New York City Asks Citi Bike to Cover $1 Million in Lost Parking Revenue

Citi Bike station in NYC. (Flickr / JMazzolaa)

Citi Bike station in NYC. (Flickr / JMazzolaa)

New York City’s bike share system, Citi Bike has had a rough first year. The bikes are in bad shape, the docking technology is glitchy, and the system has been plagued with financial troubles for months. To make matters worse for the beleaguered program, New York City is asking Alta Bikeshare—the company which oversees Citi Bike—to cough up $1 million to cover lost parking revenue from the parking spaces the bike stations occupy.

According to the Wall Street Journal, a provision in Alta’s contract states that the company must reimburse the city for revenue lost from turning parking spaces into bike docking stations. That provision was part of  Mayor Bloomberg’s commitment to make the program entirely free of tax payer dollars—a commitment that Mayor de Blasio plans to keep.

But because of ongoing negotiations between Alta and REQX Ventures—an investment firm that could provide Citi Bike with much-needed capital—this $1 million check may never be written or cashed. The two entities are reportedly trying to remove this parking provision from a revised contract. The Journal reported, “cutting Alta a break on lost parking revenue could be construed as an effective public subsidy, and could raise political and philosophical questions about whether taxpayers should support New York City’s bike-share.” As with all Citi Bike news, though, what happens next is anyone’s guess.

One Response to “New York City Asks Citi Bike to Cover $1 Million in Lost Parking Revenue”

  1. PeterNYC says:

    How about they also cover the value of time New Yorkers with cars, families, and responsibilities have wasted on looking for parking space in their own neighborhoods, after the demented idea of placing rental bikes on streets instead of sidewalks or plazas?

    Between CitiBike and Bloomberg’s removal of some 20% or parking spots “for the greater good,” the grown ups with children and taxes to pay spend hours every day looking for parking instead of spending time with their families. Perhaps CitiBikes should reimburse the cost of paid commercial parking garages for residents on the blocks where the bikes are stored.

    We have reached the point of stunning stupidity and complete disregard for the most important residents of the city – the productive, the busy, the working, the family people, that ones who pay taxes and create prosperity for the community.

    Car drivers have paid for streets that have been painted over and blocked by Bloomberg. We have paid for ridiculously expensive bike lanes, which half of bikers don’t use ,anyway, without asking bikers to pay for them, i.e. through bike registrations or bike taxes and licenses (many nations have that). The cost of delivery and parking tickets has very significantly increased the cost of food and construction in Manhattan, as it’s impossible to get materials to the City through narrowed commercial roads leading to bridges and highways – i.e. Flatbush Ave, Flushing Ave., and East Houston. Bike lanes and concrete planters block side streets, so there is a permanent gridlock on Williamsburg Bridge, something that wasn’t happening outside of brief rush hours only 6 years ago.

    When is this insanity going to end? Do we really care more about 18-year-old bikers unable to follow traffic laws and tourists than tax-paying, family adults who need cars?

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