The City's Surprise Bid
Chicago city officials have confirmed that the city submitted a bid to buy back its parking meter system before it was sold in 2008. The company interested in purchasing the parking meters, which is now known as Stonepeak, stated that Chicago's bid was $3.3 billion—approximately $800 million higher than its winning offer. This revelation has sparked questions from several aldermen regarding why the bid was not disclosed to the City Council and why the Johnson administration has provided limited details about the process.
A History of Controversy
The original deal was made by former Mayor Richard M. Daley, who sold the parking meters to Chicago Parking Meters LLC, a company run by Morgan Stanley, for $1.15 billion. During a recent finance committee hearing, aldermen expressed that this deal was one of the worst in the city’s history. They spent hours questioning representatives from Stonepeak, an investment firm from New York City that won the bid to purchase the parking meters from CPM, pending city council approval.
Aldermen also raised concerns about the city’s Law Department after discovering that the city had quietly attempted to buy back the parking meter system. The Law Department confirmed that the Johnson Administration submitted a bid to buy the meters sometime in the fall of 2025 but did not disclose the amount. However, Stonepeak Senior Managing Director James Wyper mentioned that the company believed the city's offer was several million dollars over its own.
"We believe it to be $3.3 billion," Wyper said when asked directly by Alderman Matt O'Shea, 19th Ward. Stonepeak's bid was approximately $2.53 billion, according to company representatives.
Wyper explained that the company was surprised by the city's offer, especially since officials had previously indicated that Chicago was not interested in purchasing the meters. "We were very surprised," Wyper said. "We had been assured for some period of time that the city was not interested nor was it candidly capable of raising the quantity or magnitude of funds required to purchase the parking meters."
Concerns Over Financing and Secrecy
According to Stonepeak, one reason the city's offer was not selected was because it would have relied heavily on borrowing money through municipal bonds. The hearing also revealed that the Johnson administration entered into a confidentiality agreement with CPM during the bidding process. Representatives from Stonepeak said portions of that agreement were waived on June 12, allowing more information to be discussed publicly. This revelation frustrated several aldermen who said they still have not received answers from the mayor's office.
"So the mayor put a bid in six months ago, $3.3 billion for parking meters that we don't have the money for, didn't disclose that to anyone in the City Council," O'Shea said. "I think we need to get someone down here to answer some of these questions."
Ald. Samantha Nugent echoed those concerns, saying, "I think what we're seeing is a lot of folks that don't want to touch this and are using NDA's and walls and all sorts of excuses to not having skin in the game in something critically important to the entire city of Chicago."
Ald. Anthony Beale was even more blunt, stating, "They did not want anybody to know that they bidded $800 million more than you guys did. Anybody who bids $800 million dollars over, they need to be fired."
Scrutiny of Stonepeak's Business Practices
The hearing was not solely focused on the city's bid. Several alders raised concerns about Stonepeak's broader business portfolio, including one company that transports Russian liquefied natural gas. Wyper defended the firm's investments, stating that some of the contracts predate current geopolitical tensions and sanctions.
"It bothers me that the source of the molecules is the Siberian Peninsula," Wyper said. "There were no sanctions in place at the time that we acquired that business."
Ald. Andre Vasquez, 40th Ward, criticized Stonepeak's subsidiary company, Air Transport Services Group, which owns Omni Air International. This company is behind the Trump Administration's controversial ICE flights to Third World countries. "At some point, tear gas people to get them off of a flight, to force them off. There is nothing about this organization and this company is doing that anyone should want to be a part of, and it affects the reputation of anyone partnering with them and the city engaging in anything of it," said Vasquez.
Unanswered Questions
Several major questions remain unanswered:
- Why did the Johnson administration decide to pursue a $3.3 billion bid after previously saying buying back the meters was too expensive?
- How was the city planning to finance the acquisition?
- Why was City Council not informed about the bid when it was submitted?
- Does Mayor Brandon Johnson support the proposed transfer to Stonepeak?
During the hearing, aldermen repeatedly asked city officials to explain the mayor's position. Representatives from the Law Department declined to answer, saying those questions should be directed to the mayor's office.
What the Administration Says
A statement from a spokesperson with Mayor Johnson's administration reads:
"The City’s bid price has been reported publicly. The bid process was conducted as a closed process. The City had no control over the structure of the bid process or its terms. Morgan Stanley established the bidding procedures, including which bids would advance through the process and whether the City could continue participating. The City participated under those terms to evaluate whether acquiring the asset was in the best interest of taxpayers. Once the City determined in January 2026 not to proceed based on the price demanded by the seller, the resulting cost to taxpayers, and the assessment that the transaction was not in the public interest, it publicly disclosed to the City Council and the public that it had participated in the bidding process.
"The confidentiality agreement has not been waived. While CPM has made public statements regarding the confidentiality agreement, the City cannot treat those statements as a formal waiver. The City is awaiting that formal authorization before disclosing any information covered by its confidentiality obligations."
Next Steps
The Finance Committee did not vote on the proposed transfer Wednesday. The ownership change still requires City Council approval before Stonepeak can officially take control of Chicago Parking Meters. In the meantime, aldermen are expected to continue pressing the Johnson administration for answers about the city's unsuccessful $3.3 billion bid and the secrecy surrounding the process.
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