Available for Lease

The City of Chicago has led the way in the U.S. on leasing public facilities to private interests in exchange for big money. The latest municipal asset to go on the privatization block is Midway Airport, expected to be a 99-year deal.  Bids are due within a month, but given the declining market, bids will likely be below the $3 billion projected, according to The Chicago Tribune.

Bids are also expected soon on Chicago parking meters and the city's recycling plants.

Previously, the Chicago Skyway was leased for 99 years for $1.83 billion, and Chicago parking garages were leased for $563 million.  In both cases, costs to citizens for their use have increased.  However, Mayor Daley took proceeds from the Skyway and paid down the city'd debt and put aside $500 million for a permanent reserve fund that raised the city's credit rating and lowered borrowing costs.  Another $100 million was spent on social programs.

  

payton, September 9, 2008

what the blog post neglects to mention is the crux of the Trib's story, though: that such eye-popping numbers are, according to some financial experts, still selling taxpayers well short. the city would make far, far more money from these assets by managing them well -- which does not require foregoing future revenue, and citizen control, by signing over title to these assets to faceless corporations.

Link: http://westnorth.com

Post a Comment

Name:* E-mail Address: URL:

Comment*

Please type the word below*

Please leave the following field blank:

*Required fields (your email address will not be published)