Parking Meter Lease Deal Still Not Finalized

Chicago drivers are getting a temporary reprieve on paying higher parking meter rates, courtesy of the lawyers.

That's because the deal to privatize Chicago's entire parking meter system to the new lessee, Chicago Parking Meter, LLC, has not closed yet.

It only took 72 hours for the city council to pass the ordinance privatizing Chicago's parking meters on December 5, 2008.

And despite the the fact the ordinance allows for the transfer of this city asset to the lessee, and for meter rates and hours and days of operation to change on New Year's Day, the deal is taking longer than expected to be finalized. Effectively, the city is still in control of the parking meters until the lease contract closes.

"The deal hasn't closed yet officially," according to Chicago Department of Budget & Management spokesperson Peter Scales. "The ordinance said the new rates were effective January 1, but the city cannot enforce the new rates without new signage."

Scales did not seem surprised by the delay, likening it to closing on buying a home.

"It's just like closing on the contract for a house," explained Scales. "Sometimes it takes longer than you hope."

The upshot from the delay is that rates on parking meters will not even begin to be changed to the higher rates until well into February, according Scales.

"The earliest the work will begin is the end of the month," said Scales. "But realistically, the work won't begin until well into February."

Scales admitted that with 36,000 plus meters in the system, it will take quite a bit of time to adjust all of them, but he did not have an estimate on how much time it will take to change over all the meters to reflect the new rates and days/time of enforcement.

But it doesn't seem a stretch to think that it will not be until late March or even April before all the meters have been changed.

When the deal is finally signed, sealed and delivered, Scales says the first parking meters changed will be downtown, with workers moving outward into the neighborhoods.

This delay gives Chicago drivers a little bit of breathing room before Chicago moves into a new era of higher priced meters.

With perhaps four weeks until meters start being changed and a full eight weeks from now before all the meters have been modified, drivers have more time to start stockpiling quarters.

For the most up to date news, information, tips and advice on Chicago parking news, parking tickets and red light cameras, check out The Expired Meter.

Comments

[ejhickey]

The company that owns and finances the company taking over the parking tickets , is Morgan Stanley. this is the same Morgan Stanley that got federal bailout funds to help keep it solvent and capable of financing deals such as this. Thus our tax dollars are being used finance a deal that will benefit a private corporation and raise our parking fees.

The next step in this grand design will be to automate the maters and eliminate the meter maids by installing electronic meters with sensors to detect when cars arrive and leave , photgraph th license plates and automatically issue tickets. Again this will be financed with federal money funneled through Morgan Stanley

[Mahi Joe]

I can't wait till Daley privatizes the city's streets and we see toll booths at every intersection. Daley is no better than Bush when it comes to privatizing. We pay the highest taxes in the nation now and with Daley privatizing many of the City's assets (airport, parking garages and now parking meters) he is hurting the working class which put his a$$ in office all these years. We won't forget this next election.

[JessWonderin]

So please EXPLAIN how a city owned monopoly revenue generation system can generate a PROFIT for a Private concern but NOT the CITY?? Seems it would be worth paying a competent MANAGER city employee a "commission" to run it and generate the income for the benefit of the actual citizens . . . . or maybe just do the job as required.

[frantaylor]

This is the fallacy behind all the stupid "privatization" efforts.

[sheputstheLinPAIN]

We already have to stockpile quarters. In the loop it's a quarter for 5 minutes! Many meters are 25c for 15 minutes. What can they raise them to? a quarter a minute???

[frantaylor]

It costs $23.00 to park for three hours in Cambridge, MA. Stop complaining.

[HARVIN]

Jesus effing Christ! I thought Hollywood was bad(10cents =3minutes,2 hr. max.)
You won't hear me complaining, my little Cambridge dove.