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re: "A lesson in worst business practices' presented by the city of Chicago
Posted on 6/6/25 at 5:42 pm to Lakeboy7
Posted on 6/6/25 at 5:42 pm to Lakeboy7
quote:This is Chicago.
I suspect by law some of that had to go to municipal bonds, some of those get breaks on taxes.
They probably signed a contract where this UAE company gets every dime.
1
Posted on 6/6/25 at 5:49 pm to TigerintheNO
Whose wife/BIL/child is on the board of that private firm?
Posted on 6/6/25 at 5:56 pm to Scruffy
quote:
This is Chicago.
Just stay in the bubble around the lake, all good. Really nice.
Posted on 6/6/25 at 5:57 pm to TigerintheNO
Take a look how much in tolls were paid on the GNO when it was supposed to stop after the bridge was paid for. How much do think is going to be paid in tolls for the Belle Chasse Bridge to a private company? 
Posted on 6/6/25 at 6:01 pm to bbap
quote:
If you understand time value of money at all, this is a fantastic deal Chicago made.
It’s only a good deal if you invest it which Chicago didn’t do.
Posted on 6/6/25 at 6:02 pm to soccerfüt
quote:
Here’s the seminal (heh-heh) tome on the subject. Quality reading on an admittedly extremely dry subject.
Shoup (R.I.P.) nailed it here.
Posted on 6/6/25 at 6:16 pm to Auburn80
quote:
It’s only a good deal if you invest it which Chicago didn’t do
No that has nothing to do with the economics of the deal. Like I said they could just as easily blow all the money from the proceeds of the yearly meter revenue too.
Posted on 6/6/25 at 6:19 pm to Auburn80
quote:
It’s only a good deal if you invest it which Chicago didn’t do.
You sure? usually when you sell/encumber a city asset like that a % has to go in muni bonds.
Posted on 6/6/25 at 6:23 pm to TigerintheNO
Morgan Stanley doesn’t do stupid shite that loses money…..but they certainly will benefit off of dumbasses that do.
Posted on 6/6/25 at 7:02 pm to bbap
quote:
No that has nothing to do with the economics of the dea
Yes it does. The net income to the investors is a lot more than 9 billion plus the city still has to make payments to compensate for parades and events. Add in the fact that Chicago cannot develop any of that property and take away any meters and the economics get worse.
Posted on 6/6/25 at 7:18 pm to Shexter
I think are looking at this the wrong way. If you take out a loan for 1,157 and make 75 annual payments of 161, that's somewhere around a 13.9% interest rate. The city should have been able to get a better rate issuing bonds with the parking meter revenue being dedicated to pay off those bonds.
Posted on 6/6/25 at 7:23 pm to bbap
quote:
If you understand time value of money at all, this is a fantastic deal Chicago made.
Are you suggesting that money wasn’t immediately spent?
Daley absolutely screwed Chicago with this deal and the Soldier Field renovation. They owe more money on it now than they originally borrowed and they’ve been paying it for twenty years.
Posted on 6/6/25 at 7:25 pm to Scruffy
quote:
A private group runs the parking meters in a major American city and enforces laws on the citizens. What a retarded system.
City parking enforcement enforces the laws and gets the money for any tickets written. The consortium just gets the parking revenue.
Posted on 6/6/25 at 7:27 pm to Shexter
quote:
$1.157 billion invested should easily produce more than 9 billion in 75 years.
The time value of money applies to the money the parking consortium is making as well.
Posted on 6/6/25 at 8:13 pm to bbap
quote:
If you understand time value of money at all, this is a fantastic deal Chicago made.
They didn’t invest that money to spend over time. They spent it to plug near term budget shortfalls and then lose that income stream for 75 years
And btw the $9 billion over the life of the deal is a ridiculously low estimate, it’s not like hourly parking rates will stay unchanged for the next 6 decades.
This post was edited on 6/6/25 at 8:17 pm
Posted on 6/6/25 at 9:17 pm to Shexter
quote:
$1.157 billion invested should easily produce more than 9 billion in 75 years.
Yeah but think what the price of eggs will be in 75 years.
shudders
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