From Chicago Sun-Times · · 3m
Finance Committee backs $2.5 billion sale of Chicago parking meters
Chicago Finance Committee approves $2.53 billion parking meter sale with compromise to fix 2008 deal.
In brief
Chicago Finance Committee approves $2.53 billion parking meter sale with compromise to fix 2008 deal. Chicago Finance Committee approved Stonepeak Partners' $2.53 billion bid to acquire parking meters after sweetening the 2008 deal to benefit taxpayers. Originally reported by Chicago Sun-Times.
Finance Committee approves parking meter sale
Chicago's Finance Committee approved Stonepeak Partners' $2.53 billion bid to acquire Chicago parking meters after sweetening the 2008 deal to benefit taxpayers.
2008 parking meter deal criticized
Finance Chair Pat Dowell called former Mayor Richard M. Daley's 2008 decision to lease parking meters for 75 years an example of what not to do.
Lopsided deal history
The 2008 deal allowed private investors to recoup $1.15 billion investment by 2019 after 11 years, with Chicago paying for every space taken out of service.
Compromise terms
Stonepeak agreed to pay $75 million upfront and 5% profit-sharing, or $376.2 million over the agreement, to address Chicago's $36 billion unfunded pension liabilities.
Voting results
Two Council members, Budget Committee Chair Jason Ervin and 6th Ward Ald. William Hall, voted against the deal while the committee approved Stonepeak's $2.53 billion bid.
Ald. Bill Conway's concern
Downtown Ald. Bill Conway argued Stonepeak's estimated benefit for Chicago taxpayers was wildly overstated by more than $100 million.
Ald. Anthony Beale's view
Ninth Ward Ald. Anthony Beale said it would take a lot of sugar to sweeten the sour deal but demanded the $75 million upfront payment be earmarked for Chicago's $36 billion unfunded pension liabilities.
Stonepeak's additional commitments
Stonepeak agreed to sell Omni Air International, an airline that provided long-haul deportation flights during President Trump's deportation campaign, and explore nonmetered city blocks for electric vehicle charging stations.
Ald. Ervin's concerns
Budget Committee Chair Jason Ervin questioned Stonepeak's willingness to walk away at a loss and what would happen if the selling price turned out too low.
Ald. Nick Sposato's reaction
Ald. Nick Sposato called the deal a major coup for Chicago, saying he was jumping for joy about the accomplishment compared to the 2008 deal.
Unfunded pension liabilities
Chicago faces $36 billion in unfunded pension liabilities that the compromise aims to address through Stonepeak's $75 million upfront payment and 5% profit-sharing.
Next steps
The full City Council must approve the deal by Sept. 30 or risk arbitration and lawsuits that could cost Chicago taxpayers millions.
Potential consequences
If the Council rejects the deal, Stonepeak could ask an independent arbitrator to order approval or pay an exorbitant penalty before filing a lawsuit.
Remaining concerns
African American contractors and the divestiture certificate's lack of detail on Omni Air International's sale remain unresolved issues for the deal.
At a glance
Chicago Finance Committee approved Stonepeak Partners' $2.53 billion bid to acquire parking meters after sweetening the 2008 deal to benefit taxpayers.
