KEENE, N.H. (MyKeeneNow) Downtown parking fees could be suspended for the remainder of the 2026 construction season under a recommendation advanced Wednesday by the Keene City Council’s Finance, Organization and Personnel Committee.

The committee voted to recommend that the full City Council authorize free parking in public downtown spaces for the remainder of the construction season, using the framework established by a resolution that allows parking fees to be suspended under special circumstances.

The recommendation will go before the full City Council for a final vote next week.

The proposal grew out of concerns from downtown business owners who say the nearly $30 million infrastructure project is discouraging some customers from coming downtown because of detours, lane closures, congestion and uncertainty about parking and access.

Businesses Say Construction is Taking a Toll

Warren Steinberg, owner of The Perch, initially asked the city to provide temporary free parking in areas directly affected by active construction. He later broadened his request to include the entire downtown, saying the project’s effects extend beyond the blocks where crews are working.

Steinberg told the committee that customers have said on social media that they are avoiding downtown because of the construction. He argued that a parking policy should move with the project rather than be changed one block at a time as construction progresses.

Other downtown merchants echoed those concerns.

Brandie Wells, who has operated her downtown retail business Shadow and Soul Emporium for nine years, said sales are already down and that the situation is affecting decisions about staffing and holiday inventory.

Wells said customers have told her they are avoiding downtown because of construction and that employees are also struggling to find parking amid changing closures and detours.

Roberta Mastrogiovanni, owner of The Corner News, said businesses are already facing higher utility, tax and operating costs and called free parking essential to helping them survive the construction period.

Free Parking Would Still Have Time Limits

Under the proposal, free parking would not mean unlimited parking.

Existing time limits, such as two-hour limits, would remain in place to encourage turnover. City parking staff said the city can continue to monitor parking through its existing systems, including ParkMobile and pay stations, even when the parking fee is set at zero.

Staff also said the city would use signage, its parking website and social media to communicate which spaces are free and what time limits apply.

The committee’s recommendation calls for the Parking Division to coordinate implementation, enforcement, signage and public communication.

City Estimates $45,000 Revenue Loss

Expanding free parking from the immediate construction area to the broader downtown would result in an estimated $45,000 in additional lost parking revenue for the remainder of the 2026 construction season, according to city staff.

The construction season is expected to continue into November.

Councilor Kris Roberts supported the recommendation but raised concerns about the longer-term financial implications. The city’s parking fund helps pay for downtown maintenance and operations, and reducing parking revenue over multiple construction seasons could require higher parking rates or other new revenue sources in the future.

Staff said the city has already begun examining possible ways to offset parking revenue losses, including changes to overnight parking and permit arrangements and potentially returning some permit-only spaces to public paid parking.

The committee also recommended that staff report back before any future requests for free parking are considered. That review would allow the city to examine the fiscal impact of the temporary suspension, gather feedback and determine what worked before deciding how to handle parking during later phases of construction.

Committee Favors Downtown-Wide Approach

The committee’s final recommendation expanded the original proposal from free parking only in the Phase 1 construction area to all public parking spaces within downtown for the remainder of the 2026 construction season.

Councilors described the move in part as an opportunity to test the approach, collect data and use the results to develop a longer-term parking strategy for the remaining construction phases.

The recommendation now moves to the full City Council, which is expected to consider the measure next week.