Chicago Taxpayers Sue over Private Parking Cash Out

Monday, August 24, 2009 , , , 2 Comments

Chicago learns its lessons the hard way. Hopefully it now knows that parking meters are not equity lines of credit to plug their budget troubles.


Chicago's controversial 75-year deal to lease its parking meters to a private operator for an upfront payment of $1.157 billion is now the target of a lawsuit.

Clint Krislov, a Chicago attorney for a group of taxpayers, said on Thursday that a Cook County Circuit Court judge on August 28 will hear their petition to allow the lawsuit challenging the deal to proceed.

"The contract is illegal so we're asking (the court) to block spending tax dollars on it," Krislov said.

Chicago entered into the deal to lease 36,000 parking meters with Chicago Parking Meters LLC, comprised of Morgan Stanley Infrastructure Partners and others, earlier this year.

The lawsuit claims the deal violates the Illinois Constitution by requiring the city to spend public funds to "police, enforce and maintain" what is now a "privately controlled parking meter system."

"After the transaction closed, the city continued to expend public funds to maintain and repair CPM's privately controlled meters based on complaints that a number of CPM's parking meters were disabled, would not take coins, did not properly recognize the coins placed in the meters, and displayed inaccurate parking rates and times of enforcement," the lawsuit stated.

Chicago also overstepped its legal authority granted by the Illinois General Assembly by leasing on-street meters, according to the lawsuit.

The complaint challenges the Illinois secretary of state's legal ability to suspend the licenses of drivers who fail to pay parking fines in Chicago because the meters are now privately controlled.

Good for the taxpayers of Chicago. This is ridiculous.

Morgan Stanley? Ha, that's a cute touch.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


scrat said...

Morgan Stanley Infrastructure...*shudder* But why stop there? Bring on Morgan Stanley Law Enforcement, Morgan Stanley Armed Forces, Morgan Stanley Correctional Services....

Sorry. It's just putting a global bank's name in front of 'Infrastructure', how can ya not reach for the tin foil and make a shiny hat?

"Keep your hands off my infrastructure, please"

where is the line?

somewhere WAY back there. Can we get back to *that* place? I guess we will just have to wait to find out...