Net present value, folks. Learn about it, then tell me why you think it's better to pay out more money on bond interest than to retire the debt early. Chicago also did it with the underground parking garages in Millenium park, which is why the capital costs of building said park are already fully paid off, which has had a positive effect on the city's credit rating.
Since the idea of private meter operation arose last year, New York officials have said they want to avoid repeating the experience of Chicago, where motorists may pay a Morgan Stanley- led partnership at least $11.6 billion to park at city meters over the next 75 years, 10 times what former Mayor Richard Daley got when he leased the system in 2008.
"We are taking a careful and deliberate approach to avoid mistakes others have made," Wood said. New York would retain "full control" of rates and violations enforcement, she said.
Here's the question. Isn't the whole idea that private companies are more efficent then the government based on the idea that private companies compete with one another?
If so, why the hell would you grant all parking rights to a single company?
Because it works so well with cable TV?
I would rather the city be around with a lower debt burden and a higher credit rating, so that residents and businesses see a smaller share of their taxes flowing to bondholders in the form of interest payments.
You are a mind reading THIEF as my plan was to have meters that worked like slot machines wherein the user would have the chance to win a free 64oz soda of their choice each time they put in a quarter.
I am not sure where the sodas would be kept. I might have to sit on the street with a cooler.
wait that sucks.
"Among all NYC households, 46 percent own cars, according to Census data gathered between 2005 and 2009..." From here.
False premise. You have competitive tenders for a long-term contract. Also, you have competitors offering off-street parking.
Yes, but transaction costs. Imagine the legal and administrative overhead of dealing with so many stakeholders. You'd end up with the same economic inefficiencies that beset taxi medallions. Plus the idea that drivers would select their parking based on the identity of the administrator is refuted in practice.
Why bother with fiscal responsibility at all? Just go with boom and bust, get somebody else to pay for it. Well, this is often historically the case, but governments that take Keynesian economics seriously can and do save for a rainy day. I'd like to think that corruption and ineptitude weren't inevitabilities.
If the city closes a street, yes. The mayor got all pissed recently about this when the monopoly billed the city for millions due to various street shutdowns (eg: NATO). I'm not personally sure about the snow thing, but I could believe it.
2) read the valuation document linked to above. These aren't speculative investments whose value can't easily be estimated. Net Present Value is a very basic tools of financial analysis, nothing like the methodologies used for evaluating exotic derivatives or turning mortgages into financial lunchmeat.
Heck, in 20 years it could all be self-driving cars operated on a fractional ownership basis, where your car drives off to its next customer after dropping you off, and no one needs a parking space.
This is an absolutely terrible deal. Using the numbers from your link, in the case of Chicago, they used a discount rate of 10% . What this deal amounts to is floating a 75-year bond and borrowing money from Morgan Stanley at 10% interest secured by the parking meter income stream. This money is then used to pay off other bonds that the city is borrowing at 5%.
Actually, Chicago's called The City That Works for a reason. We tolerate corruption in exchange for shit being taken care of, for better or worse.
Well, that's my answer to you: you can try. But chances are it won't get you anywhere, plus it's sort of an asshole thing to do. But hey, knock yourself out. As a walker/transit user your parking rage is amusing to me.
Most criminals get caught because they're predictable and can't resist the urge to show off.
The Sun-Times last year observed dozens of able-bodied people using relatives’ placards, deceased people’s placards, fake placards and even stolen placards to cheat Chicago’s meter system. A subsequent Sun-Times report revealed that taxpayers are on the hook to reimburse the meter company for drivers who use disabled-parking placards or plates to park for free.
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