New York to Repeat Chicago’s Parking Meter Catastrophe (White Plains: leasing, salaries)

[Interlude]

Read more: New York to Repeat Chicagos Parking Meter Catastrophe | | Rolling Stone

Bloomberg is seeking a private company to operate the city's parking meters.

Readers of my last book, Griftopia, might recall a chapter about the city of Chicago leasing 75 years of its parking meter revenue to a coterie of private investors, some of them from the Middle East. The end result was and is a political obscenity: Native Chicagoans are now completely at the mercy of private interests when it comes to parking rates, collections, even holidays. When elected officials in Illinois can’t shut off the parking meters on Abe Lincoln’s birthday because a bunch of sheiks in Dubai don’t want the revenue stream turned off even for a day, you know something has gone seriously sideways in the national body politic.

Well, Chicago isn’t alone anymore. Hizzoner Michael Bloomberg in New York has decided to do his own version of the Chicago infrastructure bake sale; the city announced that it is putting up nearly 90,000 parking meters for lease. They’re expecting to get over $11 billion in upfront money from the deal, which is great news if you’re Mike Bloomberg, who gets to use that money to patch current budget holes instead of making tough cuts or raising taxes. The news is less awesome for the next half-dozen New York City mayors, or for the citizens of New York, who now will get to spend most of the 21st century grappling with its increasingly monstrous deficits with a major tributary from the city’s revenue stream shut off.

Looking forward to see how this disaster pans out.

[NooYowkur81]

Why would city want to lose that revenue? Doesn't make any sense to me. My main gripe with the pay-o-matic or whatever it's called is that they seem to break down all the time. I only occasionally drive but every time when I have to use one I often run into problems with the machines.

[SobroGuy]

I am aware of this initiative and the companies currently considering bidding...although I have not personally seen the RFP (Request For Proposal) yet..my boss has it. In the business it is called a "P3" which means Public Private Partnership.

Essentially the city will receive an upfront lump sum payment, in return for a 30 year (for example) lease on the parking meters (whatever cash flow they produce). The city typically will also receive a percentage of the revenue, and will cap the increases allowed. Another benefit of this deal is that the company will lay off all of the existing city employees (meter maids, etc) and hire their own private staff (for considerably less and no pensions, etc) which means the city is relieved of all the salaries, pensions, costs as well.

[nightcrawler]

we shouldn't even have metered parking. it is another rip off for the residents of the city.
and not to mention a PITA

[NooYowkur81]

Originally Posted by nightcrawler

we shouldn't even have metered parking. it is another rip off for the residents of the city.
and not to mention a PITA

I feel meters are a necessity. If it weren't for meters people would not move their cars. It forces movement. Unlike a city like White Plains for instance we don't have ginormous parking garages. Plus it's a nice source of revenue for the city. Just get better machines damn it!!

[Interlude]

Regardless of whether you think there should be meters, they do exist, and aren't going away. Currently, the city is considering leasing the meters to a private company. The city will get a lump sum up front that will be less than what the total revenues will be over the course of the lease. The private company will then manage the meters and keep most or all of the profits.

Sounds innocuous enough. However, in Chicago, it has been a disaster. The private company immediately raised rates and keeps raising them. The meters are in effect 365 days a year, 24 hours a day - no more free Sundays or holidays. The fines for the meter expiring have gone up. The city can no longer close streets for parades or other events without the consent of the parking meter company, which involves basically paying them off. As a bonus, the parking meter company paid $1.5 billion for a revenue stream that will get them $5-6 billion over the time period, so the city was ripped off for the privilege of being ripped off again and again.

Edit: Forgot the best part - you think government is unresponsive? Try fighting a ticket when the "customer service" number directs to a call center in India. Try raging against the parking rates when you can't vote someone else in, or make a contribution to their opponent. The managing company in Chicago is just a shell controlled by a sovereign wealth fund. IE, a Saudi oil money hedge fund.

Now, it's possible that NYC may negotiate a better deal. But does anyone thing Bloomberg cares at this point?

[TenaciousGuise]

Yup, I heard about this plan from a close friend who works for the DOT. Basically, Bloomderp would be replacing the one thing the city actually does pretty well with something that will not work...

Remind me again why people voted him in for this third term, because I certainly didn't.

[SobroGuy]

Tenacious....it was primarily because his opponent Bill Thomson was a complete moron, totally incompetent, and his entire platform was "Vote for me, at least I am not Bloomberg." It was no surprise why Bloomberg won a 3rd term. And honestly, if a numbskull like Bill Thompson runs again, I will vote for Bloomberg for a 4th term..because it still beats having a total moron as Mayor.

[urbanlife78]

I am all for parking meters, every city I have lived in has had them...but I am not concerned cause I don't drive or own a car here.

[grvthang]

What terrible news. This will be shoved down the public's throat, just as overturning term limits and Atlantic Yards were. Who's to mobilize against this - AAA?