(The Center Square) – The Chicago City Council has approved a modified agreement allowing the sale of the city’s parking meter system between private entities.
The council voted 46 to 3 in favor of the $2.53 billion deal between Chicago Parking Meters LLC and New York-based Stonepeak on Tuesday.
Alderman Red Burnett supported the agreement that gives the city $75 million from Stonepeak plus a 5% share of annual profits.
“I know for a fact that that money up front is something that benefits Chicagoans today, but I also know that we worked very hard to make sure that this contract is something that can help us in the future,” Burnett said.
Alderman Jason Ervin said the city’s sale of the parking meters in 2008 was couched as the worst municipal finance deal in U.S. history, and some of the same things are playing out again.
“They said it was the deal of the century, same thing was said again. Last time in 2008, there was a false sense of urgency, same thing again,” Ervin said.
Alderman Pat Dowell said she never called the current agreement the deal of the century, but she encouraged support for the ordinance she introduced along with Alderman Scott Waguespack.
Waguespack voted against the city’s sale of the parking meters during Mayor Richard M. Daley’s administration in 2008, but he urged support for the new agreement that faced a deadline on September 30.
“We signed a contract in ’08. If we just decide we’re not going to abide by contracts any more, what kind of government is this?” Waguespack asked.
Alderman Matt O’Shea said the agreement is a way to protect taxpayers and fulfill the city’s pension obligations.
“$75 million which, by the way, in a couple weeks this administration is gonna tell us they’re not gonna make the advance pension payment, so we really need that $75 million,” O’Shea said.
Stonepeak removed a potential obstacle by confirming on Monday that it reached an agreement to sell one of its investments, Omni Air, which had contracts with the U.S. Department of Homeland Security for deportation flights.
Mayor Brandon Johnson said he was grateful to city council for providing stronger provisions in the deal that were not there before.
Aldermen also approved an ordinance requiring three fifths of the council to approve new debt issuance instead of a simple majority. The measure passed by a vote of 32-15.
When asked after Tuesday’s meeting, the mayor did not say whether or not he would veto the debt issuance measure.
“What decision I make in the near future, I’m going to make a decision that benefits the very people who need this type of investment to work, and those are the families who live on the west and south sides of Chicago,” Johnson said.
Sean Reed contributed to this story
