Citi Bike Owes NYC $1 Million in Lost Parking

A man returns his Citi Bike bicycle to a station near Union Square as the bike sharing system is launched May 27, 2013 in New York. About 330 stations in Manhattan and Brooklyn will have thousands of bicycles for rent.
Photo: STAN HONDA/AFP/Getty Images

Add it to the list of financial problems: In the fine print of the city’s contract with the bike-share program, parent company Alta is responsible for reimbursing parking revenue missed out on because of rental stations, part of Mayor Bloomberg’s original plan to not burden the taxpayer at all. The Wall Street Journal reports that Citi Bike owes about $1 million — equal to some 10,000 annual memberships — through 2013, a not insubstantial amount considering it’s struggling for find a workable business model. “We continue to discuss parking revenue as an important part of negotiations regarding the future operations and viability of the system,” said a city transportation spokesman. Happy one-year anniversary, Citi Bike! To many more … maybe?