Chicago Reader

Friday, December 5, 2008

'A bad deal for Chicago'

Posted by Mick Dumke on Fri, Dec 5, 2008 at 11:15 AM

Five aldermen voted against the parking meter lease deal [PDF] Thursday, and one of them, the 32nd Ward's Scott Waguespack, sent constituents an e-mail message this morning blasting the agreement as a big money loser for the city despite the $1.2 billion cash infusion it provides. Here's the message in its entirety:

On Thursday, the City of Chicago signed a 75 year lease of our citywide parking meters with  Morgan Stanley/Chicago Parking Meters LLC for $1.15 billion.

I voted against the sale of this public asset because it was a bad deal for Chicago.

On Monday, we received word from the Mayor's Office that a deal was to be signed with Morgan Stanley. While I did receive the draft ordinance, no financial analysis was forthcoming, so my staff and I put together our own financial analysis to determine if the $1.15 Billion was a good deal or not.

According to our analysis, the city would receive about $1.5 Billion if we sold as is.

If we quadruple the prices of some meters, as Morgan Stanley will do on January 1, 2009, and increase again by 2013, our analysis shows that the actual value over 75 years is closer to $4 Billion.  

During the Finance Committee meeting on Tuesday, I argued that the city was not getting a good deal, and that at a minimum the Council should see the City's numbers. They instead argued our numbers were wrong (without having seen them). I was then told I could see some numbers, but not before the vote. That refusal to provide financial data sealed my NO vote.

Morgan Stanley and LAZ Operators will raise meters from $3/hr to $3.50 Jan.1, and to $6.50/hr by 2013. Neighborhood parking rates that are typically $.25/hr increase to $1/hr on Jan. 1 and increase to $2 by 2013. After 2013, the City must raise rates by a yearly inflation rate to meet contract requirements. The City still receives the increased revenue from enforcement, but the parking meter revenue stream is lost for 75 years.

While the City receives a quick shot in the arm of $1.15 Billion, I believe the alternative; a long term revenue stream from well managed City owned meters would have been a better deal for parking meter users and taxpayers. Selling a major asset that is designed as an urban planning traffic tool while providing a positive revenue stream is simply wrongheaded.

Furthermore, the fact that we fail to maintain a decent cash reserve for a city our size is awful, and I argued during budget hearings that the FY 2009 $1.5 Million reserve (one point five million) was further indication of the need for major structural reforms in the city finances.  (This week's snowfall cleanup cost us about $500,000 for one day, and it is not yet 2009.)  

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Would really need to see the "numbers" on both sides before making an informed comment...but at least we have a brave voice screaming that the emperor has no clothes on. Bravo Waggs.

Posted by JohnnyQ on December 5, 2008 at 11:59 AM | Report this comment
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WAGUESPACK FOR MAYOR 2011 Great job Alderman Waguespack, someone to at least inform the taxpayer what is right and what is wrong.

Posted by Chicago Voter on December 5, 2008 at 1:02 PM | Report this comment
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I would tend to agree with the alderman's assessment. If the city is really hurting for money, why can't it raise meter rates without selling the whole system to an outside entity? What is Daley smoking? On the other hand, maybe this will provide a boost for public transit as I and my fellow suburbanites choose not to drive to the city.

Posted by RolloRunner on December 5, 2008 at 1:17 PM | Report this comment
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" ... no financial analysis was forthcoming, so my staff and I put together our own financial analysis to determine if the $1.15 Billion was a good deal or not." WOW!

Posted by Hugh on December 5, 2008 at 1:58 PM | Report this comment
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Daley is smoking our future for the benefit of his friends and family. The US Attorney sits with his thumb in his ass!!!

Posted by Someone who knows.. on December 5, 2008 at 2:00 PM | Report this comment
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'A bad deal for the city' A majority of us (by 122 votes) in the 32nd Ward like to do our own thinking. Joe Lake, Bucktown

Posted by Joe Lake on December 5, 2008 at 6:12 PM | Report this comment
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Isn't this obvious that this is a bad deal??!!!! I just don't understand how any alderman voted for this. Who were the 6 that voted againt.

Posted by Tino on December 5, 2008 at 6:41 PM | Report this comment
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The $4 billion must be a lower estimation. The numbers have to be higher, but at least he knows the Mayor is lying about the cost to taxpayers. This mayor needs to go.

Posted by Lon on December 5, 2008 at 6:55 PM | Report this comment
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Good vote for an Alderman that can't fix a pothole, make a decision or have any kind of functional ward office. His constituent service is a joke.

Posted by Craig on December 5, 2008 at 8:55 PM | Report this comment
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The US atty is still looking at the bad daley deals. They have so much to work on in the city. We need more aldermen willing to cast a no vote when daley tries to sell the city for his crooked friends and the combine. If he stopped wasting money on bad deals we would have the money to fix the wreck of a city.

Posted by Our US Atty on December 5, 2008 at 9:05 PM | Report this comment
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the "Street Name"of "PUBLIC OFFICIAL DERANGEMENT SYNDROME"

Posted by "HUGHITIS" should be.. on December 5, 2008 at 10:01 PM | Report this comment
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Alderman Scott Waguespack is a fresh new face that I voted for in the last election. The last Alderman was a crook, and everytime you called the ward office they did nothing. With Alderman Waguespack, you call up with a problem, he comes out himself to help. Great job Scott , keep the mayor in line.

Posted by 32nd ward resident on December 5, 2008 at 10:09 PM | Report this comment
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Go Scott, run for Mayor!

Posted by 32nd Ward Voter on December 5, 2008 at 10:11 PM | Report this comment
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I do not, it is all over!

Posted by Who cares anymore? on December 5, 2008 at 10:15 PM | Report this comment
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I care. Finally someone to spell out what a ass-hole Mayor Daley is with his stupid budget ideas. All he wanted from this meter deal was he took care of his friends at the expense of the taxpayers. Also he hurt a future revenue source. Alderman Waguespack is getting the attention he deserves because he did what Alderman of the City Council are supposed to do, look out for the taxpayers to insure that they are not getting screwed!

Posted by Frank Coconate on December 5, 2008 at 11:04 PM | Report this comment
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the word from some other reports is the number could be higher but daley doesn't care. he needs the money now for the olympics!! Daley has lied for years and now someone has called him out on the lies.

Posted by analysis on December 5, 2008 at 11:06 PM | Report this comment
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So all he needs is another 25 aldermen to figure out the same thing. Good luck. This daley deal will screw our kids and their kids. Daley himself said it, I don't care about people in 2050, I care about now!! I need the Olympics! I need you taxpayers dolars now you suckers. All you people who voted for me stay in line!!

Posted by Lou on December 5, 2008 at 11:26 PM | Report this comment
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Sign this W guy up to run for Mayor. years of Daley stealing tax dollars needs to end.

Posted by W on December 5, 2008 at 11:37 PM | Report this comment
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Who is this Scot Whatsamacallit ? He must be listening to Frank Coconatti. Read my Sat. columns!

Posted by Fran Spunkman Chicago Sun-Shine on December 6, 2008 at 7:43 AM | Report this comment
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I really do not get the math here, why could we not raise the damned meter fees and call it a day? My god, how daley is just fuggin Chicago up.

Posted by B K Ray on December 6, 2008 at 8:56 AM | Report this comment
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The math that Daley sold this at is ridiculous. He mortgaged this away like some greedy jerk getting ready to take his walk in the sun. I cannot believe I ever trusted this fool to do what is right. All the other deals looked good, but it was because none of the people asked questions. this is so blatantly obviuos that he sold it to a corporation that will raise rates 4x overnight and walk away with our money. The FBI should go back and look at every one of the other "good deals" this idiot made in the last few years.

Posted by brad c on December 6, 2008 at 9:55 AM | Report this comment
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Where will chicago be after the mayor sells us to the rest of the world for HIS olympic dream? Has anyone ever held any community meetings about whether we really want to be sold off as daley has done? Did he sell our children's children?

Posted by Kelly on December 6, 2008 at 11:35 AM | Report this comment
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"Change Chicago" will be having meetings starting in Spring 2009. We will be going into every neighborhood in Chicago to see what issues are important to the people of Chicago. Than we will be ready in 2011!

Posted by Frank Coconate on December 6, 2008 at 1:23 PM | Report this comment
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This is a stupid move to sell off all of the city owned property. When will the city have people who represent us who are not crooks? They sell everything or give the special deals to their mafia friends and it is not different than the days of al capone.

Posted by Jess on December 6, 2008 at 1:57 PM | Report this comment
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Mayor has a the legal right to decide whats best for this city,regardless of the clamor from malcontents like Frank Coconate. Change Chicago . Don't make me laugh. He could not change his own block,much less the city. Mayor Daley is our steward. He will steer the city in the right direction.

Posted by 11th Man on December 6, 2008 at 3:15 PM | Report this comment
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Coconuts does not have an original bone in his body. This "Change Chicago" going to each community bullshit is the same thing Congressman Jr. tried to do with his "Listening Tour" before he pussied out of the Mayor's race.

Posted by Orion on December 6, 2008 at 6:33 PM | Report this comment
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I love the attention when I start something. The daley boys get all twisted!

Posted by Frank Coconate on December 6, 2008 at 7:59 PM | Report this comment
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I miss Darcel Beavers, she was brilliant. Not a hint of nepostism there. I once met Bill Beavers. I was so in awe of him I just bowed my head. I wasn't worthy of breathing the same air as him.

Posted by Orion on December 6, 2008 at 11:55 PM | Report this comment
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Morons 11TH Man,and Orion. Daley-uped freaks whom think Daley 's turds are gold. Remember all good things come to an end,eventually.

Posted by Justice Jones on December 7, 2008 at 9:37 AM | Report this comment
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Real justice will come when Daley is gone. That family has robbed the citizens of this city for decades while making it look pretty to cover it up.

Posted by Real justice on December 7, 2008 at 10:49 AM | Report this comment
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http://www.chicagoclout.com/

Posted by IT IS THE WAY IT WORKS on December 7, 2008 at 4:09 PM | Report this comment
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http://www.youtube.com/watch?v=ezWwmRFyctY. relax and enjoy.

Posted by Bridgeport Bob on December 7, 2008 at 5:29 PM | Report this comment
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IT IS THE WAY IT WORKS, How would you know City Plumber Patrick McDonough, you live at 1970 Everett in DesPlaines. Your Sheman Wife is running for mayor in DesPlaines and you got a DUI in Rosemont going home to DesPlaines. So why would you care how the streets are inn Chicago when you don't live here!

Posted by Attorney Jon Loevy on December 7, 2008 at 6:21 PM | Report this comment
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"I was then told I could see some numbers, but not before the vote. That refusal to provide financial data sealed my NO vote." wow - that's almost like, like well-reasoned and insightful so - the 40 that voted "aye" - none of them saw the numbers?

Posted by Hugh on December 7, 2008 at 9:30 PM | Report this comment
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http://www.ripoffreport.com/reports/0/386/ripoff0386774.htm Afriend of yours

Posted by To Coconate on December 7, 2008 at 10:21 PM | Report this comment
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In these financially troubled times to ease the burden on you posters I will donate a piece of toilet paper http://bp0.blogger.com/_vmpSO2BbYCE/SJQE5MPW45I/AAAAAAAACGA/9BqY36YYXm8/s1600-h/daley+jfwd.jpg

Posted by Todd Stroger on December 7, 2008 at 10:35 PM | Report this comment
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Sorry if I'm rehashing old news but I (along with the rest of the public) hadn't heard much about the sale of the meters until very recently. When I started thinking about this, I realized there may be something fishy going on. I hate to see the citizens being taken advantage of by "businesses as usual" in Chicago. There appears to be a desperation on the part of the mayor to fill budget holes and make the city appear financial viable for Olympics consideration. I would highly recommend that someone take a look at 14th Street just west of Roosevelt and north of Ashland Ave. Over 1000 meters have appeared there and on surrounding streets (from Ashland to Damen) in the past month or so in a total wasteland. There's absolutely no business or residential to make use of them. I cannot imagine they are anything but an attempt to pad the meter totals for pending purchase. Imagine the cost to taxpayers of a thousand meters and their installation. Then, the cost to remove and install again if any construction is indeed done in the area. And I'd be willing to bet this isn't the only location. I actually wrote to several of the LAZ Parking executives when this first occurred to me. Subsequently, I realized that they may be "in on the deal" and this may be a deal with the city to defraud the investor, Morgan Stanley. Someone's getting their palms greased here and we are paying for it big time. Just some thoughts. I think it's scary to many Chicago residents that something like this could be railroaded through so quickly. Not to mention mortgaging our children's future as well as the catastrophic ramifications for small businesses throughout the city.

Posted by Jay on December 8, 2008 at 9:51 AM | Report this comment
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Coconate and Hugh is that Frank has the Courage to RUN FOR OFFICE,wheras Hugh sits at his keyboard and WHINES, DISTORTS, SMEARS,AND SLANDERS WITHOUT ever having the INTEGRITY put himself out there in Public Service. Hugh, Whining and drawing FALSE DISTORTED Conclusions about those with the COURAGE TO SERVE, and SPREADING YOUR DISTORTIONS,makes you NOT A GOOD CITIZEN, but rather a PUBLIC NUISANCE!!!

Posted by Hugh, on December 8, 2008 at 11:46 AM | Report this comment
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Not too impressed with 'new guys' take on what a 'deal' is. Let's put it this way - you can talk all day long about how much you COULD make until you actually try to run the operation. I believe you used "well managed" in your letter? If this system was well managed at all from the beginning we wouldn't be having this discussion! I think Daley sees an opportunity to actually get cash for something NOW, when we really need it, that he would otherwise not get for many years in a badly managed environment. I do agree that if the city "well managed" the parking meters and kept the contract it would be better for us overall... but we didn't come up with that solution did we?

Posted by KeyboardCowboy on December 8, 2008 at 4:39 PM | Report this comment
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A deal is a deal in Chicago. No one should know what the numbers are before voting so no one can claim they were part of a bad scheme to ruin the city. i.e. soldier field, meigs field, hired truck, the list goes on. taxpayers dollars wasted by one man. Richie Daley.

Posted by The deal on December 9, 2008 at 11:15 PM | Report this comment
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What the governor has done is nothing compared to the antics of our mayor. This deal was made under the table. Just like most of the deals made by the mayor. We need to boycott the meters. Will the city patrol the meters?

Posted by xcop on January 1, 2009 at 1:35 PM | Report this comment
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At least one alderman had the brains to figure out the deal was bad. A start.

Posted by Good deal on February 7, 2009 at 12:40 AM | Report this comment
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Now there are two studies out there and both say it was a bad deal. when will people realize daley is a highway robber.

Posted by Two people on February 11, 2009 at 6:20 PM | Report this comment

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