Chicago Parking Meters
{{Short description|American parking meter company}}
{{Use mdy dates|date=November 2023}}
File:Multi-space parking meter (37944634252).jpg
File:20110219 70 Parking her car, Superior St. near Wells St. (5504193039).jpg
Chicago Parking Meters, LLC, also known as ParkChicago,{{Cite news |last=Scarcella |first=Mike |date=2023-10-30 |title=US Supreme Court won't wade into Chicago parking meter fight |language=en |work=Reuters |url=https://www.reuters.com/legal/government/us-supreme-court-wont-wade-into-chicago-parking-meter-fight-2023-10-30/ |access-date=2023-11-06}} is an American company{{cite web | url=https://thedeepdive.ca/chicago-parking-meters-are-making-uae-the-big-bucks/#:~:text=The%20lease%20was%20signed%20in,Dhabi%20Investment%20Authority%20shortly%20after | title=Chicago Parking Meters Are Making UAE the Big Bucks | date=28 May 2023 }} with several investors{{Cite web |date=May 16, 2013 |title=CITY OF CHICAGO ECONOMIC DISCLOSURE STATEMENT AND AFFIDAVIT{{!}}Chicago Parking Meters, LLC |url=https://www.chicago.gov/content/dam/city/depts/fin/supp_info/AssetLeaseAgreements/MeteredParking/EDS/ParkingMeterSystemEDS_051613.pdf |access-date=2023-11-19 |website=chicago.gov}} that owns the parking meters in the city of Chicago, Illinois. The company has gained notoriety for its roots in the sale of the City of Chicago's parking meters to private investors, considered a financial disaster for the city.
History
During the 2008 financial crisis, the City of Chicago faced a major budget deficit, which prompted then-Mayor Richard M. Daley to propose the sale of city-owned parking meters. Brokers affiliated with Morgan Stanley then formed an LLC called "Chicago Parking Meters LLC" to facilitate a potential deal with the city over the sale of the meters.{{Cite web |last=Indelicato |first=Mario |date=November 21, 2008 |title=CITY OF CHICAGO ECONOMIC DISCLOSURE AGREEMENT AND AFFADAVIT - CHICAGO PARKING METERS |url=https://www.chicago.gov/content/dam/city/depts/fin/supp_info/AssetLeaseAgreements/MeteredParking/EDS/EDS4_ChicagoParkingMeters.pdf |access-date=April 3, 2024 |website=City of Chicago}}{{Dead url|date=September 2024}} By December 3, 2008, a deal was made to sell all 36,000{{Cite web |date=December 3, 2008 |title=Chicago Parking Meters, LLC Selected as Winning Bidder for the Chicago Metered Parking System |url=https://www.morganstanley.com/press-releases/chicago-parking-meters-llc-selected-as-winning-bidder-for-the-chicago-metered-parking-system_045f9d28-c142-11dd-b3a2-8df06e0b6eda |access-date=April 3, 2024 |website=Morgan Stanley}}{{cite web | url=https://www.theatlantic.com/business/archive/2010/10/why-does-abu-dhabi-own-all-of-chicago-s-parking-meters/339805/ | title=Why Does Abu Dhabi Own All of Chicago's Parking Meters? | website=The Atlantic | date=19 October 2010 }} of the parking meter spots in the city for 75 years for $1.15 billion.{{cite news | url=https://www.nytimes.com/2009/12/06/us/06cncmeters.html?smid=nytcore-ios-share&referringSource=articleShare | title=Abu Dhabi Shares Profits from Parking Meters | work=The New York Times | date=6 December 2009 | last1=Mihalopoulos | first1=Dan }}{{cite news | url=https://www.reuters.com/world/us/chicagos-11-billion-metered-parking-deal-upheld-by-appeals-court-2023-04-07/ | title=Chicago's $1.1 billion metered parking deal upheld by appeals court | newspaper=Reuters | date=7 April 2023 | last1=Scarcella | first1=Mike }} The deal was approved and finalized on December 4, 2008. When the deal went through, prices increased and many meters were vandalized in the initial rollout.{{Cite web |date=2018-05-15 |title=Parking meter deal keeps getting worse for city as meter revenues rise |url=https://chicago.suntimes.com/2018/5/14/18348206/parking-meter-deal-keeps-getting-worse-for-city-as-meter-revenues-rise |access-date=2023-11-06 |website=Chicago Sun-Times |language=en}} As of 2023, the investors in CPM LLC have recouped their investment plus $500 million, and still have 60 years left on the deal.{{cite web | url=https://chicago.suntimes.com/city-hall/2023/6/11/23755615/chicago-parking-meters-annual-audit-record-revenue | title=Parking meter deal keeps on giving — for private investors, not Chicago taxpayers | date=11 June 2023 }}
Criticism
The contract has been widely criticized as a negative example of privatization.{{cite web | url=https://inthepublicinterest.org/the-worst-privatization-deal-in-u-s-history-just-got-even-worse/ | title=The worst privatization deal in U.S. History just got even worse | date=9 June 2022 }} Part of the deal is that if any of the metered parking spots are not available as such, for any reason—i.e., parades, street maintenance, electrification for electric vehicles, bike lanes,{{Cite web |title=WTTW News Explains: What Happened With Chicago's Parking Meter Deal? |url=https://news.wttw.com/2023/07/27/wttw-news-explains-what-happened-chicago-s-parking-meter-deal |access-date=2023-11-06 |website=WTTW News |language=en}} or outdoor seating—then the city has to compensate the LLC for their projected losses.{{Cite web|url=https://www.youtube.com/watch?v=fDx6no-7HZE|title=Chicago Doesn't Own Its Own Streets | Climate Town|via=www.youtube.com}} Because compensation costs are so expensive, it had been criticized for limiting development of city infrastructure.{{Cite web |date=2019-05-07 |title=Companies raked in nearly $266M from parking meters, other city assets last year |url=https://chicago.suntimes.com/news/2019/5/7/18619170/companies-raked-in-nearly-266m-from-parking-meters-other-city-assets-last-year |access-date=2023-11-06 |website=Chicago Sun-Times |language=en}}
=Investors=
The investors in the LLC according to the City of Chicago are listed below. Matt Taibbi in Griftopia claims that Deeside investments owns 49.9% (and possibly a controlling share{{Cite web |last=Fisher |first=Max |date=2010-10-19 |title=Why Does Abu Dhabi Own All of Chicago's Parking Meters? |url=https://www.theatlantic.com/business/archive/2010/10/why-does-abu-dhabi-own-all-of-chicago-s-parking-meters/339805/ |access-date=2023-11-06 |website=The Atlantic |language=en}}) and Redoma S.a.r.l. owns 50.1%.{{Cite web |date=2012-04-06 |title=The Abu Dhabi Hustle |url=https://www.nbcchicago.com/news/politics/the-abu-dhabi-hustle/1953531/ |access-date=2023-11-06 |website=NBC Chicago |language=en-US}}
| class="wikitable"
|+ !Investor !Percentage interest in disclosing party !Country !Direct or indirect ownership |
| Morgan Stanley Infrastructure Partners LP
|11.415 |USA |direct |
| Morgan Stanley Infrastructure Partners A Sub LP
|38.032 |USA |direct |
| Morgan Stanley Infrastructure Partners A Chicago Meters Blocker, LLC
|31.403 |USA |indirect |
| Morgan Stanley Infrastructure Partners A LP
|31.403 |USA |indirect |
| Morgan Stanley Offshore Infrastructure Partners A LP
|24.061 |USA |direct |
| Deeside Investments, Inc.
|49.9 |USA |direct |
| Redoma S.a.r.l.{{Cite web |title=Redoma Sàrl, Luxembourg |url=https://www.northdata.com/Redoma+S%C3%A0rl,+Luxembourg/B144490 |access-date=2023-11-06 |website=www.northdata.com |language=en}}
|24.9999 |Luxembourg |indirect |
| Tannadice Investments, LLC
|24.9001 |USA |indirect |
| Abu Dhabi Investment Authority
|24.9001 |UAE |indirect |
| Allianz Lebensversicherungs – Aktiengesellschaft
|21.249915 |Germany |indirect |
| Allianz Deutschland AG
|24.9999 |Germany |indirect |
| Allianz SE[https://www.northdata.com/Allianz+SE,+M%C3%BCnchen/HRB+164232 Allianz SE Munchen] northdata.com {{Webarchive|url=https://web.archive.org/web/20230324090530/https://www.northdata.com/Allianz+SE,+M%C3%BCnchen/HRB+164232 |date=March 24, 2023 }}
|24.9999 |Germany |indirect |
References
{{reflist}}
External links
- [http://www.parkchicago.com Official website]