Tag Archives: Indianapolis
NBC Chicago writer Edward McClelland last week boldly predicted that due to Chicago’s horrible experience with it’s infamous and hated parking meter lease deal, no city will ever privatize their parking meters ever again.
There’s only good thing about Chicago’s parking meter deal: no other city will ever again lease its parking concession to a private company.
McClelland points to when Pittsburgh flirted with the idea before turning its back on privatizing their meters.
But humorously, just a week after his gutsy prediction, Cincinnati signed away its parking meters for 30 years and a $92 million upfront payment according to the Business Courier.
In addition, it looks like Sacramento is poised to follow the Queen City any day now.
But Indianapolis’ parking meter lease deal did squeak through the City Council, 15-14 Tuesday morning according to the city’s website.
Indy’s deal leases out 3700 metered spaces for 50 years for only $20 million up front. But the city will get to share in the revenues which, according to city estimates, will bring in $620 over the life of the lease. Indy’s contract, unlike Chicago’s relatively inflexible deal, does have the ability to opt out of the deal every ten years.
The main player in the lease deal is ACS, a company owned by Xerox, which makes up the majority stakeholder in a new entity to oversee the meter system called ParkIndy along with two smaller, local companies.
Normally, trends start in LA or New York and a decade or two later, finally make it to Chicago.
But in at least one regard, it seems Chicago is a real trend setter.
Just under two years ago, Mayor Daley made Chicago the first city in the nation to privatize it’s parking meter system.
Now other cities are following suit.
Currently, Pittsburgh seems ready to pull the trigger on a 50 year meter lease for $452 million.
Los Angeles, nearby Indianapolis and a handful of other cities have been mulling over the idea as well.
But now, it looks like the nation’s largest city, New York City, may follow Chicago’s lead as well.
According to a story in Monday’s New York Post, the Big Apple is considering selling off its 54,000 plus meter system, estimating it could generate an upfront payment of $5 billion.
But former Indianapolis mayor and now deputy mayor for NYC Steven Goldsmith says the city won’t be rushed into a deal that would dry up a revenue stream that produced $138.9 million in revenue in 2009.