Chicago’s City Council approved the sale of the city’s parking meter system to New York investment firm Stonepeak Partners on Tuesday, concluding months of intense negotiations and contentious debate among aldermen. The vote was 46-3 in favor of the $2.53 billion transaction, which transfers the leasehold interest in the parking meters for the remaining 57 years of the contract from a Morgan Stanley-controlled group to Stonepeak.

The original 2008 deal, struck under then-Mayor Richard M. Daley, leased out the city’s roughly 36,000 parking meters for 75 years in exchange for $1.15 billion. That agreement has been widely criticized as financially disadvantageous to Chicago, limiting the city’s ability to adjust parking rates, modify roadways, or create new bike lanes while delivering less revenue than expected. The lease has since generated over $2 billion in revenue for investors, including nearly $190 million in 2025.

While Stonepeak’s acquisition does not buy back the meters for the city, aldermen argued the updated agreement represents a marked improvement on the previous deal. It includes a $75 million upfront transfer fee, 2% of any future sale proceeds, and 5% of the system’s net income—equivalent to about $140 million in present value—terms that aldermen said better serve the city’s interests.

Finance Committee chair Ald. Pat Dowell described the deal as “gritty and nuanced,” reflecting months of tough negotiations under pressure to meet an October 1 deadline set to avoid costly arbitration. The sale’s approval came with less than two days remaining before the deadline. The process stalled briefly last week when a planned floor vote was postponed amid concerns of a delay tactic by Mayor Brandon Johnson’s floor leader, Ald. Jason Ervin, who ultimately voted against the deal. Johnson himself remained largely hands-off throughout the negotiation, though he later called the agreement “stronger” than the original contract.

Opposition to the sale centered on several issues, including Stonepeak’s ownership of Omni Air, a cargo airline involved in deportation flights for federal immigration authorities. Stonepeak pledged—and subsequently announced a deal to sell—the airline, easing resistance from some progressive and Latino aldermen. Critics like Ald. William Hall and Ervin argued the deal was rushed and favored investors over the public good. Hall also raised concerns about inadequate commitments to Black contractors.

Some aldermen accused Ervin and Hall of using last-minute political maneuvering to delay the vote, with Ald. Scott Waguespack condemning what he called attempts by “outside agitators” to disrupt the approval. Meanwhile, supporters expressed hope that the City Council is evolving toward more mature and independent decision-making.

Looking ahead, aldermen and Stonepeak agreed to explore ways to increase city revenues through emerging technologies such as electric vehicle charging. Proposals also include a “city wallet” program to streamline payments for parking and other services, and the potential introduction of a surcharge on parking rates for non-Chicago residents, which officials estimate could add 25 to 50 cents per hour and generate significant new revenue by using license plate data.

Despite lingering criticisms, the sale signals a partial overhaul of one of Chicago’s most controversial public-private arrangements, with council members expressing cautious optimism about the city’s ability to secure better terms as it manages critical infrastructure revenues going forward.