Why did Mayor Daley choose to privatize parking?
Chicago sought to privatize the parking meter system for three basic reasons. 1) It fit their profile of assets amenable to long term transaction which could provide substantial financial benefit to taxpayers; 2) Management of meters was, according to Mayor Daley, not one of the core competencies of city government, while at the same time experienced, professional private operators existed who could improve efficiency and quality of service. 3) The city could secure private capital for important investments into an outdated system and eliminate long-term risks like operating and capital expenditures, as well as encourage changes to driver behavior. How did Chicago end up using a capital transaction to plug an operating deficit? Mayor Daley did not start out to monetize the metered parking asset for the purpose of addressing a budget shortfall. In fact, the City of Chicago began conducting preliminary due diligence on the potential metered parking concession in June 2007, long before a
