Dewey to explore financial impacts of parking changes

Reducing free parking nights and lengthening the paid parking season are being considered in Dewey, as commissioners voted Oct. 20 to request the budget and finance committee evaluate their financial impacts on the town budget.

For years, the town has allowed free parking from 5 to 11 p.m., Monday through Wednesday during the paid parking season, which is traditionally May 15 to Sept. 15. 

Before commissioner discussion, several members of the public spoke up to encourage town leaders maintain free parking nights.

Rehoboth Beach-Dewey Beach Chamber of Commerce President/CEO Carol Everhart said the chamber hosts Monday movies on the beach and beach bonfires Wednesday evenings that attract families to town.

This summer, she said, the chamber incurred nearly $10,000 in expenses and salaries providing the events, and donations and sponsors contribute about $6,000. 

Everhart said she understands the town needs money. But, she said, she wonders if people will still attend the events if they have to pay to park, and if sponsors will continue funding them if fewer people participate.

Rehoboth Beach-Dewey Beach Chamber of Commerce Board Chair Vince DiFonzo, who is also president of TKo Hospitality, which manages Hyatt Place Dewey Beach, said family events are good for the town. Costs are up, he said, and he cautioned commissioners about doing anything that would deter business. 

Dewey Business Partnership president and The Starboard owner Steve “Monty” Montgomery said he hears a lot of talk that businesses don’t pay their fair share in helping the town, but on the other hand, property owners don’t pay property taxes.

Montgomery said he helped establish free parking nights when Dewey was viewed as a bar town only. Now, he said, the town has become well-rounded thanks to family-friendly events. It’s free to park in permit parking areas in Rehoboth every day after 5 p.m., he added.

Regarding changing the length of the season, Montgomery said there are always issues with troublemakers coming to town in early May. Some assume they come then because of free parking, Montgomery said, but he is hopeful with a new chief, this won’t be an issue going forward. He said he would like the end of the season to remain Sept. 15, as everyone looks forward to the time when rules are relaxed.

The town should consider eliminating free parking when holidays fall on a Monday, Tuesday or Wednesday in season, Montgomery said, noting his restaurants remove daily specials when they fall on holidays. 

It may be a little confusing, he said, but he guarantees people were trying to pay the meters on July 4, which was a Tuesday. Half the revenue could go to infrastructure and the other half to public safety, he suggested.

Jason Wilson, Alley Oop Skim owner and Summer Vibes Fest founder, said he is on the beach many evenings working with kids. Free parking brings lots of people to the beach, he said, including folks who live in Rehoboth and Lewes, which is a positive step in the culture of the town.

Former Commissioner David Moskowitz spoke via Zoom to suggest a compromise. Monday and Wednesday nights could still be free parking unless they are holidays, he said, and the town could charge for parking on Tuesday nights. The paid parking season could begin May 1 and end Sept. 15, he said. Paid parking begins at 10 a.m., so maybe change it to 9 a.m., he said, as plenty of people are on the beach that early.

Town Manager Bill Zolper said bonfires and movies are great for the town, but he estimated the town is losing close to $500,000 each summer by having three free parking nights a week. 

The town has been very pro-business, Zolper said, noting that all outside dining area requests were approved and the number of parking spots restaurants are required to provide has been decreased.

A lot of money is being left on the table, Zolper said, noting that DiFonzo is correct in saying that costs are up. Running the town costs money, he said. The town is not trying to make a profit, he said, and is having a hard time breaking even. Funds could be used for lifeguard salaries, public safety and a donation to the Rehoboth Beach Volunteer Fire Company, he said.

Commissioner Elisabeth Gibbings said she favored charging for parking on holidays.

“We were to the gills here on July 3 and July 4 because it made for a long weekend, and that’s a lot of lost revenue,” she said.

Commissioner Gary Persinger said that could be a reasonable compromise, but he prefers not making any changes to parking season, as a sense of relief is in the air when Sept. 15 comes around. 

Persinger said he does favor sending the issue to the budget and finance committee for review, but he questioned whether the town is losing as much revenue as Zolper stated. There’s no way to ballpark how much revenue is being missed from 9 to 10 a.m., he said.

Commissioner Paul Bauer said he wants to support businesses, but the town also needs to raise funds. Historically, he said, the town sees troublemakers in early May, so a compromise may be a good idea, but he prefers ending the season Sept. 15, as it is ingrained in the public. By targeting at least $150,000 in revenue, he said, the town could prioritize public safety, which impacts property values.

Mayor Bill Stevens said he agreed starting the season May 1 would not be an issue, while changing the ending date later than Sept. 15 would be. The town has been very business-friendly, he said, but other towns are earning money on Dewey’s free parking evenings.

Gibbings’ motion to have the budget and finance committee evaluate financial impacts of moving the daily paid parking start time to 9 a.m., eliminating free parking nights and extending the season from May 1 to Sept. 30 passed unanimously.

A budget and finance committee meeting has been scheduled for 4:30 p.m., Tuesday, Nov. 14. An agenda has not yet been posted; go to townofdeweybeach.com.