DO YOU PARK IN CHICAGO? Bring More Pocket Change! Meter Rates to Increase January 1st!
DO YOU PARK IN CHICAGO? Bring More Pocket Change! Meter Rates to Increase January 1st!
MOST METER RATES TO QUADRUPLE IN MOST CHICAGO NEIGHBORHOODS – WILL EVENTUALLY HIT $6.50/HOUR DOWNTOWN!
Within the last twelve months we Chicago Residents have endured many tax increases. The Sales Tax in Chicago – now 10.25% the highest in the U.S. Property taxes have increased. Heck even the price of a bottle of water is subject to a 5-cent Bottled Water Tax!
Two weeks ago the Chicago Transit Authority approved a nearly 29% hike in El Fares. The City of Chicago is installing more Red Light Traffic Cameras officially to make intersections safer but as a practical matter to generate more revenue.
Now Chicago plans to privatize its thousands of parking meters in return for a $1.2 Billion up-front payment and a 75-year lease from a New York company. Beginning after January 1 2009 – or as quickly as existing meters can be retrofitted – meter parking on streets throughout Chicago Neighborhood Business Districts across the city will cost $1.00 per hour up from the current hourly rate of 25 cents. Within five years the per-hour meter fees will climb to $2.00!
At parking meters in Downtown Chicago and The Loop the fee would be bumped up 50 cents initially to $3.50/hour and eventually to $6.50 per hour.
In addition plans call for making parking meters downtown enforceable 24 hours/7 days from the current 8 AM to 9 PM Monday through Saturday. Sunday parking would also be charged in Chicago Neighborhoods and the hours of meter enforcement would be extended to 9 PM each night in areas where enforcement currently stops at 6 PM.
Why the big increase?
As you might guess – revenue! Easy revenue! The Chicago City Budget for 2009 shows a $469 Million shortfall which must be plugged according to IL Law. The slowing economy has resulted in far less sales tax revenue than projected one year ago – even at the new 10.25% rate. Due to the sluggishness in the Chicago Real Estate Market this year Real Estate Transfer Tax revenue is down as well – in November alone the city collected $4.3 Million from its $10.50/thousand of sales price Real Estate Transfer Tax versus a $10.9 Million projection.
Even the new parking meter program however will not completely fill the Chicago budget hole however. Much of the money generated will be placed in reserve for future use especially if the U.S. and Local Economies continue to languish.
The Chicago City Council will debate the new parking meter fee increases in City Hall today and schedule a vote tomorrow. Passage is likely. Alderman in Chicago Wards with the highest concentration of parking meters – including the North Side 42nd Ward which contains the trendy Lincoln Park Neighborhood of Chicago – support the plan which they feel will bring more city funds to their local jurisdictions.
Local businesses are somewhat concerned that higher parking fees will negatively impact business in an already stressed economic environment but many are resigned to the increase.
Leasing city assets is nothing new here in Chicago. In return for substantial up-front cash payments and long-term leases the city has recently leased to private companies the Chicago Skyway (a deal totaling $1.83 Billion) Downtown Chicago Parking Garages ($563 Million) and Midway Airport ($2.5 Billion). Under private operators Skyway use fees and downtown and airport parking charges have increased as much as 50%.
Read Dan Mihalopulos and Hal Dardick’s Consumer Watch Column in today’s Chicago Tribune for more info.
DEAN MOSS & DEAN’S TEAM CHICAGO
