Is There a Smart Way for Cities to Privatize Parking?

The Sacramento City Council voted recently to approve a plan to build a new downtown arena to replace the current suburban home of the Sacramento Kings. It's seen as a major victory for Mayor Kevin Johnson – himself a former NBA player – and for the city's downtown. But with tight budgetary times facing the city, a $391 million arena project is also a particularly costly venture. To pay for it, the city's going to have to get creative.

The city's share of the project – roughly $255 million – is expected to come mostly from revenue generated by city-owned parking. But waiting for parking meters to collect $255 million in quarters would take far too long to enable the quick development of the new arena, which officials need to get moving in order to prevent the team from pulling the trigger on a long-brewing plan to leave town. They're hoping to have the new arena open for the 2015-16 season.