City Privatizing Parking Meters

Chicago Sun-Times:

It looks like Mayor Daley's giant budget gamble has paid off -- and then some.

On Monday, the city received what a top mayoral aide described as a "winning bid" for Chicago's 35,000 parking meters.

The winner and final price won't be known until Daley announces it Tuesday. But, it's large enough to fill the $150 million budget gap this year and next needed to avoid another painful round of layoffs and tax increases -- and leave a pile of money left over to finance city infrastructure projects.

The sale of yet another city asset means motorists will almost certainly have to pay more to park at metered spaces -- and 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.

Read the whole story: Chicago Sun-Times

Comments

[K-Dog76]

Chicago Skyway, Midway Airport, Parking Garages, now Parking Meters. Each of these produced a steady stream of income for the city.

Newsflash: Private vendors don't take on contracts if they can't turn a profit. Whatever they net is money the city has lost.

The worst part is, Chicago is addicted to spending, within a year we will spend more than the contract's annual return and we'll have some other fire sale or another increase in taxes.

Chicago is the most heavily taxed city in the nation. It also has one of the most corrupt governments.

[nowalnuts]

This is a horrible quick fix-nothing plan. Thanks, Mayor Daley, for raping my wallet once again.