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Feeding the Meter? Bring a Buck Privatized parking helps city budget, hurts yours

Updated 3:22 PM CDT, Mon, Jan 26, 2009

Related Topics: Richard Daley

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The longterm lease with a private company for the city's 35,000 parking meters was a gamble that's earning a big payoff.

 

It's not news that Mayor Richard Daley plans to lease parking meters to help balance the city's budget, but the Tribune's Clout Street reported Tuesday that that plan is likely to raise parking rates to $1 an hour in most neighborhoods.

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Mayor Daley on Tuesday announced a bid to privatize the city's parking meters, a move which will increase rates sharply.

The longterm lease with a private company for the city's 35,000 parking meters was a gamble that's earning a big payoff for city coffers: a reported $150 million dollars to help bridge a $469 million budget gap.

The Tribune reported that the $1.1 billion to the city will come from Chicago Parking Meter LLC, which is made up of two Morgan Stanley infrastructure funds.

The sale of yet another city asset means motorists will almost certainly have to pay even higher prices during peak periods in congested areas in exchange for more cashless payment and pay-by-phone options.

Based on net parking revenues of $19.5 million in 2007, the city could be in line for an up-front fee similar to the 99-year, $1.83 billion Chicago Skyway. In exchange, the city and Park District would wash their hands of the parking meter headache.

The Chicago Tribune has the full story.

Comments (12)

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  • Jean Marie Thursday, Dec 4 at 9:52 AM FLAG COMMENT There should be something the taxpayers can do to keep Daley from selling off the city. The toll road went from $2.50 to $5.00 immediately after he sold it. Daley does not have the taxpayers interest in mind. What happened to the almost two billion he got for the toll road? Someone needs to investigate where the interest from that money is going.
  • Peachnes Thursday, Dec 4 at 7:39 AM FLAG COMMENT Daley is selling off the city piece by piece and it is costing the tax payers. At this time Daley should be cutting back starting with his office and work his way down. It cost too much to shop in Chicago and that is why I got to Indiana to purchase gas, water and food. The tax payer in Chicago need help with the price of everything going up now they want to give away the parking meters and some jobs.
  • Nate Tuesday, Dec 2 at 6:18 PM FLAG COMMENT Wake up Chicago, our mayor is selling us all out. The buget gap is between his ears and while he is ripping us all off, he is securing his retirement. He is the most successfull con man alive. What I would like to know is, why haven't the "feds" investigated this guy and why do the citizens of chicago say or do nothing. Daley can tell us all how he has made the city more attractive and we should be in awe of his commanding lea ... MORE >
  • Peter Skosey Tuesday, Dec 2 at 4:17 PM FLAG COMMENT The other day, my wife and I parked in the city lot at Lincoln Square, swiped our card in the pay and display machine and were charged $.50 to park for two hours. Both of us commented that it seemed like a waste of effort for $.50. I would be more than willing to pay $2.00 for that same parking spot provided a portion of the revenue went to improve that local retail corridor. This kind of revenue sharing is espoused by Donald ... MORE >
  • Dr Jay Tuesday, Dec 2 at 2:32 PM FLAG COMMENT For years I found it to be healthy,cheaper and faster to park just outside the loop CTA it in. I'msure more folks will be joining me. The walk is pleasent and if bad weather the CTA runs on time, most of the time.

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