Indianapolis moves toward parking contract full of hidden and shifted costs
The Indianapolis City Council will vote Monday on a 50-year contract privatizing public parking. The contract is with ACS, the same contractor involved in the botched privatization of Indiana's social services. A council committee approved the plan this week despite warnings about privatization fiascoes, corruption and the projection of huge long-term financial loss.
In a fact sheet and op-ed, US PIRG details conflicts of interest, skyrocketing parking rates and the estimated siphoning of at least $400 million to the company.
As in Chicago, the proposed contract is full of hidden costs. "Non-compete" clauses restrict the city from creating or improving other parking facilities, which could lower ACS' profit. And the city would have to pay the company phantom meter rates whenever streets must be closed for repairs, parades or anything else that blocks a meter.
