Chicago parking meter deal hits roadblock as aldermen seek changes
Chicago parking meter deal hits major roadblock as deadline nears
A $2 billion parking meter deal faces growing opposition in City Council as aldermen push for changes and a Sept. 30 deadline approaches.
CHICAGO - Chicago’s plan to finally get something back from the infamous 2008 parking meter deal ran into trouble Friday, after finance chair Pat Dowell chose to defer and publish the measure after sensing opposition to the ordinance.
Dowell says Corporate Counsel Mary Richardson-Lowry has advised all parties that the deal must be approved by Sept. 30, or risk hundreds of millions of dollars in arbitration.
The deal allows New York firm Stonepeak to buy the remaining 57 years of the Chicago Parking Meter deal in exchange for a $75 million payment toward the city's pension debt. In addition, the city would get 5% of net profits annually and a 2% return on any future sale of the parking meters.
What they're saying:
"I wanted to shore up the votes in favor of the ordinance and also give my colleagues more time to review the ordinance," said Dowell. "And because there are efforts afloat by the Mayor's floor leader to get 'no' votes. And we can't have that."
She's talking about floor leader Jason Ervin, alderman of the 28th ward. Ervin and the city council's progressive caucus had a closed door meeting Thursday night, attempting to unite in potential opposition to the deal.
Ervin and Ald. William Hall told reporters Friday that they felt the process was rushed. Hall, in particular wants greater carveouts for Black Chicagoans.
"We made concessions for ICE, so now we make concessions for access," said Hall. "Its not September 30. So I think that now, everything is on the table. And I don't think that's a bad thing. I think what we will see is a more diversified Chicago. An outsider can't come in without working with the people that built Chicago."
Ervin takes issue with the 5 percent net profit in the deal. He wants the gross profit, meaning more money for the city and taxpayer benefit.
"There is more value that should be extracted," said Ervin. "There's way too many questions. And if the deal is good today, it will be good Tuesday, it will be good next week."
What's next:
Tuesday is a potentially do-or-die council meeting for the sale of the parking meter deal to get passed, and Aldermen in support believe it will.
"The votes are there in this chamber," said Finance Vice Chair Bill Conway. "This is an unnecessary delay. And this is already a deal that's going to bring significant value to the taxpayers."
"The September 30 deal is a final deal for us and final date for us," said Dowell.
The Source: The information in this report came from Chicago City Council Finance Chair Pat Dowell, Ald. Jason Ervin, Ald. William Hall, Finance Vice Chair Bill Conway, Corporate Counsel Mary Richardson-Lowry, and FOX Chicago reporting.