City Could Pay $500,000 a Year for Closed Parking Meters

By Amy Perry in News on Feb 5, 2010 8:20PM

Photo by SFMoe

The parking meter lease saga continues, as CBS 2 reports that under the city’s lease agreement with Chicago Parking Meter LLC, it could be paying hundreds of thousands of dollars each year to the company for revenues lost when the city closes metered spaces for street construction, fairs, block parties or other projects. Critics opposed to the lease pointed this fact out as well as 32nd Ward Alderman Scott Waguespack, who voted against the lease. However, this makes of us think of 33rd Alderman Dick Mell‘s remarks during the original vote on the lease about how could he be expected to read the small print. Did those voting for the lease not bother to do just that?

Attorney Clinton Krislov has charged in a lawsuit that the deal is illegal. CBS 2 obtained records that the contract lists street by street the lost income for February, March and April of 2009 totaling more than $106,000. Krislov estimates the city may pay as much as $500,000 a year. A city spokesman said $84,000 was deducted from the company's first claim, to reimburse the city for helping the company through the difficult start-up.