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SkyPark, troubled private parking facility near SFO, to close Jan. 31

SkyPark, troubled private parking facility near SFO, to close Jan. 31

Old Jan 22, 20, 11:03 pm
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Post SkyPark, troubled private parking facility near SFO, to close Jan. 31

SkyPark, a large privately operated parking facility with nearly 1,800 spaces near San Francisco International Airport, is going out of business at the end of the month, citing “the cost of the lease” as the cause.

The city of San Bruno, however, says SkyPark is eleven months delinquent on “remitting the 8% airport parking tax, a tax they collect from (customers) and are supposed to remit to the city” said Jovan Grogan, San Bruno’s city manager.
https://www.sfchronicle.com/business...-sfgate-result
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Old Jan 23, 20, 12:23 am
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This is totally BS...

1. If Uber/Lyft is the cause of business decline, it would affect SFO own Long-Term parking as well. Yet, SFO and other private long-term parking decided to expand as well.

2. Why should I use private long-term parking when the airport itself is charging me the same rate?
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Old Jan 23, 20, 10:28 am
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I just looked and SFO airport parking is $18 a day in the long term lot, the same that SkyPark charges. Burligame Airport Parking, where I park, is $9 a day this time of year. No indication in the article what percentage their lease is going up to cause them to cease business, but clearly they're not in position to raise rates to $20-25 per day to cover increased operating costs, aside from maybe holiday weekends. Sounds like it's a wise decision to close rather than increase rates to the point their lot will be empty outside holiday weekends.

They're not the first big lot to close. About a dozen years ago there was a big lot I used in San Bruno, near a big Post Office complex, and they shut down because the Post Office wanted their land back. Think that one was called Park, Shuttle and Fly.
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Old Jan 23, 20, 10:30 am
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Originally Posted by garykung View Post
Why should I use private long-term parking when the airport itself is charging me the same rate?
1. valet parking service
2. free parking day for every five consecutive paid days; "parking club" points for even more free days
3. guaranteed spot during peak holiday travel (by reservation)
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Old Jan 23, 20, 12:34 pm
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Originally Posted by higher_flyer View Post
3. guaranteed spot during peak holiday travel (by reservation)
This I have to pause.

Sure - I had been turned away by SFO Long Term Parking before. But the turn away turned out as an advantage to me, as the Long Term Parking assigned to back to Terminal Parking with the same rate.

So a guaranteed spot may not seem that important.
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Old Jan 23, 20, 4:19 pm
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Used them for nearly all of the 30 years they were in business and hold literally a couple hundred "loyalty points". I feel now totally rip-off by them as I only just heard about the closing yesterday. Called and you cannot use the points at OAK SkyPark which seems crazy. They gave me some vague statement that Park and Fly may honor them but I would "have to work that out with them". Thanks SkyPark for in the end sticking it to your long term customers!!
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Old Jan 24, 20, 3:41 am
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Originally Posted by nomad420 View Post
Used them for nearly all of the 30 years they were in business and hold literally a couple hundred "loyalty points". I feel now totally rip-off by them as I only just heard about the closing yesterday. Called and you cannot use the points at OAK SkyPark which seems crazy. They gave me some vague statement that Park and Fly may honor them but I would "have to work that out with them". Thanks SkyPark for in the end sticking it to your long term customers!!
Not too surprising though -- sounds like they are in financial difficulty; a clue would be their failure to pay over the sales tax (which they already collected from customers) to the city of San Bruno.
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Old Jan 24, 20, 9:25 am
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Originally Posted by KathyWdrf View Post
Not too surprising though -- sounds like they are in financial difficulty; a clue would be their failure to pay over the sales tax (which they already collected from customers) to the city of San Bruno.
I was obviously not aware of their failure to pay taxes to San Bruno but yeah that was a "red flag" for sure. I don't get why we can't use our points at SkyPark OAK, is that an entirely different company? Did they just license the name to them? You well get little to no help calling them, just fyi.
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Old Jan 25, 20, 4:55 pm
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I have had the privilege of getting to know the owner as a friend (I run an online company that deals with the airport parking space). She took over the business that was started by her father some 30+ years back. He started the business to give business travelers peace of mind and some perks when traveling (more frequent shuttles than the airport, free waters, coffee, donuts and newspapers), but also he was able to beat the airport's prices. Over the years, as Bay Area housing and apartment prices have raised, so have leases near the airport making them equally exorbitant. If they were only able to purchase the property as some point, like others in this space do, they'd be sitting very pretty. As for SkyPark OAK, there are probably other partners in the deal and its own books. I wouldn't be surprised if a call to PNF would end up in the taking your points @nomad420.
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Old Jan 25, 20, 5:50 pm
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Originally Posted by pmm621 View Post
Over the years, as Bay Area housing and apartment prices have raised, so have leases near the airport making them equally exorbitant.
That I understand. But how come the owed tax?
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Old Jan 25, 20, 8:29 pm
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Originally Posted by garykung View Post
That I understand. But how come the owed tax?
That I don’t know?
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Old Jan 26, 20, 11:00 am
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Originally Posted by pmm621 View Post
I have had the privilege of getting to know the owner as a friend (I run an online company that deals with the airport parking space). She took over the business that was started by her father some 30+ years back. He started the business to give business travelers peace of mind and some perks when traveling (more frequent shuttles than the airport, free waters, coffee, donuts and newspapers), but also he was able to beat the airport's prices. Over the years, as Bay Area housing and apartment prices have raised, so have leases near the airport making them equally exorbitant. If they were only able to purchase the property as some point, like others in this space do, they'd be sitting very pretty. As for SkyPark OAK, there are probably other partners in the deal and its own books. I wouldn't be surprised if a call to PNF would end up in the taking your points @nomad420.
I honestly feel sorry for them and have known of many other Bay Area business caught in this or similar horrible situations that were forced to close. Some where even owned by my own family members. I started parking at SkyPark decades back for just the reasons you stated. I guess my only beef is they could have announced this earlier and allowed people to use up their "loyalty points" . Heck I just parked there several times over the holidays and would used my points for parking and car servicing/cleaning. My business partner said she got an email months back stating something about the points expiring, perhaps that was suppose to be some kind of warning but I honestly didn't recall getting the email. I certainly will miss SkyPark fwiw.
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Old Jan 26, 20, 11:14 am
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Originally Posted by garykung View Post
That I understand. But how come the owed tax?
I can only imagine that they've experienced a serious cash crunch. And when that occurs, you've got to make priorities with how you spend your limited dough (short of liquidating or reorganizing).

I would expect that the City parking tax is not a trust fund tax. This means that although the patrons pay it, the tax is assessed on the entity, not the customer. This further means that the ultimate repercussions of not "turning it over" aren't as bad. (Note that California sales tax also isn't a trust fund tax. The employee's share of payroll tax is a trust fund tax, i.e., it is the employee's money, held in trust by the employer, for deposit to the taxing and other authorities.) I don't know what sort of responsible officer liability this City's parking tax would have, and at what point, after failure for the entity to pay.

So, during the cash crunch, obviously the "lights need to stay on" (i.e., actual lights, vans operating and insured) and the employees need to be paid. As described above, the employee's share of withholding are trust fund taxes and the employer can't ever get rid of them, i.e., never dischargeable in bankruptcy, and once not paid by the entity for a certain amount of time, will hit the responsible officers. The other state and federal taxes after failure to pay will also hit the responsible officers, but will eventually be potentially dischargeable in bankruptcy, and much more subject to some sort of compromise. The City coming after you individually for failure to submit the parking tax is pretty low on the emergency priority scheme.

Without seeing the books, none of us can really know what transpired. But I'd be surprised if the entity hasn't consulted with attorneys, and who and how much is being paid is being done after having received advice.
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