Congestion charges reduced traffic, but stores and restaurants suffered.

Metro

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by nolan hix and Jack Morphett

Some shops and eateries in central London saw their revenue fall by 5% when the British capital introduced a congestion pricing programme. The Big Apple’s controversial $15-a-day pricing plan is modeled after this plan.

That percentage may not seem like a lot, but it’s devastating for Manhattan restaurant and store owners, given their already dangerously low profit margins due to the coronavirus. He said it would be.

“No one’s there on Mondays or Fridays,” said Brian Owen, who owns three restaurants in Midtown and one on the Upper West Side. “[Five percent] It doesn’t seem like much…but we have a very thin margin. ”

London’s alarming drop in business comes as traffic congestion in paid zones, which include the city’s famous theater district and eateries, fell by much more than expected, by nearly 30%, almost overnight. is.

The drastic drop in traffic may have pleased proponents, but it came at a cost to businesses with a shrinking customer base and ultimately forced officials to shorten the program’s time.

Manhattan restaurant and shop owners say London’s early experience is alarming as they prepare for the MTA’s planned launch of its congestion pricing plan in mid-June.

“6 years ago, [congestion pricing] “It may have been a great idea when the economy was growing and prospering, but now could be the worst possible time,” Owen said.

“This will ultimately reduce the amount.” [traffic]This is less people, less business, and the opposite of what we need for recovery right now. ”

Elesha Burke, owner of Tito Murphy’s Mexican restaurant in the Theater District, agreed that congestion pricing “would have a huge impact on customers.”

“Our customers are pre- and post-theatre. If they were charged an entrance fee into the city on top of theater tickets and parking, they probably wouldn’t even come to eat and would go straight home.” said Burke.

According to the Metropolitan Transportation Authority’s plan, Manhattan drivers entering the Big Apple south of 60th Street or exiting the FDR Expressway or West Side Highway onto local thoroughfares and streets will have to A fee will be charged once per day.

Murphy Fitzpatrick of Birdo, another theater-dependent eatery, said most restaurants would struggle to survive even a 5% hit.

“Margins are getting thinner,” Fitzpatrick said. “it is [a] Huge” cut.

The toll for Britons is now £15, or nearly $19.

London charges initially applied to vehicles entering or traveling into the zone between 7am and 6.30pm on weekdays, but will now end at 6pm. The fee previously did not apply to holidays or weekends, but has since been expanded. From noon to 6 p.m. on weekends and some public holidays.

London authorities also shortened weekday business hours by 30 minutes and ended toll collection at 6 p.m., in a bid to give local shops and restaurants a boost in the evening hours when the curtain rises on neighborhood shows.

There are three major differences in the New York program.

• The MTA’s proposal would charge the base rate over an extended period of time, from 5 a.m. to 9 p.m. on weekdays and from 9 a.m. to 9 p.m. on weekends.
• After-hours access is not free, but you will receive a 75 percent discount. So the toll for a passenger car would be $3.75.
• If you live in a toll zone in Manhattan, you won’t be charged unless you drive out of the zone and re-enter.

Additionally, people who live in the zone and earn less than $60,000 a year can have their charges refunded against their income taxes. Drivers who use the East or Hudson River tunnels during peak hours will also receive a $5 discount to offset the new cost.

Taxis and rental cars are exempt, but customers must pay a fee on top of the fare.

MTA officials predict the toll will reduce traffic within Manhattan toll zones by up to 17%.

In London, initial projections suggested a 10-15% reduction in traffic within toll zones, according to press clippings from the time. In fact, the reduction in traffic meant his target was doubled, and newspaper articles from the beginning of the operation include quotes from Londoners who were awestruck by the quiet and the chirping of birds.

Businesses in the area, especially shops and restaurants, were less vocal during the first few months as they loudly complained that the toll was hurting their operations.

John Lewis, university researchers commissioned by the area’s major department stores, found that the levy reduced revenue by at least 5%, and the findings were compared to the area’s famous Oxford・This suggests that businesses on the street are also suffering similar losses.

This decline continued even as the percentage of same-store shoppers using transit rose from 78% to 84%.

London’s transport authorities countered that a larger economic slowdown over time may have fueled the drop.

As for New York City, the plan is facing a lawsuit filed by New Jersey politicians, labor unions, and residents in and around the rate zone. They argue that the environmental effects weren’t studied enough for the federal government to give approval.

Advocates dismiss that argument, pointing to the nearly 4,000-page review, which says the toll will ultimately end Manhattan’s devastating congestion while funding needed transportation improvements. It is claimed that it will be done.

The MTA recently announced an extensive list of fee-funded programs. These include: Purchase enough new subway cars for 43 more modern trains on the Letter Line. He also made 28 subway stations wheelchair accessible, removed 100-year-old traffic lights along the Fulton Street and Sixth Avenue lines, and installed new, more reliable computerized systems.

In response to a Post question about London’s experience with congestion pricing, MTA officials said a 2008 study commissioned by the U.S. government found that economic growth in congestion zones was driven by significant reductions in traffic. He pointed out the conclusion.

“Having customers, workers and delivery trucks stuck in Manhattan traffic is bad for business,” said John McCarthy, the MTA’s director of policy. “Once this program launches, we will be tracking the numbers and collecting data to ensure the local economy continues to grow, and we will be monitoring this closely with small businesses.”

Additional reporting by Griffin Eckstein