City gave up control of streets in meter privatization: study

Chicago tied its hands for generations when it comes to reducing congestion — through new bike lanes and bus-rapid transit lanes — when Mayor Daley turned 36,000 parking meters over to a private contractor, a new study has concluded.

Lost in the furor over broken, overstuffed and improperly calibrated meters and the steep schedule of rate hikes tied to the 75-year, $1.15 billion lease is the issue of future control over Chicago streets.

“In order to maximize profits, the city not only gave up control of future revenues, but just as importantly [if not more] gave up all control of the public right of way on any streets with parking meters,” said the study by the Active Transportation Alliance.

Although the city is free to remove meters or change rates and hours of operations, Chicago Parking Meters LLC must be compensated for the loss of revenue at a rate that assumes “a car were parked in the space for 24-hours-a-day in the Central Business District,” the study said.

“This means that every potential project on a street with meters — including bus rapid transit, bicycle lanes, sidewalk expansion, streetscaping, pedestrian bulb-outs, loading zones, rush-hour parking control, mid-block crossing and temporary open spaces — are dictated, controlled and limited by parking meters,” the study said.

“These restrictions severely limit innovative planning for bicyclists, pedestrian and transit users. The loss of the potential for bus rapid transit on most streets over the next 75 years is one of the most disappointing losses.”

The Active Transportation Alliance was formed to promote “better resource allocation that prioritizes bicyclists, pedestrians and [mass-]transit users.” But, the parking meter lease and its financial penalties stand in the way of that goal, the study said.

When Ald. Scott Waguespack (32nd) asked about reverting 270 meters in his ward to the hours of operation before the meters were privatized, he was told that the penalty would make it cost-prohibitive, the study said.

“If the city estimates that Waguespack’s time restrictions on meters would cost $608,753 over three years for 270 meters, the cost of removing parking or placing rush hour parking controls over the length of a potential route such as Western Ave. would be staggering,” the study said.

City officials said the alliance’s “report is simply incorrect in a variety of ways, including its “lack of understanding” that the city still maintains the “absolute right to control parking rates and meter placement” and “control over the public way.”

“It suggests that the transaction won’t benefit neighborhood or transportation improvements, which is also simply untrue,” said Pete Scales, spokesman for the city Finance Department. “The proceeds from this transaction – as well as other long-term leases – have very much allowed the City to continue to invest in neighborhood improvements and quality of life.”