Dec 2, 2008 10:41 pm US/Central
Meter Mania: 1 Hour Parking = 26 Quarters By 2013
City To Privatize Parking Meters, Rates To Go Up Through 2013
CHICAGO (CBS) ―
It's going to cost a lot more to park at a meter in Chicago starting next year. Mayor Richard M. Daley announced on Tuesday that the city has entered into a $1.157 billion, 75-year contract with Chicago Parking Meters, LLC, to privatize the collection of funds from the approximately 36,000 metered spaces on the streets of Chicago.
"The funds for this historic parking meter agreement will strengthen our city finances for the long term, give us the ability to continue in investing in people's needs, and, more importantly, protect our city and taxpayers from a very worsening and difficult economy," Daley said.
Right now, it costs $3 per hour to park in the Loop, $1 per hour for the Central Business District outside the Loop – an area bounded roughly by Division Street, Cermak Road, Halsted Street and Lake Michigan. It costs 25 to 75 cents in the neighborhoods outside the downtown area, with higher rates in higher-density neighborhoods, particularly on the north lakefront.
Effective next year, it will cost $3.50 to park in the Loop, $2 to park downtown outside the Loop, and $1 to park in the neighborhoods.
Those rates will go up every year through 2013, at which point it will cost $6.50 per hour to park in the Loop, $4 to park in downtown outside the Loop, and $2 to park in the neighborhoods. After that, rates will be adjusted annually by inflation, the city said.
This means that when 2013 comes, if you park in the Loop for an hour, you'll have to pump 26 quarters in the meter. There will be non-cash options for all meters, the city said.
CBS 2's Dana Kozlov reports that the proposed parking meter increase has some businesses and drivers tapped out.
Dennis Carroll is not a happy parker. News that Mayor Daley's parking meter privatization plan means more pocket change required is the last thing he wants to hear.
"The parking thing has been the one way for this administration to attack people because they know we need our cars," Carroll said.
"I think it's making people want to move out of the city of Chicago," said Chicago driver Barbara Wenk.
"I'd probably honestly try to use more public transportation," said Chicago driver Kevin Lorenz.
But keep in mind, CTA fares are going up next year, too. Some businesses in Chicago's meter heavy neighborhoods are afraid it will all drive customers away.
"It does have the possibility that people would go to a place that has free parking, that sort of thing, because it is expensive around here as it is," said Drev Sine, Mon Ami Coiffeur.
Chicagoland Chamber of Commerce President Jerry Roper thinks higher rates could give some retailers a boost.
"The parking meters in the neighborhoods are really designed on the retail streets to move people in and out," Roper said.
Between 9 p.m. and 8 a.m., rates for the Loop and parking lots are cut in half. Elsewhere, meters do not need to be fed at all during those hours.
Mayor Daley said Tuesday that the proceeds from privatizing the meters will be split with $400 million in a long-term reserve and revenue replacement fund, $325 million in a fund to help balance budgets, and a $100 million in a fund to help the needy, including people who lose their jobs and homes. The rest will go into a fund to "help bridge the period until the nation's economy begins to grow again," according to the mayor's office.
The mayor's office pointed out that about 25 percent of the meters are in two downtown wards, 19 wards hold less than 1 percent of the meters, and two wards have no meters at all.
"During the toughest economy our nation has faced in 50 years, it is more important than ever that we manage our budget in ways that are both responsible and creative," Mayor Daley said of the plan.
The City Council Finance Committee will vote on the plan on Wednesday, and the full City Council will take a vote at a special meeting on Thursday.
Parking boxes will likely become more common allowing for change or credit card payments. The city will continue to get money for all parking violations.
Parking Meter Rates (per hour): Loop: 2008 (current), $3; 2009, $3.50; 2010, $4.25; 2011, $5; 2012, $5.75; 2013, $6.50
Non-Loop Central Business District: 2008 (current), $1; 2009, $2; 2010, $2.50; 2011, $3; 2012, $3.50; 2013, $4.
Neighborhoods: 2008 (current), 25 to 75 cents; 2009, $1; 2010, $1.25; 2011, $1.50; 2012, $1.75; 2013, $2.
CBS 2's Dana Kozlov, Mike Flannery and the Associated Press contributed to this report.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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