A Morgan Stanley-led consortium has agreed to sell its lease of Chicago's parking meters to Stonepeak, a New York-based investment firm, for $2.5 billion. This transaction is subject to the Chicago City Council's approval, with an ordinance expected to be introduced this week. The current owners, which include Morgan Stanley, Allianz Capital Partners, and the Sovereign Wealth Fund of Abu Dhabi, secured the 75-year lease in 2008 for $1.15 billion under then-Mayor Richard M. Daley.
The sale has sparked controversy within the Chicago City Council. At least 22 aldermen have signed a letter indicating they will vote against the sale, citing concerns about the original deal, which many consider one of the worst municipal transactions in the country. Some aldermen are also frustrated by a nondisclosure agreement used by Mayor Brandon Johnson's administration, which they claim has limited information regarding the deal. Stonepeak, during a recent hearing, attempted to assuage council members' concerns by apologizing for the "political situation" and expressing openness to working with the city to reduce annual payments for parking spaces taken out of service, which totaled over $13 million in 2025 and $41.4 million since January 2019.
Mayor Johnson's administration reportedly offered the current owners $3.3 billion to buy back the meters, an offer that was abandoned. Stonepeak's $2.5 billion bid is $800 million less than the city's abandoned offer but more than double the original $1.15 billion received by the city in 2008. The City Council's approval is the only remaining hurdle, and a rejection could potentially lead to litigation. Despite the controversy, the city remains bound by the terms of the original lease for another 58 years, regardless of who owns it.
