Chicago City Council Approves $2.53 Billion Parking Meter Sale

The Chicago City Council voted 46-3 on Tuesday to approve a $2.53 billion sale of the city's parking meter lease to New York-based Stonepeak Partners. The deal transfers ownership of 36,000 meters from a Morgan Stanley-led investor group, avoiding a month-end deadline that threatened a costly legal battle.

Under the revised terms, the city will receive a $75 million upfront transfer fee to address unfunded pension liabilities, a 5% share of future net income projected at $376.2 million over the remaining 57 years, and a 2% fee on any future resales before 2084. The agreement also allows the city to take meters out of service for special events up to seven times a year without paying compensation. To secure the deal, Stonepeak sold Omni Air International, a company previously criticized for conducting federal deportation flights.

The approval follows months of tension after Mayor Brandon Johnson abandoned a bid to buy back the meters due to a $3 billion price tag and political risks. While Johnson and Finance Chair Pat Dowell praised the agreement as an improvement over the widely criticized 2008 lease, some council members dissented. Jason Ervin and William Hall were among those who voted against the measure, with Ervin arguing the $75 million payment was a pittance compared to the concession's total revenue.