Redflex Traffic Systems of today reported to the Australian Securities Exchange that it had rebuffed the $275 million offer from toll road giant Macquarie Bank for outright control of the company. The Australian red light camera maker believes that it can spark a bidding war to drive up the purchase price and enrich shareholders.
Who pays for free parking? Everyone but the motorist.
That’s the thesis of UCLA professor of urban planning, Daniel Shoup’s new book The High Cost of Free Parking. Marginal Revolution blogger Tyler Cowen explains Shoup’s line of thinking in an NYT Op-Ed.
Many suburbanites take free parking for granted, whether it’s in the lot of a big-box store or at home in the driveway. Yet the presence of so many parking spaces is an artifact of regulation and serves as a powerful subsidy to cars and car trips. Legally mandated parking lowers the market price of parking spaces, often to zero. Zoning and development restrictions often require a large number of parking spaces attached to a store or a smaller number of spaces attached to a house or apartment block.
If developers were allowed to face directly the high land costs of providing so much parking, the number of spaces would be a result of a careful economic calculation rather than a matter of satisfying a legal requirement. Parking would be scarcer, and more likely to have a price — or a higher one than it does now — and people would be more careful about when and where they drove.
The subsidies are largely invisible to drivers who park their cars — and thus free or cheap parking spaces feel like natural outcomes of the market, or perhaps even an entitlement. Yet the law is allocating this land rather than letting market prices adjudicate whether we need more parking, and whether that parking should be free. We end up overusing land for cars — and overusing cars too. You don’t have to hate sprawl, or automobiles, to want to stop subsidizing that way of life.
Cowen points to San Francisco’s market-based parking meters as one potential solution for the waste and stealth subsidies of automotive overuse caused by free parking (which Shoup reckons amounts to a staggering $127b annual subsidy). But will market-based parking pricing be any more politically palatable than other green behavior-modification efforts like, say, a gas tax? On the other hand, if municipalities can get rid of speed cameras due to increased parking revenue, perhaps the compromise might be more worth it to motorists. Either way, one gets the feeling that the free parking phenomenon isn’t going to disappear overnight.
In December 2008, the city of Chicago, Illinois leased for 75 years its 36,000-space parking meter system to Chicago Parking Meters LLC. This firm, which is owned primarily by Morgan Stanley Infrastructure Partners, made a one-time, $1.16 billion up-front payment for the right to collect meter revenue for the life of the deal. By next year, Mayor Richard M. Daley will have spent the entire payment shoring up the budgets for 2010 and 2011.
The city of Mukilteo, Washington filed papers Monday hoping to thwart the attempt of a traffic camera company to deny residents the chance to vote on banning automated enforcement. Snohomish County Superior Court Judge Michael T. Downes on Friday will hear arguments in the case filed by an American Traffic Solutions (ATS)-funded front group to protect the company’s ticketing contract from the fate such agreements have shared in all ten cities where the public has forced a vote to toss out the cameras. The sponsors of Mukilteo’s initiative — Nicholas Sherwood, Alex Rion and Tim Eyman — filed a more comprehensive legal brief as intervenors tearing apart the ATS-backed case.
Red light cameras are becoming less popular among municipal leaders in California. On Monday, the Yucaipa city council voted unanimously to cancel its photo enforcement contract with Redflex Traffic Systems of Australia. The previous week, Costa Mesa officially pulled the plug on its automated ticketing machines.
Noticed that things have been a little slower around here this week? Yes, well, it’s summer and I’m much harder to motivate in the summer. Also, I’ve been working on this op-ed on the Chevy Volt for the New York Times. My conclusion on the Volt?
In the end, making the bailout work — whatever the cost — is the only good reason for buying a Volt. The car is not just an environmental hair shirt (a charge leveled at the Prius early in its existence), it is an act of political self-denial as well.
If G.M. were honest, it would market the car as a personal donation for, and vote of confidence in, the auto bailout. Unfortunately, that’s not the kind of cross-branding that will make the Volt a runaway success.
Pennsylvania Governor Ed Rendell is struggling in his latest budget with the desire to spend more money while lacking tax revenue due to the economic recession. Nonetheless, the $28 billion budget for 2011 expends $200 million more than the previous year. Rendell yesterday testified before the state Senate Transportation Committee about how he intended to hit up motorists to make up much of that amount.
“If you did the increase in fees for inflation and the four cents at the pump — again, I think my idea is the best idea — but if you did that, you’ve got almost $100 million more,” Rendell testified. “If you did the InsureNet — that’s the plan with the cameras — the state would generate $75 million more.”
With Chicago-area residents spending an average of 60 hours per year in traffic, and the city losing over $7b in lost productivity, wasted gas and environmental damage, Chicago is considering a version of congestion pricing that would charge drivers extra to use the left lane. According to chicagobreakingnews.com, Chicago’s Metropolitan Planning Council studied
the Stevenson Expressway (Interstate 55) from I-355 to downtown Chicago; the Jane Addams Tollway (I-90) from I-290/Illinois Highway 53 to Elgin; and the reversible lanes on the Kennedy Expressway (I-90/94)
and recommended a fast lane toll to encourage responsible use of the freeways. The study suggested a $2.19 roll for inbound trips, but suggested that a variable toll based on time, trip, and traffic conditions could be imposed. The MPC figures $23m per year could be raised from such a toll on the Kennedy’s reversible lanes alone, and that money is needed for future road construction. But would you be willing to pay a little extra to be guaranteed a fast-moving left lane? Or is this just a revenue-raising “Lexus lane” that will benefit the rich and the city government and few others?
Toyota’s having some pretty rotten luck recently. First was “acceler-gate”, the mass hysteria of how Toyota cars were going out of control and murdering innocent people. Then came stories of people blaming Toyota cars for accidents, when in reality it was the driver’s fault (or in the case of Jim Sikes, a scam). You would have thought this would pour oil over troubled waters for Toyota, right? Nope. The malaise continued. Then came the public humiliation of the senate hearings. Did anybody in the media point out the conflict of interest for the senate? Well, if they did, nobody listened. So, while Toyota is fire fighting in North America and is having a bit of a rough time in Europe, at least things are OK in Australia. A market where Toyota dominated for 5 years. Well… (Read More…)
The South Carolina House of Representatives voted Thursday to make the state’s ban on photo radar explicit. In 2006, the office of the attorney general issued an opinion stating automated ticketing conflicted with state law, but Ridgeland officials decided to ignore the ruling and operate a speed camera van on Interstate 95. The town of 2500 wants to deploy cameras to ticket out-of-state drivers as they pass through the seven-mile stretch within the town’s limits.
The race for the Republican nomination for Alabama governor grew heated last week as a leading candidate faced questions over his involvement in a toll road deal. Tim James, 48, is running for the nod as a leading businessman and the son of former Governor Fob James, Jr. His opponent, Bradley Byrne, 55, is a former state senator and chancellor of the Alabama College System. Byrne and James traded verbal blows over the Foley Beach Express, a 13.5-mile four-lane route from the city of Foley to Orange Beach meant to bypass the congested Highway 59 for those willing to pay a $3.50 toll.
Sykesville, Maryland yesterday became the tenth jurisdiction to reject the use of photo enforcement by referendum. The town was to be the first in Carroll County to operate automated ticketing machines after leaders approved an ordinance designating three speed camera zones on February 22. These plans fell through after a group of residents collected more than enough signatures within the thirty-day deadline to put an ordinance repeal on the ballot. Sixty-one percent of Sykesville voters insisted on repealing the use of speed cameras.
The Florida legislature gave final approval yesterday to legislation giving municipal governments permission to operate red light cameras in return for a significant cut of the profit generated. The state Senate voted 30 to 7 to adopt a bill that had been approved last week by the House by a 77 to 33 vote. Passage of the measure represents a significant victory for American Traffic Solutions, a firm that installed and operated red light cameras in violation of state law on the gamble that the legislature would eventually authorize photo ticketing.
US District Court Judge James B. Zagel on Wednesday unsealed documents filed in the case against former Illinois Governor Rod R. Blagojevich (D). The 91-page document lays out in greater detail the evidence in the prosecution’s corruption case against a man charged with using his office to line his own pockets. One of the central money-making schemes alleged is a multi-billion deal to install High Occupancy Toll (HOT) lanes inside an existing toll road. Blagojevich announced the program in 2008.
Ohio.com reports that GM will miss a March 31 deadline for filing its first GAAP-compliant financial results since emerging from bankruptcy. According to an SEC 10k filing:
General Motors Company (the “Company”) is unable to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (the “2009 Form 10-K”) by March 31, 2010, as the Company is still finalizing its fresh-start adjustments required by generally accepted accounting principles relating to the assets acquired and liabilities assumed from General Motors Corporation (“Old GM”) in connection with Old GM’s sale of assets under Section 363 of the United States Bankruptcy Code (the “363 Sale”) prior to such date. Due to the size of the Company, the global application of fresh-start reporting and the associated determination of the fair value of its assets and liabilities is a significant undertaking, which requires extra time
GM says it will be able to file within a 15 day extension period, which means there’s not too much longer to wait before we have our first “real” measure of GM’s post-bankruptcy performance. And because GM’s last results were accompanied by warnings that Q4 2009 results could be worse than November’s non-GAAP numbers (not to mention recent soft-pedaling by CFO Chris Liddell), there’s reason to believe that they won’t be particularly pretty. Either way, GM can only delay their release for so long. As 60 percent stakeholders in the artist formerly known as the world’s largest automaker, taxpayers have the right know just how their “investment” is panning out. I guess we’ll be seeing GM in line at the post office just before the midnight on the 15th.
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