The University of Michigan plans to institute a one-year freeze on its parking permit rates, followed by three years of increases that range from 2.5 percent to 4.5 percent for the two highest-tier passes.
Permit fees are used to service debt for parking and transportation projects, such as the Wall Street Parking structure that's been approved by regents and will add 525 spaces to U-M's parking portfolio, and toward a $1 million-per-year contribution by U-M Parking & Transportation Services to support a $173 million renewal project of the school's unions and gyms.
A rendering of the structure approved for Wall Street.
University of Michigan rendering
For fiscal 2014, rates will stay at current levels, which are $1,577 annually for gold permits and $667 for blue permits, the two tiers of passes that allow drivers to park within walking distance of core areas of campus. By 2017 the cost will have increased to $1,774 for gold permits and $722 for blue permits.
For yellow and oranges passes —the two lowest-level permits that cost $153 and $76, respectively— costs will remain unchanged until 2017, when they'll rise 3 percent.
The university contributes $150 annually toward an employee's parking cost and plans to contribute $163 by 2017.
The changes will be voted on by the university's eight-member Board of Regents during a Thursday meeting at the Fairlane Center on the school's Dearborn campus.
In 2017 and the years that follow, the university wants to institute a 3 percent annual parking fee increase, according to a memo to regents signed by U-M Chief Financial Officer Timothy Slottow. Over the past three years parking rates have seen a 3 percent annual increase.
U-M's Ann Arbor campus has more than 23,000 parking spaces in structures and surface lots.
Gold permits allow employees to park on the lower floor of structures adjacent to the hospital. Those permits are in short supply and high demand. Only certain staff are eligible for a gold permit, and most who are must enter a lottery system to receive one. Blue permits also allow employees to park at nearby structures and lots. Yellow and orange permits are usually for remote lots and require parkers to bus onto core areas of campus, although some yellow parking lots are near campus buildings.
Rates for permits to city structures in Ann Arbor are $1,680 a year.
Source: University of Michigan
Correction: Rates for orange and yellow passes will rise 3 percent in 2017 and not 2013 as previously stated in this article.
Kellie Woodhouse covers higher education for AnnArbor.com. Reach her at kelliewoodhouse@annarbor.com or 734-623-4602 and follow her on twitter.