jjb1974
Mouseketeer
- Joined
- Apr 25, 2018
Parking is a gold mine for every event, as upkeep for surface lots is miniscule, property taxes are typically lower because there's nothing "improved" on the property like a building, and few people live within walking distance or where there is transport available (public transit options in lieu of parking at the event). It is truly the "soda at the movie theater" for special events, just so much profit so little recurring cost. It's toughest in an urban market where there is competition (park in this lot for $10, park in this lot for $20, etc), at its best when you're not in the urban market and you control everything (think of sports stadiums and the acres of parking surrounding them, with no other use for the land). Asphalt is cheap and doesn't have to be applied frequently, especially when you've got a lot of cars doing the hard work of sheltering said asphalt from the sun for you.
Disney has it even better than the typical example because a) they own all the lots, so every parking dollar is a dollar to them; b)lower property taxes as the lots aren't in a downtown or otherwise congested area where taxes would be higher; and c) they get to use them 365 days a year (even the most busy downtown parking lot has off days/weekends). Every dime they don't put into parking amenities is just pure profit. And if they can get a few people to pay preferred and not have the cost/upkeep of a tram and those pesky employees, well....just that much closer to paying off the debt on some other item in the portfolio.
Disney has it even better than the typical example because a) they own all the lots, so every parking dollar is a dollar to them; b)lower property taxes as the lots aren't in a downtown or otherwise congested area where taxes would be higher; and c) they get to use them 365 days a year (even the most busy downtown parking lot has off days/weekends). Every dime they don't put into parking amenities is just pure profit. And if they can get a few people to pay preferred and not have the cost/upkeep of a tram and those pesky employees, well....just that much closer to paying off the debt on some other item in the portfolio.