An Analysis of the Lease of the City’s Parking Meters
Summary
In January 2009, the Inspector General’s Office began an independent review of (i) the parking-meter lease from a financial perspective, and (ii) the process used by the City in deciding to enter into the lease.
Executive Summary
In December 2008, the City of Chicago leased its system of 36,000 parking meters to a private company for 75 years in exchange for a payment of $1.157 billion. This type of long term lease of public assets is known as a “public-private partnership” (“PPP”). The administration announced the agreement on December 2, 2008, revealing for the first time the details of the lease agreement – including the extent of the meter rate increases and the length of the lease. Two days later, on December 4, 2008, the City Council approved the lease agreement by a vote of 40 to 5.
In January 2009, the Inspector General’s Office (“IGO”) began an independent review of (i) the parking-meter lease from a financial perspective, and (ii) the process used by the City in
deciding to enter into the lease. Our analysis and findings are described in the attached report. The IGO’s review included interviews of City personnel involved in the parking-meter deal and the City’s financial advisor; analysis of documentation and written explanations provided by the City; extensive research into the literature on PPPs; and interviews of government officials and academics around the country.
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