Galveston loses $300K on controversial seawall parking program

Beachgoers now have to pay $1 an hour or $8 for the day to park on the seawall in Galveston. Beachgoers now have to pay $1 an hour or $8 for the day to park on the seawall in Galveston. Photo: Mayra Beltran, Houston Chronicle Photo: Mayra Beltran, Houston Chronicle Image 1 of / 14 Caption Close Galveston loses $300K on controversial seawall parking program 1 / 14 Back to Gallery

Galveston officials told people it would be a good idea to make money by charging for parking on the seawall, but it turns out the project could actually cost islanders more than $300,000.

City officials have released figures showing that in the six months from its launch in August, revenue from the project where drivers have to pay online or via a smartphone app totaled just $200,000.

They report that operating costs for six months run to $550,000. It doesn't take a mathematician to figure out that means a massive shortfall for taxpayers to make up.

But officials maintain it's too early to judge the program and they will make more than enough to cover costs through next year.

"The numbers reflect a very small portion of our busy season," said Assistant City Manager Brian Maxwell.

Officials argue that by starting in August they already missed their prime market when cooler weather and city festivals brings more beachgoers.

"The city remains cautiously optimistic that a complete calendar year will depict a more accurate and favorable picture of the effectiveness of the program." Maxwell said.

Voters approved paid parking in a 2011 referendum with the promise that the loss of free parking would come with the benefit of funds to pay for services like beach bathrooms and showers.

Businesses objected and said paid parking would deter customers.

Planners had estimated the project would earn $1.55 million, which would cover $1.16 million in operating costs and leave $390,000 to spend on the seawall.