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Chicago's Private Parking Meter Bungle

Posted by: Nate Berg

22 November 2009 - 5:00am

Chicago's decision to privatize its parking meters seems to be a loss for the city, as new data shows the city could have made much more money in the long term had they maintained operational management.

"The parking meter company projects total revenues of more than $75 million and net income of about $58 million in 2010, after a second round of rate increases go into effect across the city on Jan. 1. In the first 10 ½ months of operation ending Dec. 31 of this year, the company expects $32.7 million in net operating profit, for a 70 percent profit margin.

Financial experts who reviewed the data say Chicago could have made out much better in the long run had it just kept the meters."

The city was paid $1.15 billion in February for a 75-year contract over most of the city's meters. The private company, Chicago Parking Meters LLC, is expected to continue to earn high amounts of net income over the course of the contract.

Full Story: Company Piles Up Profits From City's Parking Meter Deal
Source: The New York Times, November 20, 2009
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One great asset of this part of town, and other older neighborhoods across America, is something as simple as sidewalks, which make it easier to break out of your private sphere by taking a walk and talking to neighbors. That's an impossible dream in many new subdivisions.
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