I see that Hizzoner is finally realizing his life-long dream of
Morgan Stanley's $11 Billion Makes Chicago Taxpayers Cry
Chicago drivers will pay a Morgan Stanley-led partnership at least $11.6 billion to park at city meters over the next 75 years, 10 times what Mayor Richard Daley got when he leased the system to investors in 2008.
Morgan Stanley, Abu Dhabi Investment Authority and Allianz Capital Partners may earn a profit of $9.58 billion before interest, taxes and depreciation, according to documents for a $500 million private note sale by their Chicago Parking Meters LLC venture. That is equivalent to 80 cents per dollar of projected revenue. Standard Parking Corp., which runs 30,000 spaces at the city’s O’Hare and Midway airports, earned 4.84 cents on that basis last year, data compiled by Bloomberg show.
The deal illustrates how Wall Street banks, recipients of more than $300 billion in taxpayer bailouts in the worst credit collapse since the Great Depression, are profiting from helping states and cities close record recession-induced deficits by selling bonds and leasing public properties. Chicago gave up billions of dollars in revenue when it announced in 2008 that it leased Morgan Stanley its 36,000 parking meters, the third- largest U.S. system, for $1.15 billion to balance its budget, said Alderman Scott Waguespack.
On the minus side, the business he has chosen to run it like is the hellbeast mutant spawn of WalMart and Enron.
If you're interested in a little, local, foul-mouthed and highly subjective back-story from yours truly regarding how my city got this fucked up, may I suggest:
The First Rule of Clout Club.
Of Sin Eaters and Parking Meters.
Plate Sin with Gold.
The Clout Burglars.
And in case you were worried, no, this will have no effect whatsoever on Hizzoner's future bid for a seventh term as Mare For Life of the Great City of Chicago: a campaign in which I fearlessly predict he will run for a few weeks as a -- no kidding --maverick outsider populist, during which he will publicly debate no one, and after which he will once again triumph with numbers so lopsided they would make the late Saddam Hussein blush.