Chicago Parking Meters Privatized- Rates Will Quadruple

It's official: Chicago parking meters will be private, pricier
City Council approves deal 40-5

By Dan Mihalopoulos and Hal Dardick
December 5, 2008

City Hall could spend more than half of its $1.2 billion check within a few years, but a private company that agreed to pay that huge sum to lease Chicago's parking meters now will get to collect the cash for the next 75 years.

Although the 36,000 meters generate almost $20 million a year in net income—and rates are set to rise sharply next month—Mayor Richard Daley contends the city is better served in these tough economic times by taking the money upfront.

Under a deal approved Thursday by a 40-5 City Council vote, the cost to park at two-thirds of the meters in Chicago will quadruple next month. Neighborhood spots that cost a quarter an hour will cost $1 an hour and will increase to $2 an hour by 2013. The top meter rates in the Loop will go from $3 an hour to $6.50 within five years.

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http://www.chicagotribune.com/news/local/chi-parking-meter-05dec05,0,4162264.story


For City Hall, privatizing parking meters was all about money. The 75-year deal gives Chicago a $1.16 billion payment up front, generated largely by the private operator's ability to jack up parking prices. By 2013, the cost of parking at a meter in the Loop will more than double. The price at a meter in outlying neighborhoods will increase eight-fold.

The city expects to use $325 million of that windfall to cover budget deficits from 2009 until 2012, including $150 million for 2009. The city already plans to lay off 635 employees and cut back on major services; without this cash, the cuts could be worse.

Analysts frown on using one-time cash windfalls to cover operating expenses, and usually we would agree. But these are extraordinary times.

Our one major criticism of the city's parking meter privatization deal is that City Hall should have earmarked some of this money to the CTA, given that some drivers now will no doubt switch to public transportation.

The city might also have been wise to direct a portion of the funds to specific streets and business districts likely to be hardest hit by higher meter rates. Other municipalities that have raised parking rates, such as Redwood City, Calif., have funneled extra revenue to the affected business districts, to improve public services and amenities.

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http://www.suntimes.com/news/commentary/1317667,CST-EDT-edit07.article

In my opinion it demonstrates Daley's incompetence is managing the finances.

Privatizing the commons is Fascist.


Well - I guess more people will be taking mass transit now. That's the silver lining....

and will not get one more vote from me.