Chicago Mayor Brandon Johnson said the city is not, in fact, going to buy back the 36,000 parking meters it sold to a private company 18 years ago. However, a change in ownership could still be on its way after the meters were sold to a different bidder.
“I want to put the rumors to bed: We are not pursuing the purchase of the city’s parking meters at this time,” Johnson told reporters Tuesday.
At the height of the 2008 financial crisis, a group of investors paid nearly $1.2 billion dollars for Chicago’s parking meters for 75 years.
The meters went up for a bid last summer, and multiple bidders, including the city, were interested. Johnson confirmed the city did look at a potential deal but decided against it. His team ran the numbers and decided it doesn’t make financial sense.
“The final purchase price is far too high, much more than we initially received for the sale and higher than most reasonable assumptions would support,” the mayor said.
Johnson confirmed the price was at least twice what the city originally sold the meters for. As for which private company is buying them, the city does not know yet.
Any change of control requires Chicago City Council approval. The mayor’s office said council members could know as soon as next month what the terms of a potential sale are.
The mayor said when deciding against buying back the meters, he listened to concerns from previous administrations and council members.
“I’ve been looking at this deal for the last decade and a half. I know what the value is. I don’t think we have the money laying around for it,” said 32nd Ward Ald. Scott Waguespack.
In addition to the financial risks, aldermen offered other considerations.
“What if everybody’s using Ubers? What if everyone’s using the CTA, which would be a good thing? What if flying cars exist? What if there’s another global pandemic?” said 34th Ward Ald. Bill Conway.
David Greising, president and CEO of the Better Government Association, also questioned whether a change in ownership would bring a rate increase.
“We saw, when the meter deal first was let, that parking rates increased dramatically pretty much overnight, and a new owner presumably will have incentive to also try to squeeze the meters for new revenue,” Greising said.
When NBC Chicago asked Johnson whether meter rates will increase under new ownership, he said: “There are some limits to what we’re able to do within the confines of this deal, but as far as parking rates being raised, I think it’s too early to make that projection.”
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