critics, including the county lodging association and merchant groups, say the hikes could prompt some restaurants to eliminate on-street dining altogether and force hotel guests to clog streets by double parking.
One Mission Beach restaurant owner said Tuesday the city can’t keep raising fees and costs on a struggling industry and not expect a rash of closures. “We are teetering,” said Eric Christiansen, the owner of Guava Beach Bar & Grill.
The proposal, which the City Council is scheduled to consider early next month, is part of a wider city campaign to cope with expected budget deficits by raising parking rates and beginning to charge in new places like Balboa Park.
City officials say it’s costing taxpayers many thousands of dollars per year in potential parking meter revenue — revenue that could fund city services — by allowing on-street dining and valet spots, especially popular downtown because hotels there lack space for self-parking by their guests.
And the amount of potential revenue the city is missing out on rose sharply this year, after hourly meter rates were doubled from $1.25 to $2.50, daily meter operations were extended by two hours and a special event zone with higher rates was created near Petco Park.
In an effort to recover a greater share of that lost revenue, city officials are proposing to raise the fees for street-dining space by more than 30% and to hike valet parking fees even more dramatically. Currently, those fees are nearly $38 per square foot in most areas; they would rise to $50.
Fees for outdoor dining would rise by nearly 32% in most neighborhoods and even more in the special-event zone. Also, a fee exemption would be eliminated for seating that is open to the public, instead of reserved only for restaurant customers.
For valet spaces, hotels would pay $5,600 per year for the standard allotment of two valet street spots of 22 feet each, up from the current $600 per year. City officials say the $600 is an application fee, and the $5,000 is a new fee that aims to recover part of the city’s costs.
The hotel industry has mostly accepted that change, but it’s objecting to proposed fees for hotels that want more than two valet spots. Each additional valet spot beyond two would cost a hotel $10,000 in areas that have parking meters and $15,000 in the special-event zone.
“That is just too high for guests, as well as the operators, to be able to absorb,” said Fred Tayco, executive director of the San Diego County Lodging Association.
Tayco said some hotels could end up paying close to $100,000 per year if they need several additional valet spots, predicting that scaling back valet spots would lead to dangerous double parking and unloading of luggage.
“While valet parking may appear like a luxury, for downtown it’s a necessity,” said Tayco, noting that 63% of tourists who visited San Diego last year came by car.
Michael Trimble, executive director of the Gaslamp Quarter Association, questioned how the city arrived at the new proposed fee amounts.
“We can’t support arbitrary, unpublished surcharges that punish businesses,” Trimble said.
City officials say the proposed fees were carefully calculated based on the typical revenue a parking meter generates in a year.
Ahmad Erikat, a program manager in the city’s Transportation Department, said a typical meter downtown generates $25 per day, which may rise to $30 per day now that operating hours have been extended by two hours.
Erikat said the city multiplied that rate times the 350 days per year that meters operate — there are 15 holidays per year when they don’t — to get a total expected revenue per downtown meter of $10,500. So the city decided to charge $10,000 for additional valet spots.
“The objective is to be as close as possible to cost recovery,” he said.
In the special-event zone, a similar calculation led the city to propose $15,000 per valet spot, Erikat said.
For restaurants or hotels willing to operate valet spots only from 5 p.m. to midnight, the fee would be $2,500, which is based on how much meter revenue could otherwise be generated during those hours, Erikat said.
He stressed that the first two valet spots would still be heavily subsidized by the city. Instead of charging the $20,000 that cost recovery would dictate — $30,000 in the special-event zone — the city would charge $5,600 for those two spots.
Full cost recovery would kick in only when additional spots beyond the standard two are required by a business.
The proposal was approved 4-0 by the City Council’s Active Transportation and Infrastructure Committee last month. It is scheduled for a vote by the full council on either Nov. 2 or Nov. 3, according to a spokesperson for Mayor Todd Gloria.
Councilmember Stephen Whitburn, who chairs the committee and represents downtown, said he sympathizes with businesses facing higher fees.
But he suggested keeping those fees down is less important than making sure hotels have the ability to claim additional valet spots if they need them.
“The policy enables valet services to remain possible while enabling the city to recover the true cost of lost parking revenue,” Whitburn said.
He said the hotels make enough money to cover the higher costs. “The collection of valet parking revenue results in some pretty significant revenue,” he added.
Christiansen, the Mission Beach restaurant owner, considers the fee hike for street dining a huge mistake.
“It’s a ridiculous increase by a tone-deaf city,” said Christiansen, who has operated Guava Beach Bar & Grill for 23 years.
With the city’s minimum wage still rising incrementally and costs for food and energy going up, he said the city shouldn’t charge more for street dining spots when restaurants are barely surviving.
“We can’t absorb anymore costs — we are teetering,” he added. “It’s going to be a rude awakening for the city when restaurants start to close. Boarded-up buildings are a bad look for tourists.”
The Little Italy Association, whose businesses would be some of those most affected, declined requests for an interview.
Remarkably, the San Diego State Aztecs can still win a share of the Mountain West title despite losing four of their last five games.
SDSU (19-10, 13-6) needs to beat UNLV (16-14, 11-8) on Friday night in its home finale and then have New Mexico win at Utah State on Saturday for a three-way tie.
The Aztecs had their destiny in their hands less than a week ago, but then lost at New Mexico (13-6) on Saturday and then again at Boise State on Tuesday night, pretty much snuffing out their NCAA Tournament at-large bid chances and apparently ending their hopes at the MW title in their final season in the conference.
But then Utah State (14-5) was routed at UNLV and New Mexico lost at home to Nevada, setting up the possibility of a three-way tie. It’ll be moot, however, if the Aggies beat the Lobos, which will give them the title outright and the No. 1 seed in next week’s conference tournament in Las Vegas.
That’s life in the MW, which the Aztecs and Aggies are leaving after this season to join the new-look Pac-12, along with Boise State, Fresno State and Colorado State.
The big picture
The Aztecs were voted the unanimous preseason favorite to win the regular-season title, based on a loaded roster under coach Brian Dutcher, including the return of Miles Byrd and Magoon Gwath after pulling out of the NBA Draft, and Reese Dixon-Waters after missing last year with a foot injury.
But it’s been a rough go from almost the start, when a rough showing in the non-conference schedule put them on the bubble for an at-large NCAA Tournament berth.
They started to find themselves early in league play by running off a seven-game losing streak, but then lost consecutive games at Grand Canyon and Utah State. Their current skid includes a surprising home loss to Grand Canyon and then a startling road loss to Colorado State.
They routed Utah State at home last week before losing at New Mexico on Saturday and then being routed at Boise State on Tuesday night, when they were outrebounded 37-15.
The last three games were all Quad 1 opportunities in the NCAA NET Rankings, but going 1-2 in those games further hurt their already weak chances at an at-large tourney berth. Those rankings are used by the NCAA Tournament Selection Committee as the primary sorting tool for selection and seeding for March Madness.
Now they’ll almost certainly have to win three games in three days at the MW tournament to claim the automatic bid to reach March Madness for the sixth straight year.
Key facts
The Aztecs will be facing UNLV for the final time in the regular season, as the Runnin’ Rebels will be remaining behind in the MW.
The teams will meet for the 86th time overall, with the Aztecs leading the series 45-40. SDSU is 21-14 against the Runnin’ Rebels in San Diego and 18-8 on Steve Fisher Court.
Below is a look at how to watch UNLV at San Diego State
How to watch UNLV at San Diego State
Date: Friday, March 6
Game time: 7 p.m. PT
Where: Viejas Arena | San Diego
How to watch: CBS Sports Network
How to listen: San Diego Sports 760 (local)
On Thursday, the average price of a gallon of self-serve regular gasoline in San Diego County recorded its largest increase since Sept. 28, 2023, rising 8.7 cents to $4.894, its highest amount since Nov. 13.
The average price has increased 15 consecutive days, rising 28.7 cents, including 7 cents on Wednesday, according to figures from the AAA and Oil Price Information Service. It is 22.4 cents more than one week ago, 38.6 cents higher than one month ago and 14.5 cents greater than one year ago.
The average price has dropped $1.541 since rising to a record $6.435 on Oct. 5, 2022.
“Gas prices are rising primarily due to a recent surge in crude oil following strikes on Iran by the U.S. and Israel,” Kandace Redd, the Automobile Club of Southern California’s senior public affairs specialist, told City News Service. “Any conflict with Iran can send oil prices higher, as Iran is a major oil producer and about a fifth of the oil consumed globally travels through the Strait of Hormuz between Iran and Oman.
“Gas prices are increasing because of seasonal factors too. Refineries are beginning the switch to more expensive summer-blend fuel, and demand is picking up as we head into the spring break season with more people on the road.”
The national average price rose 5.3 cents to $3.251, its highest amount since Sept. 11, 2024. It has risen five consecutive days, increasing 26.9 cents, including 8.9 cents on Wednesday.
The national average price is 26.8 cents more than one week ago, 36 cents higher than one month ago and 14.4 cents greater than one year ago. It has dropped $1.765 since rising to a record $5.016 on June 14, 2022.
UNLV Rebels (16-14, 11-8 MWC) at San Diego State Aztecs (19-10, 13-6 MWC)
San Diego; Friday, 10 p.m. EST
BOTTOM LINE: UNLV faces San Diego State after Kimani Hamilton scored 24 points in UNLV’s 92-65 victory over the Utah State Aggies.
The Aztecs have gone 13-2 in home games. San Diego State is eighth in the MWC with 9.0 offensive rebounds per game led by Miles Heide averaging 2.0.
The Rebels have gone 11-8 against MWC opponents. UNLV ranks eighth in the MWC shooting 34.4% from 3-point range.
San Diego State averages 79.1 points per game, 0.6 more points than the 78.5 UNLV gives up. UNLV averages 7.2 made 3-pointers per game this season, 1.9 fewer made shots on average than the 9.1 per game San Diego State allows.
The teams play for the second time in conference play this season. San Diego State won the last meeting 82-71 on Jan. 24. Miles Byrd scored 23 points points to help lead the Aztecs to the win.
TOP PERFORMERS: Reese Dixon-Waters is shooting 35.9% from beyond the arc with 1.6 made 3-pointers per game for the Aztecs, while averaging 13 points. Byrd is averaging 10.2 points and 5.1 rebounds over the past 10 games.
Dra Gibbs-Lawhorn is shooting 50.9% and averaging 20.6 points for the Rebels. Hamilton is averaging 1.4 made 3-pointers over the last 10 games.
LAST 10 GAMES: Aztecs: 5-5, averaging 74.9 points, 28.9 rebounds, 13.7 assists, 6.9 steals and 4.2 blocks per game while shooting 46.4% from the field. Their opponents have averaged 69.0 points per game.
Rebels: 6-4, averaging 84.1 points, 32.3 rebounds, 14.7 assists, 6.4 steals and 4.8 blocks per game while shooting 50.0% from the field. Their opponents have averaged 80.8 points.
___
The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.
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