Forum Index            

Cookies Consent Information
SelectSmart.com®
Before you decide
Over 20,000 selectors

Join to post comments.
Share

Is your name welcomed below? Then you are invited to post here: Politics Philosophy Diversions
Selector comment pages: Presidential Candidate Religion Christian Past Lives Philosophy Careers Dog Breeds

Welcome! » Log In » Create A New Profile

Why Does Abu Dhabi Own All of Chicago's Parking Meters?

Posted by x 
x
Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 07:27AM
Privatization of the public commons ALWAYS results in higher prices for the citizenry.

From an article at [www.theatlanticwire.com] -

The city of Chicago has 36,000 parking meters. In 2008, it sold them on a 75 year lease for over one billion dollars. The buyers were led by Morgan Stanley. But as Matt Taibbi reports in his forthcoming book Griftopia, previewed in Rolling Stone, the state-owned investment arm of Abu Dhabi ended up owning a large share -- possibility a controlling majority -- in Chicago's parking meter system.

It was December 1, 2008. That morning would be the first time that the Chicago City Council would be formally notified that Mayor Richard Daley had struck a deal with Morgan Stanley to lease all of Chicago's parking meters for seventy-five years. The final amount of the bid was $1,156,500,000, a lump sum to be paid to the city of Chicago for seventy-five years' worth of parking meter revenue.

...He then gave them the details: he had arranged a lease deal with Morgan Stanley, which put together a consortium of investors which in turn put a newly created company called Chicago Parking Meters LLC in charge of the city's meters. There was no mention of who the investors were or who the other bidders might have been. ... The council at this time has no idea who's actually behind the deal. "We were never informed," says Hairston. "Not even later."


But while the City of Chicago was deliberating on whether to sell their parking meter system to Morgan Stanley--which they ultimately decided to do--the Wall Street megabank was making plans to offload the parking meters to a third party.

[The investment] process involved [Morgan Stanley]'s Infrastructure group going on a road tour to ask people with lots of cash to pony up. It was these guys from Morgan's Infrastructure desk who took their presentation to the Middle East and pitched Chicago's parking meters to a room full of bankers and analysts in Abu Dhabi, the Abu Dhabi Investment Authority, who ultimately agreed to purchase a large stake.

Within two months of selling its parking meters to a coalition of U.S. and Western investors led by Morgan Stanley, Chicago's parking meters came under new, foreign ownership.

So basically Morgan Stanley found a bunch of investors, including themselves, to put up over a billion dollars in December 2008; a big chunk of those investors then bailed out to make way in February 2009 for this Deeside Investments, which was 49.9 percent owned by Abu Dhabi and 50.1 percent owned by a company called Redoma SARL, about which nothing was known except that it had an address in Luxembourg.

Taibbi calls this a "bait and switch" pulled by Morgan Stanley on Chicago. He explains why this is about more than just parking meters. Now if city officials want to do anything that might disrupt parking meter revenue -- let's say close down parking for a street festival or parade -- they need to get the approval of those meters' shadowy, foreign owners. They also need approval to change parking hours or fees. The new ownership has already made unwelcome changes, ending the previous policy of allowing free parking on holidays. But not only did Chicago cede the operation of an entire segment of the city to mysterious private investors -- Taibbi says they could have gotten four times as much money for it, up to $5 billion.


Now see Ridiculous - Parking Prices Shoot Way Up in Chicago

"For the fifth year in a row, the private managers of Chicago's parking meters are gouging us with another rate hike, and we've retained the title of the most expensive parking meters in the U.S. As if that isn't bad enough, the 2013 price surpasses that of Vancouver's, making Chicago's the most expensive parking meters in North America.

"On-street metered parking rates will increase in 2013 to $2.00 per hour for 82% of the city, $4.00 per hour near downtown and $6.50 per hour in the downtown area," a spokesperson for Chicago Parking Meters, LLC told Chicagoist. The transition will start downtown and move outward with all meter prices rising by the end of February."*

Privatized parking meters is now an industry worth billions, and it's become a pricey new trend in major U.S. cities. The prices get increasingly high for the same street facilities and people often find themselves with little choice but to pay. Is this unfair burden shifting?

Video report from TYT at [www.youtube.com]



Edited 2 time(s). Last edit at 01/02/2013 07:35AM by x.
Anonymous User
Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 07:37AM
Yes, why can't Chicago's parking meter franchise be operated by good ol' home-grown organized crime families like they used to be and like they are elsewhere?
x
Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 07:41AM
Maybe you didn't read the first sentence of my lead post. Chicago's parking meters used to be publicly owned - by the city of Chicago.
Anonymous User
Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 10:14AM
X,
I was half joking about the organized crime and parking meters, although I don't doubt that organized crime was at least once in the parking meter business. Parking meters aren't the cash cow you might think. Chicago parking meters are frequently vandalized, often with glue or sand in the coin slot. Broken or jammed meters don't bring in revenue.
Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 11:25AM
If they weren't a cash cow why would Abu Dhabi want them?

-------------------------------------------------------------------
"Every gun that is made, every warship launched, every rocket fired, signifies in the final sense a theft from those who hunger and are not fed, those who are cold and are not clothed."

President Eisenhower
Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 03:33PM
don't stop there -- move on to toll roads, red light cameras...

Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 04:16PM
When the GOP eventually gets the world it wants us all to live in, we'll have to pay a fee to leave our homes in the morning.

Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 04:23PM
Ponderer Wrote:
-------------------------------------------------------
> When the GOP eventually gets the world it wants us
> all to live in, we'll have to pay a fee to leave
> our homes in the morning.


or exhale (CO2)

Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 05:59PM
You people do understand that this was put in place by about the most liberal regime ever right? So ratherthan have the money in American hads we ship it out. HTF stupid is that? Oh, yeah, Libtad stupid.



Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 06:35PM
all it takes is a few crumbs to the local politicos

they rape the public for chump change

[www.thenewspaper.com]

Australian investors panicked yesterday as Redflex Traffic Systems admitted they had been caught by the Chicago Tribune newspaper having committed a serious ethical violation. As the news arrived down under, Redflex shares tumbled 14 percent to $1.76 -- a low not seen since the beginning of the year.

As the Tribune first reported, Redflex spent $910.71 on a luxury two-day stay in 2010 for John Bills, the Chicago official in charge of the red light camera contract. Redflex did announce it had implemented anti-bribery classes for its employees to prevent further ethical lapses -- two years later. Chicago's Department of Procurement Services was not impressed.

Though Redflex is on the hot seat for providing perks to city employees, this remains a common industry practice. In 2010, the Australian firm also put the police chief of Oak Ridge, Tennessee up at the Ritz-Carlton Hotel in return for his favorable testimony at a court trial two years ago.





Edited 1 time(s). Last edit at 01/02/2013 06:36PM by txcup.
x
Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 07:49PM
When the GOP eventually gets the world it wants us all to live in, we'll have to pay a fee to leave our homes in the morning. - Ponderer

It's not just the GOP. Chicago is Dem controlled. Ed Rendell, when he was the gov of PA, tried to sell the PA Turnpike to foreign investors but the PA legislature stopped it.
Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 08:20PM
Red/Blue strikes again - I agree - they're all selling us off one piece at a time. My question is how did a mayor get the power to do something like that? Our mayors are glorified palm pressers - they can't really do anything.
HHH
Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 08:27PM
The city council went along. Perhaps, they should have held out for more details.

____________________________________________
What kind of genius loses a billion dollars in a year?
Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 08:31PM
Or bigger bribes.
Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 09:56PM
I am by no means blaming only the GOP for this specific piece of civic idiocy. But it can't be denied that selling off public assets and programs to the private sector is exactly what the GOP wants done. This is an example of exactly the kind of world the Republicans want to make us live in.

Re: Why Does Abu Dhabi Own All of Chicago's Parking Meters?
January 02, 2013 11:01PM
I've always wondered where the municipality (city, state whatever) gets the rights to all the stuff taxpayers paid for. How do they own it when we paid for it?
Sorry, only registered users may post in this forum.

Click here to login


This forum powered by Phorum

The best cities to meet opposite sex singles

Your 24 easiest weight loss diet options

Why most people buy the wrong laptop computer

Your best college value isn't where you'd guess

Secret to taking quality photos is this camera

Running shoes that won't cripple you or your wallet

16 dog breeds that won't kill your toddler

High earning jobs for low energy people

Which of over 100 cars & trucks is best for you?

Cookies Consent Policy & Privacy Statement. All Rights Reserved. SelectSmart® is a registered trademark. | Contact SelectSmart.com | Advertise on SelectSmart.com | This site is for sale!