Tale of two parking garages in Chicago, Iloilo City

"Restore human legs as a means of travel. Pedestrians rely on food for fuel and need no special parking facilities." Lewis Mumford

By Alex P. Vidal

CHICAGO, Illinois -- The Iloilo City Hall in the Philippines merely needs a parking garage and has offered to buy the heritage building of Kerr and Company across the new city hall building for P35 million.

The City of Chicago, on the other hand, had to shell out $62 million to settle a dispute with the private operators of four city-owned parking garages downtown, records show.

The Chicago Sun Times reported May 23 that the payment last month ended City Hall’s long and unsuccessful legal fight against claims from investors in the four privately operated garages under Millennium Park and Grant Park.

"The dispute dates back six years. That’s when aides to former Mayor Richard M. Daley mistakenly approved a parking garage in the new Aqua building at 225 N. Columbus Dr.," reported The Chicago Sun Times.

It was learned that under the 2006 privatization deal, the Daley administration received $563 million to lease the parking garages for 99 years. 

COMPETITORS

As part of the deal, the city wasn’t supposed to allow any new competitors in a vast area surrounding the garages.

But less than three years after the Chicago City Council approved the deal, the Daley administration allowed the Aqua garage to open to the public just a block from the nearest of the privatized lots.

Arguing that that violated their deal, the operators of the garages filed a claim against the city, asking for at least $200 million.

The case went to an independent arbitrator, who ruled in 2013 that the city had breached the contract and should pay $57.8 million in compensation to the parking garage investors.

In Iloilo City, the building owners offered to sell the property for P50 million but the City Hall wants to buy it for P35 million as it plans to convert it into a parking garage, gallery and executive house, City Administrator Norlito Bautista revealed early this year.

ORIGINAL

City Hall has suggested to maintain the original structure of Kerr & Company building being the metropolis' heritage site.

The city government might reportedly resort to expropriation or the taking of private property for public use or in the name of public interest if Kerr & Company would not compromise on the final price.

But there is no need to initiate expropriation proceedings in order to acquire the property, clarified City Assessor Nelson Parreño, who explained that the negotiations will have to focus on the lot's  fair market value.

The lot's fair market value as set in the Schedule of Market Values is only P11,000 per square meter, according to Parreño, who stressed that with an area of about 3,000 square meters, it will cost only about P33 million.

Mayor Jed Patrick Mabilog said once acquired by the city government, the property can be converted into an annex building for offices located outside the City Hall.

He envisions a one-stop shop where transactions will become easier for clients.