Several Provisions on Encouraging Social Entities to Invest in the Construction of Public Parking Facilities

To further improve the urban environment, encourage and guide social entities to actively participate in the investment and construction of public parking facilities, and effectively alleviate the city’s parking shortage, these Regulations are hereby formulated in accordance with the “Implementation Opinions on the Planning, Construction, and Management of Parking Facilities within the Urban Planning Area of Xuancheng City,” taking into account the specific conditions of our city.
　　I. Guiding Principles
　　In accordance with the principles of unified planning, policy support, market‑based operations, independent management, and the “investor‑benefits‑from‑investment” approach, a market‑oriented operational mechanism integrating investment, construction, operation, and management will be established, thereby accelerating the development of an industrialized parking‑lot sector characterized by multi‑channel construction, diversified investment, and large‑scale operations.
　　II. Scope of Application
　　(1) These Provisions apply to the construction and management of public parking facilities (including public parking garages and multi‑storey parking structures, hereinafter referred to as “public parking facilities”) invested in and built by social entities within the urban planning area of this municipality, including all economic and technological development zones.
　　For the purposes of these Regulations, “public parking facilities” refer to commercially operated parking lots that are open to the public and meet the parking needs of the general public, excluding parking facilities provided as part of public buildings such as shopping malls and hotels, as well as those constructed in residential areas in accordance with applicable regulations.
　　(2) For the purposes of these Regulations, “social forces” refers to state-owned enterprises, collectively owned enterprises, private enterprises, non-governmental organizations, and other entities within the territory that invest in public parking facilities (garages) using non‑fiscal funds.
　　III. Construction Approach
　　Encourage social entities to actively attract investment through various channels to construct, renovate, and expand public parking facilities of all types. These include:
　　(1) Various public parking facilities specifically designed to provide parking services, constructed at sites selected in accordance with planning requirements;
　　(2) Public parking facilities open to the public that are constructed in excess of the prescribed ratio, including those co‑located with commercial or office buildings;
　　(3) Expand, upgrade, and renovate existing public parking facilities;
　　(4) Utilizing government‑reserved land to construct temporary public parking lots;
　　(5) For undeveloped land parcels, subject to compliance with the overall land-use plan, conduct localized planning adjustments to construct public parking facilities.
　　(6) Construct public parking facilities in the underground spaces of parks, plazas, green spaces, roads, and school playgrounds, as well as in civil defense underground structures.
　　(7) Utilize the proprietary land of Party and government organs, as well as enterprises and public institutions such as schools, hospitals, and shopping malls, for the renovation or expansion of public parking facilities;
　　(8) Subject to compliance with the overall land-use plan and the urban master plan, temporary public parking facilities may be constructed on collectively-owned construction land.
　　IV. Operating Model
　　Encourage social capital to participate in the construction and operation of public parking facilities through various approaches. For eligible public parking projects, on the basis of unified planning and layout and a clearly defined construction plan, the project‑responsible entity shall, in accordance with the law, select an investor and operator through open tendering. Where investment is attracted via investment promotion, the relevant provisions governing such initiatives shall apply. Furthermore, land owned by administrative agencies, enterprises, and public institutions—including underground space—may be leased or developed under cooperative operating arrangements to attract private capital for the construction of public parking facilities.
　　The government provides policy incentives—such as favorable land allocation, reduced administrative fees, and tax breaks—for the development of public parking facilities. Investors are responsible for lawful construction and operational management, bearing full responsibility for profits and losses.
　　V. Policies and Measures
　　(1) Land Use Policy
　　1. All newly constructed public parking facilities shall be subject to unified planning by the planning authorities. If the land used complies with the “Catalogue of Land Allocated for Specific Purposes,” the land shall be allocated by the land and resources authorities as designated parking‑lot construction land, with the investor obtaining construction and operating rights through a tendering process. For land not included in the Catalogue, the right to use the land may be acquired through the public auction, bidding, or listing system.
　　2. The use of underground space is encouraged. For projects that have already obtained land-use rights and require the construction of new underground public parking facilities, those that meet the criteria set forth in the “Catalogue of Allocated Land” shall continue to be supplied through the allocation method; for those that do not meet such criteria, the land premium for underground public parking facilities shall be waived.
　　(II) Fiscal Incentive and Support Policies
　　1. For newly constructed public parking lots (garages) and parking facilities provided as part of urban construction projects, a one-time subsidy equal to 20% of the construction cost shall be granted, upon successful completion and acceptance, for any excess parking spaces that are open to the public.
　　2. Starting from the date on which the public parking lot project commences operations and pays taxes, the benefiting fiscal authority shall adopt a “collect first, then reward” approach to grant investors incentives—on the local share of business tax and corporate income tax—according to the following criteria:
　　(1) For projects with a construction scale of 150 to 300 berths, a subsidy of 50% will be granted in the first year, 40% in the second year, and so on, decreasing by 10% annually.
　　(2) For projects with a construction scale of 300 berths or more, a reward of 50% will be granted in the first through third years, and 40% in the fourth year; thereafter, the annual reward rate will decrease by 10% each year, starting from the fourth year.
　　(3) For underground public parking facilities that are not accompanied by commercial space, the provisions of paragraph (2) shall apply by analogy.
　　(III) Commercial Development Policy
　　To encourage social investment and balance project financing, for newly constructed public parking facilities with 200 or more parking spaces, a certain proportion of commercial space may be allocated to the project, subject to comprehensive assessment based on land use type, planning requirements, investment scale, implementation complexity, and other relevant factors. In principle, no more than 100 square meters of commercial space shall be provided for every 100 parking spaces. The specific allocation for each project shall be approved by the planning authority and clearly stipulated in the planning and design conditions.
　　Public parking lot construction projects that comply with advertising‑placement plans and standards may install advertising spaces, and the revenue generated therefrom may be treated as part of the parking lot’s operating income.
　　(4) Operating Rights Policy
　　For publicly funded parking facilities newly constructed with investment from social entities, the term of the operating rights shall generally not exceed 20 years. For underground public parking facilities (including ancillary commercial spaces) with fewer than 200 parking spaces, the term of the operating rights shall generally not exceed 20 years. For newly built above-ground mechanical multi‑storey parking structures (towers), the operating period shall generally not exceed 30 years. For large underground public parking facilities with 200 or more parking spaces that are intended for long-term operation, the term of the operating rights shall be capped at 30 years.
　　Where public parking facilities are developed on land owned by administrative agencies, enterprises, and public institutions through social investment, cooperative operation, or other means, the term of operation shall be agreed upon by both parties and, in principle, shall not exceed 30 years.
　　Upon expiration of the operating rights for the public parking facility (including its ancillary commercial spaces), it shall be transferred to the government free of charge.
　　(5) Property Rights Policy
　　After approval by the planning authorities, ground‑level and underground public parking facilities constructed through open land‑sale procedures, as well as underground public parking facilities built on a unit’s own land with the consent of the planning authorities, may be registered for property ownership certificates provided their floor-to-ceiling height is 2.2 meters or more (excluding civil defense facilities). The corresponding underground space use rights shall have their land‑use procedures completed by the land and resources department in accordance with relevant regulations. Furthermore, publicly accessible parking facilities converted from abandoned factory buildings or similar structures may be traded.
　　(6) Fee Reduction and Exemption Policies
　　For public parking projects, the urban infrastructure配套 fee is implemented on a “collect first, reimburse later” basis, and the off-site civil defense construction fee is deferred. Charges for commercial services provided by public institutions are levied at 50% of the standard rate.
　　(7) Parking Fee Policy
　　Public parking lots shall adopt pricing mechanisms—including market‑determined prices, government‑guided prices, and government‑set prices—based on the principle of “who invests, who benefits; who manages, who benefits.” Prior to implementing any charges, the investing operator must complete the requisite procedures with the price‑regulating authority, display clearly marked prices in accordance with national pricing policies, and use invoices issued under the supervision of the local tax authorities.
　　(8) Operational Support Policies
　　Public security traffic management authorities and urban management departments must intensify enforcement against illegal parking, ensuring strict compliance with the law to maintain orderly parking in urban areas. For newly constructed public parking facilities, subject to meeting parking demand, road-side parking spaces shall, in principle, not be permitted within a specified distance of the entrance or exit. The Municipal Urban Management Bureau, in coordination with the Municipal Public Security Traffic Management Department, the Housing and Urban–Rural Development Department, and other relevant agencies, shall promptly establish an intelligent parking guidance system and a parking information service platform for the urban area, thereby encouraging rational vehicle parking and enhancing the utilization and turnover rates of parking spaces.
　　VI. Safeguard Measures
　　(1) Streamline approval procedures
　　Simplify approval procedures, streamline approval services, and enhance approval efficiency for urban public parking projects to accelerate their planning and construction.
　　(II) Strengthen Supervision and Inspection
　　Upon completion, public parking facilities may not be repurposed without lawful approval. The municipal urban management authority, the traffic management department of the public security organ, and the planning department shall strengthen oversight through routine patrols and monthly inspections. Any unauthorized closure of a public parking facility or any alteration of its designated use shall be subject to an order issued by the Municipal Urban Management Bureau, in coordination with relevant agencies, requiring rectification within a specified time limit. Failure to comply within the prescribed period shall result in enforcement action in accordance with the law. Where the planning authority verifies that the number of parking spaces originally designed has been unilaterally reduced, the Municipal Urban Management Bureau shall, pursuant to law, require the developer to undertake corrective measures and make up the shortfall, with support and cooperation from the relevant municipal departments.