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In 2008 Mayor Richard Daley leased all 36,000 Chicago parking meters for 75 years…

2026-05-10 · 03:08 UTC ·@BoringBiz_ ·1 min read

Brief

Chicago's 2008 parking-meter lease gave a Morgan Stanley/Allianz/Abu Dhabi joint venture control of all 36,000 meters for 75 years at $1.15 billion. Economists say the asset was underpriced by about $900M; revenues of $1.97B from 2009–2024 already exceeded the purchase price. A true-up clause forces the city to compensate investors for any lost metered revenue, including EV conversions.

Why it matters

In 2008 Mayor Richard Daley leased all 36,000 Chicago parking meters for 75 years to an LLC joint venture including Morgan Stanley, Allianz Capital and Abu Dhabi’s sovereign wealth fund for $1.15 billion.

Key details

  • Economists estimated in 2009 the asset was underpriced by nearly $900 million; Abu Dhabi likely holds a 50%+ controlling stake, and the lease generated $1.97 billion from 2009–2024, exceeding the purchase price within 15 years with 57 years remaining on the contract.
  • The contract requires Chicago to 'true-up' investor revenue whenever a metered spot becomes unavailable — including for parades, street maintenance, bike lanes, outdoor seating or conversion to EV charging — effectively guaranteeing investor income and making the deal extremely investor-favorable.
Source evidence

Still find it absolutely crazy that the city of Chicago signed away all their revenue from parking meters for 75 years to Abu Dhabi

The economics of the deal are insane too and here is the story of how the deal came together

In 2008, Mayor Richard Daley initiated a 75 year lease of all 36,000 of Chicago's parking meters for $1.15 billion

Important context here is that this was during the global financial crisis when cities were having trouble raising tax revenues

The buyer was an LLC joint venture between Morgan Stanley, Allianz Capital and Abu Dhabi's sovereign wealth fund. The exact splits were never disclosed but it is estimated that Abu Dhabi controls the majority position through a 50%+ stake

The deal was extremely mispriced. In 2009, economists conservatively underpriced the deal by nearly $900M, giving Abu Dhabi nearly a 40%+ discount on the fair value of the asset

Between 2009 and 2024 alone, the lease generated $1.97B in revenue. So just within 15 years, the revenue generated already well exceeded the $1.15B price tag and there are still 57 years left on the contract

The craziest part of the contract? The true-up payments.

Chicago agreed that if a metered spot became unavailable for any reason, including parades, street maintenance, bike lanes or outdoor seating, the city will compensate the joint venture for any projected losses

This also includes if a metered spot later becomes an EV charging station. The city will go out of its way to make the investors whole on any revenue lost.

From an investor's POV, it has to be one of the best infrastructure deals ever made