(Updated at 11:10 a.m.) A pair of Columbia Pike businesses say they’re planning to leave when their leases are up due to parking challenges at a county-financed garage.
Lost Dog Cafe and Joule Wellness Pharmacy both tell ARLnow that relatively high and confusing parking fees in the garage are costing them thousands of dollars a year in customer business. The owners of both say they will not be renewing their leases when they expire come 2023 and 2024, respectively.
“This parking issue has made it so untenable,” says Lost Dog Cafe franchise owner Jim Barnes. “We link this to our sales and our sales are not good. There’s a correlation with this parking lot.”
The parking garage, located at the corner of Columbia Pike and S. Walter Reed Drive, is owned by Ballston-based apartment developer AvalonBay. However, it was built based as part of an unusual 2006 agreement with Arlington County.
The county contributed $2.96 million to its construction with the promise of receiving 45% of parking revenue as a form of payback every month going forward, according to the “public parking development agreement” obtained by ARLnow.
It is one of only two parking garages in the county that has an agreement of this nature, county officials confirm, with the other also along Columbia Pike, at Penrose Square.
The agreement does not specify a duration for which the county will continue to receive the parking revenue and county officials declined to provide an “interpretation” of whether that could mean into perpetuity.
They also didn’t specify how much revenue the garage generated for the county in 2020.
The parking garage is owned by AvalonBay and was acquired by the company with its $102 million purchase of the since-renamed Avalon Columbia Pike apartment building — formerly the Halstead Arlington — in 2016.
While this agreement had been in place for a decade and a half, initially signed by a different developer, a majority of the issues for the businesses started in March 2020, just days before the pandemic began to hit Arlington.
That’s when, according to Lost Dog and Joule Wellness, the parking machines were turned on and enforced for the first time in years.
Lost Dog Cafe, a franchisee of the original in Westover, moved into 2920 Columbia Pike in May 2009. At the time, Barnes said that parking was free after 5 p.m. and on weekends, which he says was an adequate compromise. A large portion of their customer-base came when parking was free anyway, with the garage able to earn revenue at other times, he says.
When AvalonBay purchased the building, notes Barnes, those restrictions went away and the parking machines were turned off. Enforcement also stopped.
Then four years later, with little notice according to the businesses, the machines were turned back on, enforcement restarted, and parking fees were being charged 24/7. The machines require drivers to pay for parking in advance, and anyone who fails to do so — or who overstays the amount of time they paid for — gets ticketed or towed.
A sign outside the garage advertises a parking rate of $1.75 per hour, which can be paid via a cash-only machine inside the garage. Barnes claims the machine “has never worked” and “steals people’s money.”
Drivers can also use the ParkMobile app, but poor cell phone reception in the garage makes that difficult, and the app charges $2.25 for the first hour.
“Customers cannot use their phones to access it infuriating them and they simply choose to no longer come to our business as a result,” Barnes said.
Paid street parking is available nearby, but is limited. Parking on surrounding neighborhood streets, meanwhile, often requires a residential decal, and nearby parking lots are restricted to other businesses and their customers.
AvalonBay, in an email to ARLnow, disputes Barnes’ version of events, writing that parking was being collected prior to March 2020.
“Equipment had been in place and parking revenue was collected prior to March 2020,” writes a company representative. “In March 2020, an updated parking system was installed with the County’s approval.”
Barnes, however, says that he received “no notice whatsoever” about the change or any updates.
The management of Joule Wellness Pharmacy, which opened its Pike location in early 2014, said they did receive notice, but it was only two to three weeks prior to the change. What’s more, they said there’s no mention of paid parking in their lease.
“There was not no mention of that in our lease,” says manager Alex Tekie. “And in fact, we’re told parking is free for us and our employees and for customers coming on the retail side.”
Tekie and pharmacy owner Winnie Tewelde tell ARLnow they now shell out nearly $800 a month in parking, mostly so employees can park in the lot.
They’ve talked a lawyer about the situation, but grew weary of paying even more money to fight the parking changes against a large, publicly-traded developer.
“We got exhausted. Drained,” says Tekie. “It’s David vs. Goliath.”