On June 2, 1956 an association of 28 East Franklin Street businesses and individuals opened a customer parking lot at Columbia and Rosemary streets at 25 cents an hour; the News called it Chapel Hill's first customer parking lot. In March 1958 the aldermen unanimously backed the planning board's long-studied plan for about 437 metered spaces downtown and voted five to one to put meter money in the general fund, while Alderman Roland Giduz wanted it kept to buy land for off-street parking. On July 14, after heated debate, they passed an ordinance for about 375 meters on Franklin, Columbia, Henderson and other business-district streets, with one-hour, two-hour and 12-minute limits; by August the plan covered 405 spaces and four firms had bid between $52 and $62 a meter. In July 1962 the aldermen agreed to buy the Hanson property on East Rosemary Street from the Chapel Hill Parking Association for $40,755 as a lot for about 30 cars, to be paid for with revenue bonds and meter profits, and the paper called it the town's first projected lot. Deeds recorded in late December 1963 moved three East Rosemary Street lots to the town, which began building a 70-car lot there in January. The metered lot opened on May 27, 1964 with room for about 66 cars, paid for by a $120,000 revenue bond issue to be repaid from meter receipts, and that August about 500 metered spaces in midtown were changed from angle to parallel parking. In May 1965 Dean of Men William G. Long announced zoned parking on the campus from September 1, with towing of cars parked out of zone, a doubled registration fee and no cars for undergraduates below a C average, saying 8,880 registered cars competed for 5,316 spaces. At the University's request the aldermen banned parking on South Road and part of Raleigh Street from the same date, and in September they let the police tow and impound improperly parked cars at the owner's expense. Street meter income later fell, from $21,358 in 1967-68 to $18,437 in 1971-72. On August 31, 1971 Hillsborough District Court found the manager of a Carrboro apartment complex and the owner of the wrecker service he called guilty, under the state 'joy riding' law, of taking a car without intent to steal, after they had a visitor's car towed from the complex's driveway; the two appealed in what was seen as a test of the common local practice of towing. On September 13, citing a critical parking shortage, the Chapel Hill aldermen voted in favor of adding a parking deck to the main municipal lot on Rosemary Street, which Town Manager Robert Peck said would probably be financed by revenue bonds.
On April 21, 1975 the aldermen created no-parking zones on 40 narrow streets, which police said would let buses and other traffic pass safely; warning tickets came first and towing began May 26. After residents petitioned the aldermen and the General Assembly passed enabling legislation for free resident permits, the board on July 11, 1977 barred parking from 9 a.m. to 4 p.m. on weekdays on all or part of 41 residential streets near the University. When the ban took effect on August 15, students and staff lost about 500 street spaces, and wreckers towed about 130 cars in the first week. On August 29 a UNC law student filed a class-action suit charging that the residents' permits made an unconstitutional special class, and that afternoon Superior Court Judge Henry A. McKinnon Jr. barred towing under the ordinance; police had towed 312 cars by then. On September 13 McKinnon forbade the town to grant the permits and lifted his order against towing, and from September 21 police treated cars on the restricted streets like cars at any other no-parking sign. On November 28, in a class-action suit by four Carrboro residents, three of them UNC students, Chief District Court Judge Stanley Peele barred Carrboro from enforcing its ordinance allowing cars to be towed from marked fire lanes on private property. On January 23, 1978 the Chapel Hill aldermen adopted a revised ordinance limiting permits to residents of streets closed to parking on both sides who had no off-street space and for whom building it would cost over $800 or harm a historic site.
An August 1979 rise in hourly charges at the town's lots, meant to discourage long-term parking downtown, later raised revenues at the two East Rosemary Street lots by a third. In late October the town opened a third lot, 66 spaces on West Franklin Street, built with a temporary loan before the parking bond vote; by January 1980 it was seldom more than half full. On November 6, 1979 voters defeated $2.6 million in bonds for downtown parking, chiefly a four-level deck on Rosemary Street, 2,969 to 2,439. The UNC trustees' 1980 traffic ordinance raised the fine for parking on campus without a permit from $10 to $20, and to $25 in handicapped spaces or fire lanes. In January 1981 the Town Council capped the evening fee in the Rosemary Street lots at $1 to encourage night use.
On March 3, 1982 ten students who had had cars towed at Foxcroft Apartments sued the complex's owner in Orange County Superior Court for a restraining order against further towing and more than $100,000 in damages. That month the council amended the town's towing ordinance so that an illegally parked car could be towed without notice and a chance for a hearing only in an emergency, with a prompt hearing before a police officer for any owner who was towed; deputy town attorney Grainger Barrett cited a federal appeals court ruling on due process raised by student government attorneys. On April 16 John Temple, vice chancellor for business and finance, told the Faculty Council that permits in lots near campus would rise from $6 to $8 a month, the first increase since 1974, and that the University could build no new lots because of debt on the hospital parking decks. On April 26 the council raised most downtown parking fines from $10 to $25, which town officials said would make up for court rulings that had limited towing. That summer, with the Foxcroft suit pending, the town barred towing from private property without police supervision and let owners appeal a tow.
On August 1, 1983 the town doubled the day rate in its lots to 50 cents an hour, hoping to discourage all-day parking, and prepared to seek private developers for a proposed four-level, 440-space deck on the Rosemary Street lot at Henderson Street. On October 24 the council unanimously approved a proposal for 250 spaces on Municipal Parking Lot 1, east of NCNB Plaza, after Council member Bev Kawalec amended it to give the town a say in the development's use. At a hearing on March 29, 1984 three developers proposed decks for the lot under at least 100 dwellings: Franklin Street Plaza Ltd. with Metro Consultants, Real Property Investments, and the Fraser Company, whose Rosemary Square, with a hotel-condominium, Mayor Joe Nassif praised. On April 20 the UNC trustees raised campus permit fees and N.C. Memorial Hospital deck rates, barred mopeds and other motor vehicles from campus sidewalks and reserved 700 spaces at the new Student Activities Center for the Rams Club on football Saturdays. On June 11 the council authorized negotiations with the Fraser Company. On June 22, reversing an earlier decision, the trustees let Rams Club members use about 175 spaces in the McCauley Street lot on football Saturdays, at associate athletic director Moyer Smith's request; Student Body President Paul Parker, a trustee, cast the only dissenting vote. On June 25 the council set aside $10,000 from the Parking Facilities Fund for legal and financial advice on the talks, money that went unspent, and by September 12 it had extended the negotiating period on Rosemary Square, a $16 million project with condominium hotel suites, public and private decks, shops and a plaza, and approved more money for consultants, which Town Manager David Taylor put at up to $40,000. On September 24 the company's president showed about 20 members of the Downtown Chapel Hill Association a plan with a 500-space deck and a fund to improve the alleys behind Franklin Street. On November 12 the council voted $1.4 million for land at West Franklin and Church streets for a 160-car lot, to replace the 114 spaces to be lost when the Rosemary Street lot closed for Rosemary Square, and set a vote on the Fraser contract, whose plan called for 325 public and 175 private spaces, for January 28.
On September 9, 1985, after disabled residents protested inadequate handicapped parking at a press conference at the Community Center, police Capt. Ralph Pendergraph announced $25 state citations and towing for cars parked in handicapped spaces. On October 28, at Mayor Joe Nassif's request, the council told Town Manager David Taylor to find ways to end on-site parking requirements for downtown businesses, and it raised what businesses paid into the parking fund from $2,500 to $7,200 a space. On January 21, 1986 the Carrboro aldermen let private landowners, in some cases, have cars towed that were parked on their property without permission. On April 14 the Chapel Hill council made parking violations civil rather than criminal offenses and raised the overtime meter fine from $1 to $5, with $5 more for each unpaid week in the first month and a $25 ceiling; council members said the change would discourage long-term parking downtown, much of it by students. That July campus meters went from 10 to 25 cents an hour and permits rose about $25, and on October 14 the Carrboro aldermen raised the fine for parking in a handicapped space from $5 to $50, on shopping-center lots as well as the street.
On December 12, 1986 the UNC trustees approved in principle a $12 million, 1,400-space parking deck on the Craige lot between Craige Residence Hall and Odum Village, to be paid off from the new spaces, special-event parking and higher permit prices for all. On February 9, 1987 a town limit of 48 hours on parking on any public street took effect; police said students who left cars all week on residential streets crowded out residents' visitors. On February 27 the trustees raised permit fees 10 to 25 percent, most for the gated and controlled-access lots on North Campus used mostly by faculty and employees. On April 15 Athletic Director John Swofford shelved a $450,000 plan to turn the eight Hinton James tennis courts into a 160-space lot for Rams Club members at Smith Center events, after student leaders protested that South Campus, home to half the dormitory residents, would lose its best courts; on October 21 a committee of students and administrators decided that the courts would not become parking for Smith Center donors.
On February 11, 1988, over the votes of its three student members present, UNC's Traffic and Parking Advisory Committee decided to turn two-thirds of the A lot near Cobb Residence Hall from resident student to employee and commuter parking. On February 19 Chancellor Christopher Fordham told the Faculty Council he would not send the trustees the deck, now a $12.2 million, 1,480-space plan, saying more work was needed and the state would not pay for it; the plan to pay for it with higher permit fees had angered faculty, staff and students. On February 24 employees and students protested permit prices and the shortage of spaces in front of South Building, after a petition asking for other ways to pay for a deck drew more than 3,000 University and hospital signatures. Two days later the trustees doubled the fines for permit and meter violations, raised permit prices about 10 percent and barred student permits for anyone living within two miles of campus instead of one and a half. On April 11 the Chapel Hill council extended the permit that let North Carolina Memorial Hospital employees park in the deck beside the hospital, on condition that the whole deck be reserved for patients and visitors by 1993, and it restricted weekday morning parking on part of McCauley Street, with permits for residents. On September 30 the advisory committee recommended that resident sophomores park in the P-3 lot on Airport Road with shuttle service instead of on campus in 1989-90, and Student Government, which had offered 13 counterproposals, started a petition drive. On March 23, 1989 the trustees raised permits $12 to $24 to cover about $228,000 a year of the $1.3 million needed annually to repay the $11.1 million, 1,600-space Craige deck. Chancellor Paul Hardin endorsed his ad hoc parking committee's revised report, and building the deck, the first of four in the land-use plan, could begin that summer.
Work on the Craige deck, put at $9.9 million and 1,640 spaces and financed by bonds to be repaid from parking fees and fines, was under way from October 1989 and set to finish in June 1991. By April 17, 1990 the Educational Foundation had abandoned a tentative plan for a 200-space deck on the Hinton James Residence Hall tennis courts, with new courts on its roof, for donors' parking near the Smith Center, after student leaders reported overwhelming opposition. The Craige deck opened beside Craige Residence Hall on September 3, 1991, about two months late because a large mass of rock had to be dug out of the site first; it added 1,643 spaces, about 600 of them for students, for South Campus residents and employees of the growing health sciences complex.
On February 19, 1991 the Carrboro aldermen voted unanimously to have their staff and the Downtown Development Commission recommend how to carry out a downtown parking study that cited students parking in town and private lots and a shortage of short-term spaces; Mayor Eleanor Kinnaird called it about the eighth parking study and urged the board to act. In March Chapel Hill posted no-parking signs on the dirt section of McCauley Street, removing about 30 spaces used by UNC commuters, after a resident complained and a review found an ordinance requiring one side kept clear. On September 10 the Town Council limited parking on the 300 block of McCauley Street, on the western edge of campus, to residents with permits from 8 a.m. to noon on weekdays, after residents complained that commuting students blocked their driveways; Council member Joe Herzenberg said the historic streets near campus lacked room for both residents and commuters and urged commuters to ride the bus.
On January 21, 1992 the council voted unanimously to send the town manager and attorney a proposed downtown transportation management plan that would end the requirement that downtown businesses provide private parking. On January 27 it approved an amnesty forgiving half the late penalties on parking tickets paid between February 15 and March 15, to recover part of about $500,000 in unpaid fines; enforcement had moved from the police to the transportation department. On March 23 the council amended its downtown parking ordinance so developers could submit a transportation management plan, with incentives such as free bus passes, bike racks, showers and carpool help, instead of providing parking or paying the town $7,200 for each space not provided; the developer of the proposed Pavilion on West Franklin Street said the change might let it go ahead. On May 11 the council voted unanimously to let police ticket cars parked on town sidewalks, a long habit of football fans and Sunday churchgoers, with tickets to begin on Sunday mornings in mid-August and at football games with the October 3 game against Navy; interim police chief Ralph Pendergraph said about 500 cars had parked on sidewalks at home games the year before. On August 24 the council unanimously amended its parking ordinance to drop the pre-towing hearing, allow towing of cars abandoned on town property and of cars with four or more unpaid tickets, raise the fine for parking in handicapped spaces to $50 under a new state law and cut some meter fines to $5. On September 15 the Carrboro aldermen raised parking fines, which had run from $1 to $5, to $25, effective immediately; Alderman Randy Marshall said collection agencies would not take unpaid fines under $25 and the higher fine brought Carrboro in line with Chapel Hill. At the Virginia game on October 17 Chapel Hill police gave about 70 football fans $25 tickets for parking on sidewalks, most of them on Rosemary Street, and the town pointed fans to Chapel Hill Transit's park-and-ride buses.