Chicago Privatizes Parking

For $1.16 billion, Chicago Parking Meters LLC, has won the rights to manage Chicago's parking meters. This is one step the city has taken to ease budget shortfalls.

"Final approval of the deal, which will be decided by a city council vote on Thursday, would establish the first private concession for a publicly owned U.S. parking system, according to Mayor Richard M. Daley. Similar deals over the past three years have seen Chicago pocket nearly $5 billion from leasing the Chicago Skyway, downtown parking garages and Midway Airport.

Mr. Daley said at a news conference that the fresh funds, to be paid up front for a 75-year concession, will help the city avoid seeking federal government help to balance its budget. 'We're creatively working to protect our taxpayers for years to come,' he said at a news conference Tuesday."

"Net income from Chicago's roughly 36,000 parking meters totaled $18.9 million in 2007, according to the city. For more than two-thirds of the city's meters, the current per-hour rate is 25 cents. By next year, that rate will soar to $1, the first price increase at those meters in more than 20 years, the city said. The rate will gradually increase for five years, to become on par with the rates of other cities. Afterward, rates are expected to increase with inflation and must be approved by the city council."

Full Story: Chicago Banks on Private Parking

Comments

Comments

Selling the City and Its Soul

Rather than face up to the obscenely high cost of running a patronage-based government (pin-stripe and traditional patronage), Mayor Daley continues to sell off the city's leaseable assets. Where will it stop? How long can this short-sighted irresponsibility continue? This is the same sort of behavior that collapsed the financial industry.

And the lock-step manner in which the City Council goes along with each of Mayor Daley's schemes is astounding. Why have any aldermen when they just do whatever he says? Hopefully this is not the sort of "democracy" we're trying to export to the rest of the world.

Daniel Lauber, AICP
Planner/Attorney
AICP President 2003-2005, 1992-1994
APA President 1985-1986
http://planningcommunications.com

""Net income from Chicago's

""Net income from Chicago's roughly 36,000 parking meters totaled $18.9 million in 2007, according to the city. For more than two-thirds of the city's meters, the current per-hour rate is 25 cents. By next year, that rate will soar to $1, the first price increase at those meters in more than 20 years, the city said."

I'm really disappointed to see this increase from 25 cents to $1, I think this is just too much.
I understand that this will benefit the city as a whole, but that is the wrong way to raise money.

-JenCANN

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