Group Wary of Trust Bank

The Illinois Coalition to Protect the Public Commons, a group that opposes public asset privatization, last week announced its concerns over Chicago Mayor Rahm Emanuel’s proposal to establish an infrastructure trust bank that would leverage private investment in public projects.

The group said it wants to “ensure that the city is not exploited again, as in the recent parking meter fiasco,” referring to the city’s $1.15 billion lease in 2009 of its parking meters that has been criticized over the poor transfer to private operators, skyrocketing rates, and the former mayoral administration’s use of most of the proceeds to balance recent budgets.

The coalition believes the trust would not provide enough public transparency or accountability. “An infrastructure trust fails to ensure that public funds will be used for the repair and improvement of the infrastructure. It opens the gateway for quiet, secret use by those who control it,” the group said.

Emanuel has said the trust would face strict disclosure rules and the City Council would have oversight of future projects to be funded.

The group is calling on the city to publish a detailed report on how projects would be funded, including proposed rates of return and length of contract for the investors. It also wants assurances of an open review process, with public representation and public input.

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Illinois
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