Tag Archives: New York City

Big Apple Moves Forward With Parking Meter Privatization

Despite Chicago’s historically epic failure in privatizing its parking meter system in 2008, New York City has opted to move ahead with doing a similar thing there.

In fact, NYC is citing Chicago by name, as the model for what not to do to successfully pull off a meter privatization deal according to the Wall Street Journal.

The WSJ is reporting New York City issued a request for qualification (RFQ) for potential vendors to manage the city’s 80,000+ metered parking spaces on Monday. This is the first step towards requesting bids for the contract and eventually awarding a vendor with a deal to manage the nation’s biggest parking meter system grossing $150 million a year, while netting $93 million a year for the city.

NYC May Follow Chicago’s Meter Privatization Example

Chicago is not really known for being a cutting edge city.

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.