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Volume
8, Issue 14 -
June 29, 2016
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Good
to know
alternative
funding sources
can be found
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| Mary
Scott Nabers,
President/CEO,
Strategic
Partnerships,
Inc. |
Recent
events such as
the Flint,
Mich., water
crisis and
extreme
flooding in
Houston,
Texas, have
highlighted
the dismal
state of the
nation's
crumbling
water
infrastructure.
Communities
everywhere are
being forced
to face the
harsh reality
that water
must be
conserved and
antiquated
pipelines must
be
addressed.
All this is
happening at a
time when
public funding
is simply not
adequate to
fix the
problems.
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Strategic
Partnerships,
Inc. provides
opportunity
identification
for all 50
states.
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Government
Contracting
Pipeline Archives
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Mixed-use
P3 projects
including public
facilities
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North
Carolina fire
station in office
building example
of this growing
trend
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East West
Partners/Gensler
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Nestled in the
middle of a
planned $20
million
mixed-use
development in
North Carolina
that features a
four-story
office building
with a two-story
parking deck
will sit a $3
million fire
station. That's
right, a fire
station! (See
artist's
rendering at
left.) Aptly
named The
Station at East
54, this
particular fire
station in
Chapel Hill is
an example of a
growing number
of
public-private
partnerships
(P3s/PPPs) in
which cities are
reaching out to
developers for
collaborative
efforts to
incorporate
public
facilities into
their private
developments.
The
private
developer in
this deal, East
West Partners,
has previously
built the
mixed-use East
54 hotel,
office, retail
and apartment
community
adjacent to the
fire station
property. East
54 is a
development that
features a new
urban village of
luxury condos,
shops, dining
and office
suites.
Under the
terms of the
proposed P3, the
developer will
pay $1.75
million of the
fire station
cost. The town
of Chapel Hill
will put up
$750,000 toward
the project and
the county -
which will be
locating some
emergency
services at the
new facility -
will throw in
another
$500,000.
Initially,
the town planned
to sell the land
on South
Hamilton Road
where the
current Chapel
Hill Fire
Station 2 is
located and then
lease back space
for the fire
station.
However, the
plan was changed
and the town
decided to
maintain
ownership of the
property and the
developer would
help build the
new station in
its place. In
exchange, the
developer will
be allowed to
lease out the
nearly 55,000
square feet of
office space in
the complex. An
added advantage
for the town is
that the new
development will
increase the
town's tax base
by $40,000.
This is
not the first
such P3
agreement that
Chapel Hill has
been working on.
Town officials
are also seeking
developers for
other town-owned
properties. One
such project
under
consideration is
the
redevelopment of
a town-owned
parking lot into
a six-story,
mixed-use
building with a
music venue and
parking deck.
Elsewhere
around the
country, the
city of New York
leased 1.5 acres
of city property
to a private
developer in
exchange for the
developer
including space
for two public
schools in a
12-story private
development that
also houses a
grocery store.
This $700
million
mixed-use P3
project will
result in the
two school
floors being
built at no cost
to the city. The
city will retain
ownership of the
property. The
developer will
be granted a
75-year lease
and will make
annual payments
in lieu of
taxes.
Public
libraries are
finding a home
in privately
built mixed-used
facilities as a
result of
public-private
partnerships. In
Wisconsin, a
mixed-use
facility is
under
consideration
that would
involve a new
Appleton Public
Library and
another
development like
a community
center, housing
and retail
and/or
commercial
space.
In Sandy
Springs,
Georgia, a
public-private
partnership
between the city
and a private
developer
building a
mixed-use
facility will
include a new
city hall and
performing arts
center along
with retail and
residential
space.
Public-private
partnerships in
the past have
been thought of
more for
transportation
and public
infrastructure
projects like
water and
wastewater
plants. However,
local
governments are
redefining the
uses for P3s
with innovative
proposals that
can help them
add or replace
public
facilities at
little cost to
the government
entity or
taxpayers.
Expect this
trend to
continue.
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Upcoming
contracting
opportunities
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Iowa school
district to bid
out improvement
projects
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The Wapello
school district in
Iowa plans to seek
bids beginning July
11 for four projects
over two phases. The
total price tag for
all of the projects
is more than $2.94
million. Phase One
includes building a
new $1.759 million
high school gym and
developing a new
high school campus
parking area.
Officials are
hopeful to begin
those projects as
soon as possible.
They would like for
the gym to be
completed by early
August of next year
and the parking area
in November of this
year. Other projects
to be bid for Phase
Two include security
upgrades and office
upgrades at the
elementary and
secondary buildings
and renovation of
the high school
Family and Consumer
Science room. These
projects are
expected to begin in
June of next year
and be completed two
months later.
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Maine
DOT studying bridge
replacement in
Yarmouth
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A public
hearing was held
recently by the
Maine Department of
Transportation
seeking input on its
plans for a proposed
bridge project
across Main Street
in Yarmouth. In
addition to
replacing the
existing bridge, the
$4.9 million project
will also include
the addition of
sidewalks on the
bridge, ramps
connecting the
roadway to Yarmouth
village, new
lighting,
landscaping and
seating under the
bridge structure.
The town will fund
about $257,000 of
the pedestrian
improvements.
Following discussion
of whether to
upgrade or replace
the bridge with an
at-ground
intersection, an
advisory committee
recommended building
a three-span,
flat-arch bridge to
replace the current
bridge. Plans are to
award a contract for
the project early
next year and to
begin construction
in July 2017.
Traffic will
continue to use the
existing bridge
during construction.
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Ohio
county to seek bids
for bridge
replacement
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Officials in
Jefferson County,
Ohio, will advertise
for bids for a
bridge replacement
on Goulds Road in
Steubenville. The
$1.6 million project
will take about a
year to complete,
according to county
officials, and the
existing bridge will
remain in operation
until the new one is
completed. Eighty
percent of the
project will be paid
for by the Ohio
Department of
Transportation. The
owner of the former
Satralloy plant was
ordered by the Ohio
Environmental
Protection Agency to
clean up the site of
its facility that
was used for the
smelting of chromium
ore, leaving a known
carcinogen as a
by-product. Because
the company will use
trucks that will
traverse the bridge
to haul out the
materials it cleans
up, the former owner
will pay for part of
the bridge project.
The successor
company that will
now use the property
has donated $250,000
for the design of
the bridge and
construction of a
rail spur. County
officials are
hopeful the addition
of the rail spur and
replacement of this
bridge and another
one to be replaced
at a later date will
have a positive
effect on economic
development in the
area.
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Downtown
upgrades part of
Salem bond proposal
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Wi th about half a
million dollars to be
dedicated for downtown
renovations, officials
in Salem, Va., are
considering an $11.5
million bond issue. In
addition to the
downtown area
upgrades, the bond
proceeds would also be
used to improve the
Salem Memorial
Ballpark, the city
library and the
courthouse. The bonds
would also be used to
pay for an automated
meter reading system.
City Manager Kevin
Boggess (pictured)
said that about $5.2
million of the bond
issue comes from
general fund projects
that the city will
cover with general tax
revenue. Ballpark
renovations include
replacing the
stadium's outfield
wall and repairing the
elevator. A new
scoreboard is also in
the works. Officials
said most of the costs
of the upgrades at the
stadium will
eventually be paid
back by the team. New
fire department
equipment that
includes a new fire
engine and a ladder
truck would also be
paid for by the bonds,
as would replacement
of the roof at the
downtown library and
at the front entrance
of the city
courthouse. Other
courthouse projects
will include front
entrance security
upgrades. The money
set aside for downtown
renovations will be
matched by grant funds
from the Virginia
Department of
Transportation. |
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Public
hospital to use bond
funds to build new
ER
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The publicly
owned Newman
Regional Health, a
25-bed acute care
critical access
hospital serving the
people of Lyon
County, Kan., and
surrounding
communities of
Emporia, is about to
build a new 17-bed,
15,000-square-foot
addition. The
new emergency room
would almost triple
the current space of
5,200 square feet. The
hospital's Board of
Trustees recently
approved bond
funding for the
project. The $20
million in revenue
bonds will fund the
project as well as
retire debt from
bonds issued a half
dozen years ago.
Once approved by the
county's Public
Building Commission,
the hospital will
seek a construction
manager for the
project, which
officials hope will
be completed and
ready for use by the
end of 2018. In
addition to adding a
new emergency room,
other changes will
be made, including
moving the physical
therapy department
and the outpatient
observation unit.
These changes would
help facilitate
future plans to
replace the current
inpatient tower if
needed. Plans call
for refinancing
about $7.4 million
in remaining debt
and using $11.9
million in bonding
and current revenues
to build the new
facility.
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Ohio
State project to
connect school to
neighborhoods
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A $30 million
project to remake the
east side of High
Street between 14th
and 17th avenues to
connect The Ohio
State University
campus to
surrounding
neighborhoods could
begin by early next
year. The project
includes
infrastructure work
to realign and/or
widen streets, bury
utility lines and
build a storm sewer
and a new public
plaza while
reconnecting 14th
and 16th avenues to
High Street. A new
500-room hotel will
be built behind the
plaza, according to
officials of the
university's
development team.
This initiative will
tie in with the
university's plans
for developing the
west side of High
Street. The area
that includes
Mershon Auditorium
and Sullivant Hall
will be revamped as
an arts district,
facilitating music,
art and theater
programs.
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High-speed
broadband coming to
Kentucky county
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Statewide efforts
are currently under
way to create an
open-access
broadband network
capable of providing
high-speed Internet
access to every
county in the state
of Kentucky.
Officials in Warren
County are trying to
get a step ahead by
bringing their own
high-speed broadband
to the entire county
and later connecting
to the state
network. County
administrators are
seeking a request
for information
(RFI) for fiber
installation in the
county. "We
are asking people
who are
participating in one
way or the other to
submit their
proposals -
information on their
companies and what
they would like to
do in order to get
us universal
high-speed broadband
throughout Warren
County," said
Warren County
Judge-Executive Mike
Buchanon (pictured).
Buchanon said
bringing high-speed
broadband to areas
outside Bowling
Green could be about
$27 million. The
county executive
said responses to
the RFI are expected
within three weeks
and the county will
then have a good
idea of what
interested companies
can provide. Details
of the plans can
then be fleshed
out.
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Virginia
plan addresses state
infrastructure needs
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More than
3,200 highway,
bridge, rail,
transit and
bicycle/pedestrian
path projects
will be funded by
the recently
approved Virginia
Department of
Transportation
(VDOT) six-year
improvement plan.
The plan calls for
spending $14.4
billion on these
projects for the
six-year period
beginning July 1.
Officials note that
$10.7 billion of the
funding will be used
for highway
construction, with
the $3.7 billion
balance to fund rail
and public
transportation
projects. Also
approved was VDOT's
$5.35 billion budget
for Fiscal Year
2017. Maintenance
projects on the
state's highways
will garner the
largest part of the
total, at about 40
percent. Another 35
percent will be for
highway
construction.
Payment to city and
county street needs
will total $2.13
billion.
Construction will
garner $1.87
billion.
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News
about
public-private
partnerships
(P3s)
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California
city considers P3
for parking garage
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Efforts to breathe
new life into the city
of Menlo Park, Calif.,
could include a new
parking garage. City
officials are
exploring options
geared toward a
revitalization of the
city's downtown area.
City council members
recently heard a
presentation to
explore its options
and a parking garage
was high on their list
of considerations. A
recently authorized
city survey showed
that two-thirds of the
respondents were in
favor of an
above-ground parking
garage. The
council heard from two
commercial real estate
consultants, who said
a two-level garage
would cost about $4.6
million and a
four-level facility
would cost about $9.3
million. Officials are
hoping to draw on the
success of nearby Danville,
which built a
parking garage
downtown that
resulted in
increased traffic to
the area to support
downtown businesses
as well as provided
parking for
employees of those
businesses. City
officials have
instructed the real
estate consultants
to meet with
developers to
discuss the
possibility of a
public-private
partnership (P3/PPP)
as an alternative to
using taxpayer
dollars for funding
a parking
garage.
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Maryland
Purple Line gets
$874.6M TIFIA loan
|
 The
consortium of
private-sector
companies that
recently won a
$5.6 billion
contract to build
and operate the
Maryland Purple
Line light-rail
project has been
awarded an $874.6
million
Transportation
Infrastructure
Finance and
Innovation Act
(TIFIA) loan. The
funds will be used
to help defray the
costs of the 16.2
mile project that
will connect
Montgomery and
Prince George's
counties in
Maryland. The
east-west line
will also include
21 stations. In
making the
announcement of
the loan, U.S.
Transportation
Secretary Anthony
Foxx said the new
rail line will
offer an
alternative form
of transportation
that will allow
residents along
the line "improved
access to jobs,
education and
medical care and,
overall, will help
improve the
quality of life."
Federal Transit
Administration
(FTA) officials
also are working
with the Maryland
Transit Authority
to secure an
additional $900
million toward the
project through
the FTA Capital
Investment Grant
Program. Another
$36 million in FTA
grant funds will
also be
appropriated for
the project.
Calling the Purple
Line a "unique
public-private
partnership" that
allows the state
to leverage
additional federal
funding, FTA
Acting
Administrator
Carolyn Flowers
added, "The Purple
Line will help
residents access
one of the state's
largest job
centers as well as
its flagship state
university without
having to drive on
heavily congested
roads." |
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P3
campus projects
upcoming for Purdue
University
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Three major
projects on the
"wish list" for
Purdue University
could become
realities now that
the university has
hired a master
planner to supervise
a public-private
partnership for a
planned $1.2 billion
community-within-a-community
- the Purdue
Innovation District
- on west campus.
The development
process could take
up to two decades.
It will include a mix
of residential
housing, commercial,
entertainment and
industrial
developments. The
master planner will
first come up with a
proposal for what
kind of housing,
retail and
university and
commercial uses will
be incorporated. The
firm then will be
tasked with
recruiting
developers to build
on land owned and
leased by Purdue
Research Foundation.
The master plan
could be completed
by late this year or
early 2017. Among
the projects
university officials
have at the top of
their list of
possible early start
times once the plan
is approved are a
privately developed
800-bed housing
project for graduate
students and
upperclassmen, a
hotel and convention
center and an
innovation hub that
would bring the
university's
innovation-to-commercialization
program to the same
facility and provide
space available for
lease by venture
capital firms.
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Philly
opens health care,
literacy, recreation
facility
|
 A
public-private
partnership (P3/PPP)
has led to the
opening of a
combined health
care, literacy and recreation
facility in South
Philadelphia. The
new South
Philadelphia
Community Health and
Literacy Center not
only includes a
Children's Hospital
of Philadelphia
(CHOP) pediatric
care unit, but also
a community health
center, a community
library and a
playground and
recreation center.
The $42.5 million
facility is hailed
as the
first-of-its-kind
P3. "Residents
can come to this
state-of-the-art
building for
one-stop shopping
for health care,
education and
recreation," said
Mayor Jim Kenney
(pictured). The
project grew out of
the need of all of
its eventual
partners. The
hospital's
neighborhood clinic
needed more space
for expansion.
Nearby, the city
owned a primary care
health clinic, a
small recreation
center, playground
and library. All of
the facilities were
in need of
renovations and
equipment upgrades.
CHOP officials
offered as a
solution a
comprehensive
medical clinic to be
built on the city's
land that would
house current and
future hospital
medical practices.
It would also build
a recreation center
and playground twice
the size of the
current facilities
and what was
described as the
city's first "21st
century" library.
The project was
financed by $30
million in operating
revenue from CHOP,
$1.3 million from
the Free Library of
Philadelphia, $9.8
million in equity by
New Market Tax
Credits and the
city's $2.2 million
contribution toward
construction..
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Fremont's
first P3 brings
mixed-use project
downtown
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The
first-ever
public-private
partnership (P3/PPP)
for the city of
Fremont, Calif.,
will result in a
mixed-use
development that
city officials are
hopeful will lay the
foundation for
revitalization of
the downtown area.
In addition to being
the city's first P3,
it is also the
downtown area's
first mixed-use
development. It will
be constructed on
six acres of land
currently owned by
the city. However,
as part of the P3,
the title will be
conveyed to the
developer. The $110
million development
is expected to
include 157
market-rate
condominiums and
about 21,000 square
feet of retail and
restaurant space.
The development will
include two
five-story buildings
that will have
retail shops and
restaurants on the
ground floor and
about 80 condos on
the upper floors.
Additionally, there
will be 11
three-story
buildings behind
them with 76 condos
inside. The city
hopes in the future
to build a community
center, city
administrative
offices and a public
plaza adjacent to
the multi-use
development. The
community center and
plaza will carry a
$30 million price
tag and are expected
to be under
construction late
next summer.
Additionally, the
city is planning a
new $161 million
city hall in 2020.
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Contracting Pipeline,
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