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Related: About this forumOn Privatization's Cutting Edge
http://www.thenation.com/blog/176043/privatizations-cutting-edge#On Privatization's Cutting Edge
Rick Perlstein on September 5, 2013 - 3:08 PM ET
Last week, for the opening of the school year, I wrote about my interview with Tom Geoghegan about his (so-far) failed suit to stop Mayor Rahm Emanuels morally and educationally disastrous crusade to close fifty schools in Chicago. But thats not all I talked about with Tom. I dont want this just to be a Mayor Emanuelbashing session, I said. Because we have to bash Mayor Daley.
Everyone, I suppose, dislikes parking meters. Chicagoans hate them even more. Thats because Mayor Richard M. Daley in 2008 struck a deal with the investment consortium Chicago Parking Meters LLC, or CPM, that included Morgan Stanley, Allianz Capital Partners and, yes, the Sovereign Wealth Fund of Abu Dhabi, to privatize our meters. The price of parkingand the intensity of enforcementskyrocketed. The terms were negotiated in secret. City Council members got two days to study the billion-dollar, seventy-five-year contract before signing off on it. An early estimate from the Chicago inspector general was that the city had sold off its property for about half of what it was worth. Then an alderman said it was worth about four times what the city had been paid. Finally, in 2010, Forbes reported that in fact the city had been underpaid by a factor of ten.
Well, Chicagoans, Tom Geoghegan is here to tell you that the whole damn thing is illegal under the Illinois Constitutionand most other constitutions, too. Hes in the middle of a suit to have the whole thing torn up. The argument is driven by the legal theory that a seventy-five-year-agreement to run parking meters is an unconstitutional restriction on the police powerthe sovereign right of the city to control its public streets and ways . This is a very traditional, conservative, really, argument: what the City of Chicago did was not sell the meters. They sold the police power of the city.
The deal, you see, is structured like this. Not only does CPM get the money its meters hoover up from the fine upstanding citizens of Chicago. It gets money even if the meters are not used. Each meter has been assigned a fair market valuation. If the City takes what is called a reserve power adverse actionthat can mean anything from removing a meter because it impedes traffic flow, shutting down a street for a block party or discouraging traffic from coming into the city during rush hourCPM has the right to trigger an immediate payment for the entire loss of the meters fair market value over the entire life of the seventy-five-year agreement.
unhappycamper comment: This thread inspired by a SmirkingChimp article: http://smirkingchimp.com/thread/gaius-publius/51791/this-week-in-privatization-they-really-do-have-a-bridge-to-sell-you
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On Privatization's Cutting Edge (Original Post)
unhappycamper
Sep 2013
OP
appal_jack
(3,813 posts)1. Wow, incredible.
Wow, incredible. Everyone should read this. Taking our rights and public commons back via the police powers Constitutional argument is an important strategy. K&R.
-app
Hydra
(14,459 posts)2. This really sums up what they mean by privatization:
Looting.
Btw, this is President Obama's shining star. Any questions now about why everything else is going this way too?
snagglepuss
(12,704 posts)3. Not clear what you mean re that "this is President Obama's shining star".
thanks
Hydra
(14,459 posts)4. Rahm is one of the President's closest allies/advisors
Along with Rubin and Summers.