Q: What would the Hyde Park Urbanist call $6.50/hour metered street parking in the Loop?
A: A good start.
Not that that's the only relevant consideration for the bill privatizing Chicago's parking meters. My sympathies are with Ald. Preckwinkle and Ald. Hairston, though. They refused to vote for it because the city council had only 72 hours to read and evaluate the bill. And is $1.2 billion fair compensation to the city for 75 years of meter collection?
According to the Tribune, the City of Chicago collected a $18.9 million (net) from parking meters in 2007. That represents less than 2% of the $1.2 billion sale price and if the city simply invested that infusion in a mutual fund (which the city isn't going to do), the return would have easily bested 2% without ever having to touch the principle. So, my back of the envelope calculation is that this will represent more income for the City.
Of course, that hardly takes into consideration the money the City could have collected had we'd simply set the meters at market rates and collected the windfall ourselves. On the other hand, the City had no intention of doing that. So, this represents a backdoor method of pricing street parking about what it should be. Still, I betcha the rates will end up as the worst possible of all political scenarios-- much higher but not high enough that there will be a vacant spot or two on every block.
Such half-measures would negate Felix Salmon's optimism:
Chicago should get much more than $1.157 billion in benefit from this deal. Underpriced on-street parking is the bane of many large cities' existence: it results in a huge amount of needless congestion as drivers circle around endlessly, looking for a spot to park. I wouldn't be at all surprised if the benefits from lower congestion are larger than the up-front cash that Chicago is receiving.
Like Barbara Kiviat at Time Magazine's Curious Capitalist blog, I don't like how the City is allocating the payout. Far better IMO to limit the City to annual spending of the sale price/the length of the contract or some such, so this doesn't disadvantage the city's future revenue streams. Seventy-five years is a long time. And I would have preferred to see the city's commercial street parking divided up and auctioned off to several companies. Nothing particularly complicated with splitting it up along the cardinal directions so that one company has the meters on the north side of streets, another on the south, etc. Then companies then would be competing with each other very directly.
The District of Columbia's neighborhood zoning concerns must be like ours because Matthew Yglesias writes:
In general, the market price of street parking should be very similar to the market price of garage parking. Since a garage is more secure and protected from the elements, that has certain advantages. But a street spot might be more convenient. So you’d be looking at rough similarity. And in parts of the city where there’s no viable market in garage building, that’s a market signal that parking demand is low and therefore street parking should be very cheap. But where garages are charging a lot, street parking should also be expensive. Among other things, that would reduce the need for new construction to be accompanied by expansive parking garages.
Perhaps more important, it would reduce the tendency for conversations about any new development to become immediately dominated by people’s fear of parking shortages. The whole shortage phenomenon is (as shortages tend to be) a symptom of bad pricing policy. Chicago is a big city with a vibrant downtown and tons of economic activity. Space is limited and expensive. Unless you charge more than a quarter for it, you’ll get shortages.
Not everyone feels this way, of course. Did you know there was a blog all about parking issues and fighting parking tickets in Chicago? Let me introduce you to The Expired Meter, where cheap street parking and the resulting shortages is more than just a tradition; it's a right:
But when you take this parking meter deal, and look back at what else the mayor has done to kick drivers in the ribs in 2008, it’s jaw dropping.
*Lowered the Denver boot threshold from three to a paltry two unpaid tickets.
*An additional 22% premium tacked onto unpaid parking tickets to cover the alleged cost of collections.
*Installing over 50 red light cameras in 2008, with at least another 50 for 2009, 2010 and 2011 reaching a goal of having red light cameras at a minimum of 10% of all city intersections.
*Initiating a plan to install cameras on all city street sweepers to nail drivers parked in violation of street cleaning bans.
*General increases to the cost of parking ticket fines.
*Increased parking enforcement and the planned hiring of 50 new parking enforcement aides.
*Increase in parking garage taxes.
*Converting all 4000 park district parking spaces into metered spaces.
*Adding 1,250 new metered parking spaces to the near west side.
When you look at all these policy changes implemented by Mayor Daley over the past 12 months, you can see that Chicago is the most anti-driver city in the entire U.S.
Well, when you put it that way, it almost makes it seem like Richard M. Daley is angling for the much-coveted Hyde Park Urbanist endorsement for king or dictator or something really powerful like Mayor of Chicago for life.
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