NASHVILLE, Tennessee (WTVF) – An investigation by NewsChannel 5 found Metro was not collecting what it should from valet operators – which could potentially cost taxpayers hundreds of thousands of dollars.
We found that Metro was not following its own law requiring valet operators to pay for “revenue earned” when a valet parking zone removed a parking meter.
But soon hotels and restaurants will pay more for the valet zones in the city center.
As we reported before the pandemic, hotels could easily replace city parking meters with private valet parking zones.
Valet operators can charge $ 40 or more per vehicle, but Metro only charges valet operators $ 50 a year to get a permit.
Councilor Freddie O’Connell realized it was time to update the $ 50 fee.
“We left some things unchecked for decades without indexing some of those fees for our growth,” said O’Connell.
“Lots of people have been with the $ 50 a year regime?
Our investigation found that the city was not following its own law as it never charged valet parking for the money the city lost from removing a parking meter.
We calculated that a city parking meter could fetch up to $ 6,000 annually.
For example, there were metered parking meters on 4th Avenue in 2016, but at least five of those parking meters were replaced with valet parking zones for three new boutique hotels.
In total, these meters could have grossed the city over $ 30,000 a year, but since these valet parking meters were removed, Metro only got $ 150.
We interviewed Diane Marshall with Metro Public Works, who oversaw valet parking in 2019.
She admitted that Metro never interpreted the law to require valet operators to pay for lost revenue when a meter is removed.
NewsChannel 5 Investigates asked, “Are you concerned that the city is leaving a lot of money on the table?”
Marshall replied, “From your interpretation, it appears that we are leaving money on the table.”
O’Connell chaired a committee that developed a new formula to charge more for valet parking permits, including lost revenue from parking meters.
According to the new Valet Fee Policy, a midtown hotel with two-place valet parking would pay more than $ 3,700 a year.
A seven-room downtown restaurant open from noon to midnight would now pay more than $ 19,000.
“Literally the value of every inch of curb on public rights of way has increased, and we haven’t got it. So in that sense, it’s a big deal,” said O’Connell.
It means more money will flow into Metro’s budget, funded mainly by the tourists flocking back to the city center.
O’Connell said hotels and restaurants asked that the fees not take effect immediately as they were still recovering from the pandemic.
The current plan calls for the new fees to take effect from July 2022.
