Chicago’s parking meters have been sold to a new private ownership following a long-standing controversial agreement from 2008. Mayor Brandon Johnson confirmed that the meters are now under the control of an undisclosed company, reportedly for at least twice the price at which they were initially sold 15 years ago.
Background on Chicago’s Parking Meter Deal
The original transaction, executed by then-Mayor Richard M. Daley, involved a 75-year lease with a private company for $1.15 billion. This deal has drawn criticism over the years for being detrimental to the city and its residents.
- Sale price in 2008: $1.15 billion
- Cost at the meter: $7 per hour (previously $3)
- Duration of the original contract: 75 years
Financial Impact of the Recent Sale
Alderman Scott Waguespack commented on the financial return of the previous owners, who reportedly made about $2 billion in revenues in just over a year. This substantial profit indicates a lucrative business model that made the parking meters an attractive asset for investors.
Mayor Johnson’s administration had explored the option of repurchasing the meters. However, the potential cost and associated risks proved significant.
Risks of Repurchasing Parking Meters
In considering the buyback, Johnson pointed out the financial burden it could impose on the city. If purchased, all parking revenues would go towards debt repayment, limiting the ability to lower rates or even reduce the number of metered spots.
“If parking habits change and revenues drop significantly, the city would still be responsible for all debt payments,” Johnson explained. This scenario could impose an even greater financial risk compared to maintaining the current agreement.
City Council Involvement
Despite the complexity of the situation, City Council members were not included in the discussions regarding the potential buyback. Alderman Bill Conway expressed concern over the implications of such a significant deal.
- 34th Ward Ald. Bill Conway emphasized the need for caution regarding multibillion-dollar deals.
City Council members will play a role in voting on the transfer of ownership from the current company to the new one. However, significant limitations exist under the current contract, leaving little room for alteration.
This recent development marks another chapter in the ongoing saga of Chicago’s parking meter management, which remains a contentious issue in the city’s history.
