Chicago Approves $15.5M Settlement with Parking Meter Firm Over Pandemic Disputes

Chicago is set to pay $15.5 million to Chicago Parking Meters, LLC to settle legal disputes stemming from the city's handling of parking meter enforcement during the COVID-19 pandemic. The disputes arose from former Mayor Lori Lightfoot's decision to suspend most parking ticketing and take some metered spaces out of service during stay-at-home orders, actions the company claimed violated the 2008 lease agreement negotiated under former Mayor Richard M. Daley. Although the parking meter company initially sought $322 million and an arbitrator recommended $120.7 million, the city negotiated the settlement at a much lower amount, which city officials described as a favorable resolution that ends costly litigation. The settlement also includes a commitment by the city to increase parking enforcement for a year and for the company to share meter data to support those efforts, with all citation revenues continuing to go to the city. Despite the large payout, the parking meter firm has already earned hundreds of millions, including over $150 million in 2023 alone, and the revenue from the disputed meter spaces surpasses the settlement cost by more than $10 million. City leaders view the agreement as closing a difficult chapter while focusing on improving the relationship with the company going forward.