Chicago Parking Meters
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Chicago Parking Meters LLC also known as ParkChicago[1] is an American company[2] with several investors[3] that owns the parking meters in the city of Chicago, Illinois. The company has gained notoriety for its roots in the sale of the City of Chicago's parking meters to private investors, considered a financial disaster for the city.
History
[edit]During the 2008 financial crisis, the City of Chicago faced a major budget deficit, which prompted then-Mayor Richard M. Daley to propose the sale of city-owned parking meters. Brokers affiliated with Morgan Stanley then formed an LLC called "Chicago Parking Meters LLC" to facilitate a potential deal with the city over the sale of the meters.[4] By December 3, 2008, a deal was made to sell all 36,000[5][6] of the parking meter spots in the city for 75 years for $1.15 billion.[7][8] The deal was approved and finalized on December 4, 2008. When the deal went through, prices increased and many meters were vandalized in the initial rollout.[9] As of 2023, the investors in CPM LLC have recouped their investment plus $500 million, and still have 60 years left on the deal.[10]
Criticism
[edit]The contract has been widely criticized as a negative example of privatization.[11] Part of the deal is that if any of the metered parking spots are not available as such, for any reason—i.e., parades, street maintenance, electrification for electric vehicles, bike lanes,[12] or outdoor seating—then the city has to compensate the LLC for their projected losses.[13] Because compensation costs are so expensive, it had been criticized for limiting development of city infrastructure.[14]
Investors
[edit]The investors in the LLC according to the City of Chicago are listed below.[3] Matt Taibbi in Griftopia claims that Deeside investments owns 49.9% (and possibly a controlling share[15]) and Redoma S.a.r.l. owns 50.1%.[16]
| Investor | Percentage interest in disclosing party | Country | Direct or indirect ownership |
|---|---|---|---|
| Morgan Stanley Infrastructure Partners LP | 11.415 | USA | direct |
| Morgan Stanley Infrastructure Partners A Sub LP | 38.032 | USA | direct |
| Morgan Stanley Infrastructure Partners A Chicago Meters Blocker, LLC | 31.403 | USA | indirect |
| Morgan Stanley Infrastructure Partners A LP | 31.403 | USA | indirect |
| Morgan Stanley Offshore Infrastructure Partners A LP | 24.061 | USA | direct |
| Deeside Investments, Inc. | 49.9 | USA | direct |
| Redoma S.a.r.l.[17] | 24.9999 | Luxembourg | indirect |
| Tannadice Investments, LLC | 24.9001 | USA | indirect |
| Abu Dhabi Investment Authority | 24.9001 | UAE | indirect |
| Allianz Lebensversicherungs – Aktiengesellschaft | 21.249915 | Germany | indirect |
| Allianz Deutschland AG | 24.9999 | Germany | indirect |
| Allianz SE[18] | 24.9999 | Germany | indirect |
References
[edit]- ^ Scarcella, Mike (October 30, 2023). "US Supreme Court won't wade into Chicago parking meter fight". Reuters. Retrieved November 6, 2023.
- ^ "Chicago Parking Meters Are Making UAE the Big Bucks". May 28, 2023.
- ^ a b "CITY OF CHICAGO ECONOMIC DISCLOSURE STATEMENT AND AFFIDAVIT|Chicago Parking Meters, LLC" (PDF). chicago.gov. May 16, 2013. Retrieved November 19, 2023.
- ^ Indelicato, Mario (November 21, 2008). "CITY OF CHICAGO ECONOMIC DISCLOSURE AGREEMENT AND AFFADAVIT - CHICAGO PARKING METERS" (PDF). City of Chicago. Retrieved April 3, 2024.[dead link]
- ^ "Chicago Parking Meters, LLC Selected as Winning Bidder for the Chicago Metered Parking System". Morgan Stanley. December 3, 2008. Retrieved April 3, 2024.
- ^ "Why Does Abu Dhabi Own All of Chicago's Parking Meters?". The Atlantic. October 19, 2010.
- ^ Mihalopoulos, Dan (December 6, 2009). "Abu Dhabi Shares Profits from Parking Meters". The New York Times.
- ^ Scarcella, Mike (April 7, 2023). "Chicago's $1.1 billion metered parking deal upheld by appeals court". Reuters.
- ^ "Parking meter deal keeps getting worse for city as meter revenues rise". Chicago Sun-Times. May 15, 2018. Retrieved November 6, 2023.
- ^ "Parking meter deal keeps on giving — for private investors, not Chicago taxpayers". June 11, 2023.
- ^ "The worst privatization deal in U.S. History just got even worse". June 9, 2022.
- ^ "WTTW News Explains: What Happened With Chicago's Parking Meter Deal?". WTTW News. Retrieved November 6, 2023.
- ^ "Chicago Doesn't Own Its Own Streets | Climate Town" – via www.youtube.com.
- ^ "Companies raked in nearly $266M from parking meters, other city assets last year". Chicago Sun-Times. May 7, 2019. Retrieved November 6, 2023.
- ^ Fisher, Max (October 19, 2010). "Why Does Abu Dhabi Own All of Chicago's Parking Meters?". The Atlantic. Retrieved November 6, 2023.
- ^ "The Abu Dhabi Hustle". NBC Chicago. April 6, 2012. Retrieved November 6, 2023.
- ^ "Redoma Sàrl, Luxembourg". www.northdata.com. Retrieved November 6, 2023.
- ^ Allianz SE Munchen northdata.com Archived March 24, 2023, at the Wayback Machine
External links
[edit]See also
[edit]
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