Council votes on $75M parking meter cash

Chicago alders will vote Monday on how to spend $75 million from a parking meter lease transfer.

The city council approved a deal in late September that sells the remaining 57 years of the meter lease to Stonepeak. Alders voted 46 to 3 on the agreement, which includes a $2.63 billion payment and the $75 million transfer fee.

Finance Committee Chair Pat Dowell negotiated the deal alongside Nicole Lee, Walter Redmond Burnett, Scott Waguespack, and Gilbert Villegas. This transaction follows a 2008 agreement under Mayor Richard M. Daley that leased the meters to Chicago Parking Meters LLC for $1.15 billion. That original deal is often cited as a major financial misstep for the city.

Dowell argued the initial proposal offered no benefit to the city. He stated that alders negotiated additional terms to make the deal viable. The new contract also includes a 5% profit share of annual net income from the meters for the lease duration.

City officials estimate that profit share will total roughly $367 million over 57 years. Ald. Bill Conway, a former investment banker, disputes that figure. He believes the city will net only about $140 million after Stonepeak accounts for interest expenses and depreciation.

The Johnson administration explored buying back the meters last year. The city made a $3.2 billion bid but withdrew it to avoid taking on massive debt. That debt would have required raising parking rates annually for 40 years to cover costs.

Alders are split on the use of the $75 million. Mayor Brandon Johnson wants to use the funds to offset 2027 pension costs and close the budget gap. Ald. Timmy Knudsen argues the money should pay down the $36 billion pension debt directly. Knudsen said, "I will be advocating to ensure these funds are used as intended: to pay down our pension debt, not plug another budget hole." The council begins its special meeting at 10 a.m. Monday.