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Kankakee has a lesson for the city
Wednesday, Nov 10, 2010 * I was born in Kankakee. Like many small cities, Kankakee installed parking meters downtown decades ago to generate revenue and prevent people from parking too long in front of stores. And, like many small cities, Kankakee’s downtown quickly went to pot. It didn’t take long before they had no more stores. Some Chicago businesses are now starting to freak out about what could happen to them…
That’s an excellent point. For shops which sell low-priced items like sweet rolls, who’s gonna pay through the nose to park? And get this response from the alderman…
Such empathy. * Parking meters alone didn’t destroy Kankakee’s downtown. Shoppers’ preferences shifted to malls. But the town’s oldtimers are still upset at the way those meters were installed, and that’s been maybe 40 years ago. So if Kankakee is any guide, then this is not an issue that will ever go away in Chicago. And the way the contract is written, those meters will continue to spread throughout the city. The company will have two ways to increase revenues, jack up parking rates or install new meters. It’s not gonna be pretty either way, and it’s going to be both ways. I don’t think many people care about the meters in the Loop. You can actually find street parking at times now. But the Loop is essential. People have to go there. They don’t necessarily have to stop in for quick roll at North Shore Bakery on Touhy, although in my view it’s an excellent place to find tasty treats. * I derided the study conducted last year which found that Chicago could’ve made more money if it had just raised parking rates itself without contracting it out to a private firm. The fatal flaw with the study, I wrote, was that aldermen would either never have been so foolish as to raise the rates and vastly expand meter placement themselves, or they would’ve been forced to instantly annul the ordinance once the public figured out what happened. But by going this privatization route and by spending pretty much all the company’s money up front, the city is now stuck. What it needs to do now is figure out how to get itself out of this contract or drastically modify it or little Kankakees are gonna sprout up all over the neighborhoods. And, take it from a Kankakee native, that’s not a good thing.
- Posted by Rich Miller
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- bdogg - Wednesday, Nov 10, 10 @ 9:25 am:
Privatization of public assets is what the IMF makes developing countries do if they want loans. Nice to know one of the major cities of a “developed” country is doing the same thing. So sad. Daley didn’t run again because his butt would’ve gotten beat. What a disaster.
- Anonymous - Wednesday, Nov 10, 10 @ 9:43 am:
Real irony in the revenue enhancements supposedly brought about by these parking meters will be offset by the loss of revenue from the businesses that go away or are diminished because of the parking meters. Down the road, so to speak, the businesses that gave people a reason to park on the street will be gone, thus reducing the need for parking on the street and thus reducing the revenue generated by the parking meters, and thus possibly driving the parking meter company out of business itself. “. . . careful with that axe, Eugene.”
- wordslinger - Wednesday, Nov 10, 10 @ 9:47 am:
Downtown Main Streets are tricky, particularly in areas where it was easy to just build new on cheaper land.
The only sure winner in any privatization deal is the same as in any financial deal, the broker or underwriter. They take their percentage upfront and are done with it at closing.
Somewhere down the line, you can bet the city will be looking to purchase the meters back — and they’ll have to finance that, too, so the underwriters will have another payday.
- Doug - Wednesday, Nov 10, 10 @ 9:53 am:
Same can be said for the high earners…..keep raising the state income tax and they will leave the state.
- walter sobchak - Wednesday, Nov 10, 10 @ 9:55 am:
You would think that government would realize at some point that they are dealing with Americans, not peasants. Pass any coercive ‘well meaning’ law, pass any unfair tax, create more regulation of human behavior, and the kind of people who left the safety of homes elsewhere to come to America will circumvent them or ignore them. Forced bussing: flight to suburbs and the death of public education. High taxes: tax shelters, barter, and an underground economy. Parking meters: fewer shopping trips, shop within walking distance, or don’t go shopping at all. The War on Drugs: an illegal industry that is destroying Mexico and ultimately corrupts us all.
- scafish - Wednesday, Nov 10, 10 @ 9:56 am:
What I hate is that they don’t take bills. Sometimes my bank balance doesn’t allow me to use my debit card and then I am stuck trying to find quarters to feed the meters.
- just sayin' - Wednesday, Nov 10, 10 @ 9:57 am:
Fair points. Although I think malls and big box stores have had more to do with the decline of downtown shopping in small towns. It’s a painful transition for some, but consumers seem to be voting with their feet and cars.
Chicago almost killed State Street back in the late 80’s when it banned cars and made it just a bus route. The city eventually ended that experiment. Anything that depresses energy is bad. Parking meters definitely can do that.
- Rich Miller - Wednesday, Nov 10, 10 @ 9:59 am:
===keep raising the state income tax===
Keep raising it? The state income tax hasn’t been raised in well over 20 years. It’s not like we have a pattern here.
- Transit Supporter - Wednesday, Nov 10, 10 @ 10:08 am:
Some are getting a little over the top. Chicago’s most successful non-Loop shopping districts - Lincoln Park, Lakeview, Bucktown-WP, Little Village, Pilsen, Hyde Park, Little Italy - all already have parking meters. So the threat of getting a ticket while picking up a snack has been there for a while. Those areas seem to be dealing with the issue. I am not shocked those who never had a meter are bummed about it, but that does not mean the sky is falling. Do I like the deal, no, but is the concept of paying for parking on a public street a threat? No.
- Niles Township - Wednesday, Nov 10, 10 @ 10:12 am:
Stone is cooked. Ira Silverstein’s wife is going to take Stone’s seat. I bet the meters on this block disappear when that happens.
- Lakefront Liberal - Wednesday, Nov 10, 10 @ 10:14 am:
Currently there is a lawsuit seeking to overturn the parking meter lease deal (it is being brought on behalf of IVI-IPO). Though it would be extremely painful for the city to give the money back they might, in the end, be thankful for a way to get out of this deal.
There is also a proposed referendum for the February municipal election ballot asking voters if the parking meter deal should be re-negotiated. If it makes it on the ballot my only question is if it will pass with 98% of the vote or 99% of the vote.
- Amalia - Wednesday, Nov 10, 10 @ 10:19 am:
whatever the contract, the City should have an ongoing relationship with the company and have regular conversations about how the operation is working. while they may have no contractual opportunity to stop such situations from happening (but I would look if I were the Revenue guru) they can certainly have conversations about the wheres and whats of how the contract is handled.
if we are to believe the mayor, the revenue generated from this contract is greater than what other municipalities are getting now. that is no small matter. so put good lawyers on to a close read of the contract, watch how it is being administered, look for mistakes by the company, and try to mitigate by managing.
- Plutocrat03 - Wednesday, Nov 10, 10 @ 10:25 am:
“forced to instantly annul the ordinance once the public figured out what happened”
Isn’t that what democracy is all about. When the elected officials do something the voters do not care for, the officials should be held accountable.
The lawmakers protected themselves from votes on their salaries to avoid voter ire. Similarly this inappropriate meter privatization allows them cover when the evil parking meter company moves to expand it’s revenue stream.
- lake county democrat - Wednesday, Nov 10, 10 @ 10:26 am:
Stone’s a jerk, but Rich, I think city downtown shopping districts have declined more as a result of other factors (competition from walmart and other discounters, advent of indoor shopping malls, etc.) than the parking meters. Downtown Evanston had parking meters from at least the 60’s forward and it was plenty vibrant until the 80s and has enjoyed a revitalization in the last decade. Meanwhile, no amount of free parking alone would help Downtown Waukegan…
- lake county democrat - Wednesday, Nov 10, 10 @ 10:27 am:
PS - really, old timers still complain about that? Both funny and endearing.
- 47th Ward - Wednesday, Nov 10, 10 @ 10:28 am:
From the story: “The alderman of the ward, Bernie Stone (50th), says the new metered parking was put in on Touhy because several pay boxes had been removed for various reasons along nearby Devon Avenue.”
So my question is, what were the “various reasons” behind reducing the number of parking spaces on Devon? The Alderman better hope those are really, really good reasons or else it might look like he is picking parking winners and losers in his ward.
As for Kankakee, I grew up there too Rich, and if there is one thing Kankakeeans are good at, it’s complaining. They are also notoriously cheap people in my experience. Out of pure spite, they’d rather spend a dime’s worth of gas to drive to Bourbonnais than plug a nickle in the meter to shop in Kankakee. There are plenty of reasons downtown Kankakee tanked, but parking meters were the least of it.
- Skeeter - Wednesday, Nov 10, 10 @ 10:29 am:
Doug, speaking as one of those high wager earners the past few years, I can tell you that I pay less taxes here than in almost any other state. I’m not going anywhere, but if I were to go, taxes would not be the slightest factor. So stop whining.
- Skeeter - Wednesday, Nov 10, 10 @ 10:34 am:
By the way — I’m with Transit Supporter on the merits. The parking meter deal is bad financially, but the idea tof parking meters is not. With regard to those merchants — the alterntive in most areas is that residents put their cars in the area, so no parking is possible. At least with meters, people might find a space.
And, I must add, Bernie Stone saying something ridiculous? That’s certainly new. He always seemed so charming and rational.
- EazyTurner - Wednesday, Nov 10, 10 @ 10:36 am:
But if Kankakee can get twin Gazeebos from David Letterman out of it’s rough ride, who knows what prizes await Chicago!
- Pat Robertson - Wednesday, Nov 10, 10 @ 10:36 am:
This should be a warning for the semi-privatization of the lottery. How is private management going to generate more money for the state? Cut expenses? The overwhelmingly largest expense is paying winners. The state could increase the odds or reduce the payout just as easily as a private company - the math is simple. Or increase sales? What will they do that the state could not do to increase sales? Or, to bring it back to putting parking meters in places where it hurts business, what will they do that the state has wisely chosen not to do?
- Pot calling kettle - Wednesday, Nov 10, 10 @ 10:38 am:
Quite a few small towns removed their parking meters to help businesses stay open in their downtowns.
Perhaps these concerned businesses could cut a deal with the parking meter firms to keep the meters out. A little renumeration might be in order…I mean, nobody wants to see parking meters in front of your store, if you know what I mean. Think of it as insurance, you pay a little every month and everybody stays happy.
- Responsa - Wednesday, Nov 10, 10 @ 11:04 am:
Rich is absolutely right about Kankakee. Back in the day there was a multi block thriving and interesting business district. People around the wider area came to buy their shoes, winter coats, baseball gloves, swim suits and then capped off the day of shopping with a nice restaurant meal in KKK. Almost all of these were established, independent family owned businesses.
The advent of paid parking didn’t singlehandedly kill KKK’s downtown but it shortened its viable life. Keeping track of the “hours” and interrupting your current activity to go out and feed the street meter again and again in all weather made malls with spacious parking lots such as Meadowview increasingly attractive to shoppers even though many of the stores there were chains and of lesser quality and interest.
So Chicago, since your sales tax has been so popular, if you want to further stress small business owners and contribute to the demise of the unique but struggling specialty businesses out in the neighborhoods, just keep on allowing the parking boxes to push shoppers to the convenience of the free parking lots at malls and big box stores in the burbs.
- ghost - Wednesday, Nov 10, 10 @ 11:14 am:
Pot, you mean if the parking meter people have all the judges and politicians in their pockets they should share…with a bill for their services, we are not communists after all.
The city just wants to wet its beak a little
- Vote Quimby! - Wednesday, Nov 10, 10 @ 11:14 am:
Mentioning K3…did the builders who illegally dumped asbestos in Harvard Park ever go to trial?
- Rich Miller - Wednesday, Nov 10, 10 @ 11:20 am:
If you mean Hopkins Park, the answer, I believe, is no.
- zatoichi - Wednesday, Nov 10, 10 @ 11:21 am:
Doug, I am with Skeeter. Go live in another state and their tax issues. Tax, fees, fines, assessments, call them what you want. I have lived in several states. Taxes were never the deciding factor in moving.
As for parking meters, privatization is simply CYA for politicians. No meters where I live but the landlocked downtown area died when Sears, JCP and others needed bigger buildings to compete. The retail district simply moved 3 miles south and transformed into strip malls. No meters required.
- Vote Quimby! - Wednesday, Nov 10, 10 @ 11:37 am:
Hopkins Park…thanks.
- The Doc - Wednesday, Nov 10, 10 @ 11:49 am:
==The lawmakers protected themselves from votes on their salaries to avoid voter ire.==
Voters aren’t going to blame Morgan Stanley or LAZ - they’re going to blame their elected representatives. It doesn’t matter who (or what) specifically installs new meters or raises rates.
Look at the media accounts of this particular story. Bernie Stone is taking the heat, not the concessionaire. I’ve been mystified why the city council assumed putting a faceless business entity between themselves and the electorate would somehow shield them from the fallout.
- Pot calling kettle - Wednesday, Nov 10, 10 @ 12:45 pm:
==you mean if the parking meter people have all the judges and politicians in their pockets they should share==
They don’t have to have anyone in their pocket. They can choose to put (or not put) meters whither they will. It might be cheaper for them to go to the businesses along a street and suggest that for a small fee, they will not put up meters that could discourage customers. I can see how this could turn into a protection racket. Time will tell.
- x ace - Wednesday, Nov 10, 10 @ 1:35 pm:
Thought Downtown K3 died because Cops harassed Kids
Ridin the Square and everybody went out to Ron’s in Bradley
- Anonymous - Wednesday, Nov 10, 10 @ 10:01 pm:
>That’s an excellent point. For shops which sell low-priced items like sweet rolls, who’s gonna pay through the nose to park?
Rich, this is the kind of out-of-all-proportion quote you often criticize candidates for. “Pay through the nose”? To park and buy your sweet roll, it costs a quarter. Times are tough and all, but seriously. And the dirty secret is that they don’t ticket much in low-density neighborhoods, so you can run in and get your sweet rolls without much worry if you’re short a quarter. I pretty much only pay the meter if I’m staying a while, and I’ve yet to get a ticket.