Chicago would get $1.1B in parking meter lease

[December 03, 2008]  CHICAGO (AP) -- The city already has deals to lease an airport, a toll road and garages. Now it wants to add parking meters to that list to raise some much-needed cash.

Mayor Richard Daley unveiled a proposal Tuesday to lease Chicago's metered parking system to a private operator for more than $1.1 billion in a deal that would drive up parking rates but help the city weather tough economic times.

"This use of metered parking proceeds will give us the flexibility to address our worsening economy, protect our city finances and taxpayers and keep investing in our city's human needs over the next few years," Daley said at a news conference.

The 75-year lease deal would be a boon for city coffers but a bust for motorists who would see parking rates climb at the city's 36,000 metered spaces.

Neighborhood hourly meter rates would climb to $1 next year and $2 in 2013 from their current 25 cents. Daytime downtown hourly parking rates would rise to $3.50 next year and to $6.50 in 2013, up from $3. After that, rates would be adjusted annually by inflation.

In New York, Mayor Michael Bloomberg also recently proposed higher parking meter rates to help with the city's budget crunch. His plan would double the cost of street parking in parts of midtown and downtown Manhattan, where most meters charge $1 per hour.

The proposed lease in Chicago is the latest for a city that has already cut deals to lease other property to raise money -- including Midway Airport and the Chicago Skyway.

Daley plans to use the nearly $1.2 billion in proceeds to pump $400 million into a long-term reserve fund, $325 million to help balance city budgets through 2012 and $100 million on programs to support residents in need. The remainder -- about $324 million -- would be a rainy-day fund "to help bridge the period until the nation's economy begins to grow again," he said.

The Better Government Association, a watchdog group, is concerned about parking rates going up.

"Do the users benefit? No," BGA executive director Jay Stewart said.

But he said he also understand the position the city is in.

"When you're in the middle of a huge economic downturn and you can bring in that kind of cash in one fell swoop, it's hard to argue we shouldn't do that," Stewart said.

Daley will ask the City Council to approve the deal at a special meeting Thursday.

[Associated Press; By DEANNA BELLANDI]

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