OverviewPublic Private Partnerships (P3)

September 30, 2014

What is P3?

PUBLIC-PRIVATE PARTNERSHIPS (P3)

A business relationship between a government agency and a private-sector company for the purpose of completing a project that will serve the public.

Public-private partnerships can be used to finance, build and operate projects such as public transportation, parks, and educational facilities.

Infrastructure / Social Infrastructure

PUBLIC-PRIVATE PARTNERSHIPS (P3)

InfrastructureTraditional P3 projects have centered on infrastructure projects (bridges, toll roads, utility plants).

Social InfrastructureWithin recent years, P3 projects are now also centered on social infrastructure (libraries, public safety facilities, educational facilities and civic centers).

Brief History of Project

BRIEF HISTORY

Initial City / School District Joint Meeting

January 2013

Meetings with Ad-Hoc Committee Members (City and District )

February – September 2013

County Library Prepared Facility Program

September – December 2013

City Initiated City Hall Facility Program

August 2014

Tax-Exempt LeasePublic agency finances public facilities by borrowing funds.

Asset is transferred to public agency either at beginning or end of lease term.

Portion of lease payment used to pay interest is tax-exempt.

P3 Financing TypesSource: National Council for Public-Private Partnerships

Developer FinancePrivate party finances the construction of public facility in exchange for opportunity to develop residential and/or commercial uses at the site.

P3 Financing TypesSource: National Council for Public-Private Partnerships

Examples of P3 Development

TRANSPORTATION PROJECTSInfrastructure and operations of public roads and highways.

PARKS Private maintenance and operations agreements for federal, state, and local parks.

EDUCATION FACILITIESLeveraging private real estate for public schools.

INFORMATION TECHNOLOGYHigh speed internet infrastructure/access for America’s cities.

UNIVERSITY EDUCATIONAL AND HOUSING PROJECTSDormitories, laboratories, athletic facilities, dining establishments, and conferencing.

P3 Examples

Vista Civic Center Civic Center and Community Room

Downtown Mixed Use Housing and RetailOffice Building for San Diego Housing CommissionCondominium Building with Subterranean Parking

San Marcos Civic CenterMixed-use City Hall, Library, Office, and Retail

New Middle School and High SchoolFairfax County Public School District in Partnership with Clark Education, Virginia

New High School and Town Center (City Hall, City Library, and Aquatic Center) Natomas Unified School District in Partnership with North Natomas Town Center, Sacramento, California

New Elementary School and Market Rate HousingWashington DC Public Schools in Partnership with the District of Columbia

Source: Keyser Marston

OverviewPublic Private Partnerships (P3)

ReferenceNational Council for Public Private Partnerships

http://www.ncppp.org/