January 8, 2009 – A proposed downtown parking fee, intended to reduce congestion, has River North Association concerned it would only make things worse.

In December, Mayor Daley proposed charging motorists a special “congestion reduction” fee to park downtown in the morning and late afternoon, either on the street, in a lot, or in a garage. The money would help pay for improvements to public transportation.

But the president of River North Association, an organization that promotes the River North neighborhood of downtown Chicago, says it would have a “devastating” impact on the downtown economy. In a letter to association members, Mark Kelly says such an ordinance “will send businesses and their customers to the suburbs along with their much-desired tax revenues.”

Kelly says it could result in a loss of jobs and businesses from the Central Business District, an erosion of the city’s tax base, degradation of the city’s convention and tourism industries, and possibly increased congestion on highways as workers drive to relocated jobs. He is urging further study before the plan is implemented.

Says Kelly, “The unintended economic consequences for the downtown economy would be far-reaching, economically devastating and not quickly or easily reversed.” (Left) Mark Kelly, President of River North Association

Kelly notes New York considered an $8 congestion fee before the plan was rejected by state lawmakers. A congestion fee in London, he says, is almost $16 per day.

“The proposed fee in Chicago would compound the current $4 per day in taxes paid by motorists using downtown garages, including a recent increase imposed within the past three months.”

Kelly says River North Association believes there are “far too many unanswered questions about the proposed congestion pricing ordinance for it to be adopted as it is currently written – especially given the current economic environment.”