Chicago’s parking meter deal still haunts the city’s finances 16 years later

CHICAGO - This Wednesday, Chicago marked the anniversary of a financial deal so contentious it’s often referred to as one of the city’s biggest blunders—the infamous 75-year parking meter lease. 

Back in 2008, then-Mayor Richard M. Daley pushed the agreement through the City Council in just 72 hours. The deal handed control of Chicago’s parking meters to private investors in exchange for a one-time $1.15 billion payout.

At the time, it was sold as a way to patch up a massive budget hole during the Great Recession. But looking back, critics argue it’s been a disaster for the city. Private investors are expected to recoup their investment in just 15 years, leaving them with 60 more years of profits while Chicago gets nothing.

A Lack of Transparency

Joe Ferguson from the Civic Federation said the lack of public hearings and transparency is what set the stage for all the regret we’re seeing now. The deal was pushed through so quickly that council members barely had a chance to look at the fine print before voting—and it still passed 40-5.

Ald. Scott Waguespack, who’s still on the council today, and now-Cook County Board President Toni Preckwinkle were two of the few who voted against it. Even back then, they were raising red flags about the long-term risks of giving up such a valuable city asset.

A Temporary Fix, Lasting Consequences

The $1.15 billion payout gave the city a quick fix for its budget gap, but critics said the money wasn’t handled wisely. Promises to save some of it for future needs, like pension obligations, didn’t really pan out. 

Ferguson pointed out that if that money was invested properly, it could have been generating revenue for years. 

Instead, Chicago gave up a major moneymaker. Now, the city is dealing with new budget challenges, but the parking meter system—once a reliable source of income—is making big profits for private operators instead.

Lessons Learned

Fifteen years later, the parking meter deal is still a classic "what not to do" story when it comes to prioritizing quick fixes over smart, long-term planning. 

Ferguson said the city is still struggling with pension obligations and other financial challenges.

City officials are also hoping that history won't repeat itself with another bad deal.