Privatizing Parking Meters Rises From Its Grave

City lawmakers thought they had killed it. Even the mayor gave it up for dead. Now a group of aldermen, working closely with a company lobbyist, has unearthed and galvanized a disgraced parking meter monetization plan.

Five aldermen have signed on to a letter supporting a plan under which Gates Capital Partners, an Ohio-based investment firm, would receive a dedicated portion of the city’s parking meter revenue for 25 years, plus interest. In exchange, the company would give pay the city $50 million up front.

The latest effort met resistance from an East Rock alderman and a budget watchdog, who called the plan “deeply irresponsible” and akin to a “payday loan.”

The monetization plan was first put forward more than a year ago, during last year’s budget season. It met an outpouring of opposition: Critics said the plan was a short-sighted quick-fix that would saddle the city with debt for years to come. The plan was eventually shelved.

Meanwhile, Gates continued to work to convince aldermen it was a good idea. The company hired Steve Mednick, a local attorney and former alderman, as a lobbyist.

In November, Alderman Justin Elicker put forward a resolution calling on the city to not spend any more time or resources considering monetization as an option. Eighteen of his colleagues signed on to the proposal, which has been sitting in front of the Board of Aldermen’s Finance Committee ever since.

By March, even the mayor seemed to have given up on monetization.

On April 6, the plan resurfaced. Representatives from Gates appeared before the Finance Committee to re-pitch the plan and rebut some of the arguments against it. They were there at the request of Alderman Yusuf Shah, the chair of the committee, who said the city’s dire fiscal outlook is prompting him to put all options back on the table.

On Thursday, Shah—along with Alderman Marcus Paca and Alderwoman Bitsie Clark—emailed a draft of the letter to their colleagues, calling on them to give monetization a second chance. By Monday morning, Aldermen Migdalia Castro and Tom Lehtonen had signed on.
 

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