They have it all back to front.
Livable vital cities are so, due to a complete lack of parking. Take Amsterdam, where residents wait years for parking permits, so long in fact that most simply don't bother. They buy pushbikes instead. There, whole streets are given over to walking and cycling, and cars putt along at the rear.
Copenhagen is not such an old city, having some sprawl and thus plenty of cars. However, thoughtful planners have made it more pedestrian and cycle friendly.
But even in the land of the free (America) where the car reigns supreme, places like Manhattan demonstrate the positive effect on neighbourhoods of letting many people live in an area with nowhere to park. I once lived in New York, for a short while, on the upper west side, in a typical 5 storey walkup apartment building, that completely filled up its land and left nowhere for parking. Most of Manhattan was developed that way, before cars were invented, and the result is a city brimming with people, and having surprisingly low per-capita crime rates, due in recent years as much to the presence of people as police, who are not on every corner as myth would suggest.
Postcard images of Wall Street and Midtown hide the truth of New York, that it is a city of neighborhoods. 90% of ones life can be lived within the space of 5 blocks, which is helpful, given few people own cars!
The old part of my city, and hundreds of cities like it that were planned in the late 1800s, is only a few blocks in size—the size roughly of one neighbourhood in some city like New York or Paris. What I have to say does not pertain to the sprawled out regions beyond my city's historic core:
Permit residential developments in the old city center that have no provision for parking.
From that, revitalization will follow. People will be here to patronize shops and events. Those people will ride bikes and make cars all slow down. Those people will put eyes on the street, making it safe, leading to more commerce, and in turn higher demand for all kinds of space. The cycle feeds into itself, but it all starts when people are allowed to live in the city with no place to park cars.