Chicago reportedly bid $3.3B to buy back parking meters, aldermen demand answers

CHICAGO - During a Chicago City Council finance committee hearing, aldermen found out that Mayor Brandon Johnson's administration put in a bid to buy back the parking meters the city sold in 2008.

What we know:

Former Mayor Richard M. Daley made the deal for $1.15 billion with Chicago Parking Meters LLC, which is run by Morgan Stanley. During Thursday's finance committee meeting, several alders expressed that it was one of the worst deals in the city's history. They spent hours questioning representatives from Stonepeak, which is an investment firm from New York City that won the bid to buy the parking meters from CPM, pending city council approval.

Alders also questioned the city's Law Department after finding out the city quietly attempted to buy back the parking meter system.

The city's Law Department confirmed the Johnson Administration submitted a bid to buy the parking meters sometime in the fall 2025, but declined to disclose the amount. However, Stonepeak Senior Managing Director James Wyper told aldermen the company understood Chicago's offer was several millions over its offering.

"We believe it to be $3.3 billion," Wyper said when asked directly by Alderman Matt O'Shea, 19th Ward.

Stonepeak's bid was approximately $2.53 billion, according to company representatives.

Wyper said the company was surprised by the city's offer, particularly because officials had previously indicated Chicago was not interested in purchasing the meters.

"We were very surprised," Wyper said. "We had been assured for some period of time that the city was not interested nor was it candidly capable of raising the quantity or magnitude of funds required to purchase the parking meters."

According to Stonepeak, one reason the city's offer was not selected was because it would have relied heavily on borrowing money through municipal bonds. The hearing also revealed the Johnson administration entered into a confidentiality agreement with CPM during the bidding process. 

Representatives from Stonepeak said portions of that agreement were waived June 12, allowing more information to be discussed publicly. That revelation frustrated several aldermen who said they still have not received answers from the mayor's office.

"So the mayor put a bid in six months ago, $3.3 billion for parking meters that we don't have the money for, didn't disclose that to anyone in the City Council," O'Shea said. "I think we need to get someone down here to answer some of these questions."

Ald. Samantha Nugent echoed those concerns.

"I think what we're seeing is a lot of folks that don't want to touch this and are using NDA's and walls and all sorts of excuses to not having skin in the game in something critically important to the entire city of Chicago," Nugent said.

Ald. Anthony Beale was even more blunt.

"They did not want anybody to know that they bidded $800 million more than you guys did," Beale said. "Anybody who bids $800 million dollars over, they need to be fired."

Questions about Stonepeak

The hearing was not focused solely on the city's bid. Several alders raised concerns about Stonepeak's broader business portfolio, including one company that transports Russian liquefied natural gas. 

Wyper defended the firm's investments and said some of the contracts predate current geopolitical tensions and sanctions.

"It bothers me that the source of the molecules is the Siberian Peninsula," Wyper said. "There were no sanctions in place at the time that we acquired that business."

Ald. Andre Vasquez, 40th Ward, expressed criticism over Stonepeak's business portfolio, specifically with its subsidiary company, Air Transport Services Group, which owns Omni Air International. This is the same company behind the Trump Administration's controversial ICE flights to Third World countries.

"At some point, tear gas people to get them off of a flight, to force them off. There is nothing about this organization and this company is doing that anyone should want to be a part of, and it affects the reputation of anyone partnering with them and the city engaging in anything of it," said Vasquez. "So I'm trying to understand why there's any continued thing and y'all ended any contracts and ended any association if you hope to have a conversation because for a sizable contingent of this council, it is a non-starter to even talk about."

"I hate this, this is not the business we bought," said Wyper, who mentioned the company was trying to sell Omni.

Other aldermen questioned how much profit Stonepeak expects to make over the remaining life of the parking meter concession agreement and whether Chicago drivers could eventually face higher rates.

Ald. Byron Sigcho-Lopez said residents continue to express frustration over the original parking meter deal and want greater public control of the system.

"The people in Chicago are outraged by this," Sigcho-Lopez said. "People who have actually asked the City Council to have more control over these meters."

Despite the criticism, Stonepeak executives attempted to reassure aldermen they would be long-term owners focused on managing the asset responsibly.

"This would be a long-term investment for us," Wyper said. "We intend to hold the asset for the remaining life of this concession."

What we don't know:

Several major questions remain unanswered:

Why did the Johnson administration decide to pursue a $3.3 billion bid after previously saying buying back the meters was too expensive?

How was the city planning to finance the acquisition?

Why was City Council not informed about the bid when it was submitted?

Does Mayor Brandon Johnson support the proposed transfer to Stonepeak?

During the hearing, aldermen repeatedly asked city officials to explain the mayor's position. Representatives from the Law Department declined to answer, saying those questions should be directed to the mayor's office.

What they're saying:

"The City’s bid price has been reported publicly.

"The bid process was conducted as a closed process. The City had no control over the structure of the bid process or its terms. Morgan Stanley established the bidding procedures, including which bids would advance through the process and whether the City could continue participating. The City participated under those terms to evaluate whether acquiring the asset was in the best interest of taxpayers. Once the City determined in January 2026 not to proceed based on the price demanded by the seller, the resulting cost to taxpayers, and the assessment that the transaction was not in the public interest, it publicly disclosed to the City Council and the public that it had participated in the bidding process.

"The confidentiality agreement has not been waived. While CPM has made public statements regarding the confidentiality agreement, the City cannot treat those statements as a formal waiver. The City is awaiting that formal authorization before disclosing any information covered by its confidentiality obligations," a statement from a spokesperson with Mayor Johnson's administration reads.

What's next:

The Finance Committee did not vote on the proposed transfer Wednesday.

The ownership change still requires City Council approval before Stonepeak can officially take control of Chicago Parking Meters.

In the meantime, aldermen are expected to continue pressing the Johnson administration for answers about the city's unsuccessful $3.3 billion bid and the secrecy surrounding the process.

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