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Central Parking must walk away from Marina City, Grand Plaza ramps
27-Sep-12 – Before the nation’s two biggest parking companies can merge, they must divest their interests in 107 ramps, including two in River North. The U.S. Department of Justice announced on Wednesday it would require Standard Parking Corporation and Central Parking System to shed parking facilities in 29 cities. It will be a prerequisite to Standard acquiring Central in a deal valued at approximately $345 million. Included in this list are the North State Street parking ramps at Marina City and Grand Plaza, both of which are managed by Central Parking System. On January 15, 2011, Central Parking System took over management of the two 18-story, 900-car spiral parking ramps at Marina City. Standard had managed the ramps since May 1, 2009. The government is concerned about the combined company becoming a monopoly, resulting in higher prices and reduced service. The Department of Justice has filed a lawsuit to block the acquisition but also proposed a settlement that would resolve its concerns. “Consumers have benefited from lower parking prices because of competition between Standard and Central in many urban central business districts,” said acting assistant attorney general Joseph Wayland in a news release on Wednesday. “These divestitures will ensure that consumers in the affected cities and states will receive better services.” Collectively, the ramps they must divest account for about $85 million in revenue each year. Standard and Central will have to sell off the ramps they own, terminate contracts with ramps they manage or allow the contracts to expire. It is not known what Central Parking System has in mind for the two River North ramps. Central’s general manager for Chicago did not respond to a request for further information.
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