Chicago’s Privatized Parking Meters – More tickets, higher rates?

I just read that the City of Chicago received a winning bid to hand over the management of the 35,000 parking meters to a private company from the department of revenue in Chicago. The new (privatization of) parking meter prices will likely have to be higher because they think this will close the $150 Million dollar budget gap (in a total of a $469 Million dollar budget shortfall) we have for 2008 and 2009 from several years of leasing. Yikes! The Chicago parking meter revenue was estimated at 19.5 million dollars in 2007. So, I am guessing this might be 10 years? More is due to be released in a press conference on Tuesday.

As if we needed another cost increase in the price of living in Chicago amidst a global recession.

UPDATE: The cost of the parking meters will quadruple from $0.50 per hour now to $1.00 per hour in 2009 and $2.00 per hour in 2013. The most competitive parking spot meters in the loop will go from $3.00 per hour now to $6.50 an hour in 2013. Holy cats, we will all have to sell our cars. The parking lease is also for 75 Years!  (and no free parking on Sundays) So Chicago has lost all future revenue from this area of the budget for the next 75 years. That will contribute to future budget shortfalls.

I think this privatization change may turn out like London or other crowded commuter cities where the parking rates are dramatically higher for peak usage times and the prices in general are raised anytime without any citizen or voter approval. Basically it just got a lot more difficult, expensive and exclusive to own a car in Chicago or to drive one downtown. (what’s next a congestion tax?) The higher meter rates will most likely influence paid parking garage rates to go up also and higher parking ticket rates if you fail to pay the meters. What I hope it improves is the way you have to pay for your parking meter. We really would like to see a pay by cell phone or pay by credit card swipe on the meters if they can get a high level of security with your private credit card data.

What they haven’t said is how long this private parking meter contract agreement is for with this un-named company Chicago Parking Meter LLC (which is made up of two Morgan Stanley infrastructure funds.) and the City of Chicago and how long we will have to endure even higher fees. (forever!) I am thinking the jump in Chicago private parking meter fees will most likely just push more people and commuters on to the already overburdened public transit bus and el train system. The rates for one time use CTA tickets and monthly CTA passes have also gone up in 2009, but it is far less that what people will see at the privatized parking meters.  Yuck!