Stonepeak Partners may soon control Chicago’s parking meter revenue long into the future. Private equity firms like Stonepeak, based in New York’s Hudson Yards, often shy away from publicity. Stonepeak manages $88 billion in assets but has not commented on the Chicago City Council deliberations regarding the approval of the sale of Chicago Parking Meters LLC to Stonepeak.
The original parking meter deal in 2008, overseen by the Daley administration, was criticized for fiscal mismanagement. Chicago gained only $1.15 billion from the 75-year lease of 36,000 parking meters, while Chicago Parking Meters LLC, a consortium including Morgan Stanley, Allianz Capital Partners, and the Sovereign Wealth Fund of Abu Dhabi, mostly recovered its investment by year 18.
The City Council will need to approve the transfer of ownership to Stonepeak. Some argue against allowing the continued monetization of this deal. The council could potentially impose conditions on the sale, such as removing convenience fees tied to the parking app, waiving unrealistic fees during city events, or adjusting costly evening parking rates that affect arts audiences.
Stonepeak’s website highlights investments in infrastructure that offers social utility. However, the parking meter deal does not align with this mission, offering more profit to investors than community benefits. The company faces risks such as potential city default and reduced parking demand caused by autonomous vehicles.
Stonepeak did not originate this deal but has the opportunity to distinguish itself by offering concessions and engaging with the City Council. By doing so, Stonepeak can demonstrate a commitment to Chicago’s economic growth and prove its stated values.
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