Chicago Parking Meters Sold to New Private Owner, Confirms Mayor Johnson
Chicago’s parking meters have been transferred to a new private owner, confirmed by Mayor Brandon Johnson. The recent sale comes after considerations for the city to buy back the meters, but the financial implications proved too costly.
Background of the Parking Meter Sale
The sale involves a controversial agreement made 17 years ago. Former Mayor Richard M. Daley sold the city’s parking meters to a private firm for $1.15 billion. This deal has been described as disastrous due to its long duration of 75 years, which led to significant revenue for the private company.
Current Parking Meter Rates
Under the current management, parking rates at meter spots in downtown Chicago stand at $7 per hour. This marks a significant increase from the $3 per hour rate set when the city owned these meters. The new owners, within a year of acquisition, reportedly earned approximately $2 billion in revenue.
Mayor’s Position and Concerns
Mayor Johnson revealed that the meters were sold for at least double the price they were purchased for in 2008. Although his administration explored the feasibility of repurchasing the meters, they encountered numerous challenges. “The more we investigated, the more issues arose,” he stated.
Financial Risks of Buying Back
Had the city decided to buy back the meters, Mayor Johnson noted that all generated parking revenues would go towards debt repayment. This scenario would limit the city’s ability to adjust parking rates or reduce the number of meters if necessary.
- The city would bear 100% of the debt and related payments.
- This arrangement posed greater risks compared to the current contract obligations.
City Council’s Role
Discussions around the parking meter sale did not involve City Council members directly. Alderman Bill Conway emphasized the complexity of dismantling the original deal made by the previous administration. “We must be careful with any multibillion-dollar agreement that alters a problematic deal for the city,” he said.
Before the sale is finalized, the City Council must vote on the transfer from the original company to the new owner. This decision holds significant importance for Chicago’s future parking management and financial health.
