An $11B return on Chicago parking meter lease?

Posted Aug. 9, 2010 at 11:13 a.m.

From Bloomberg | A Morgan Stanley-led partnership will get at least $11.6 billion from Chicago drivers over the next 75 years, 10 times what Mayor Richard Daley got when he leased the system to investors in 2008.

The deal illustrates how Wall Street banks 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.

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