Volume 9, Issue 18 - May 3, 2017
Mary Scott Nabers, President/CEO, Strategic Partnerships, Inc.
The low-level buzz surrounding the $1 trillion Trump administration infrastructure plan is starting to swirl again, and private-sector firms interested in participating in water industry-related projects should pay close attention. 

Many government contractors, potential partners and investors in public-private partnerships (P3s/PPPs), are heartened by the very recent release of a Request for Information (RFI) by the U.S. Department of the Interior's Bureau of Reclamation. The fact that this agency is seeking feedback from the private sector regarding use of P3s for water projects could be an indicator of growing interest by the federal government. It also signals the federal government's confidence in P3s/PPPs as a way of completing large water projects. 

Reclamation also is planning a forum on May 9 in Denver to introduce potential public and private partners to alternative financing solutions like P3s/PPPs. Agency officials plan to discuss projects that could benefit from alternative financing and help meet increasing infrastructure demands without depending solely on federal funding. 

In This Issue
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There is a population of space savers who enjoy being boxed in where they live and work. Tiny homes and shipping containers seem to be showing up more in cities as people look for lower costs, easy upkeep and a smaller environmental footprint. But standard building codes have made it difficult to legally build a small space that is less than 1,000 square feet. A city makes decisions on home building based on building codes, which covers how a house is built. They also look at zoning, which covers where and how many houses can be placed on a property, and how services and utilities must be accessed. 

There are some loopholes and helpful tips to get around regulations that are offered by the American Tiny House Association. For instance, a tiny home could be added as an accessory dwelling unit to a property that has a "regular-sized" home on the land. Most cities have adopted the country's local building codes from the International Residential Code for one- and two-family dwellings, which contains size specifications like rooms (except bathrooms and kitchens) that must be at least 70 square feet, while ceiling height must be at least 7 feet. 

Zoning regulations determine the size requirements of your home based on what zone it's located in. Cities and counties have different rules, but most of the time, the size must be at least 1,000 square feet. City and county officials may not be very accepting of adding a tiny home to a neighborhood with larger houses, but building micro-home neighborhoods is becoming more acceptable. These homes are for cities that want to offer affordable housing to those with tight incomes or as a place to live for those without a space to call home.

Upcoming contracting opportunities

Ohio- The state of Ohio will select an architect/engineering team to provide design and construction management services to renovate and construct an expansion of the Pickaway Correctional Institution (PCI). The project, estimated to cost around $119 million, will house about 3,300 inmates within the current parameters of the PCI and the abandoned Orient Correctional Institution (OCI) facility over a multi-year timeframe.

PCI was utilized as a mental health hospital dating back to the 1920's, and in 1984, it was opened as a correctional facility. A facilities assessment study found that more than $100 million would be needed to improve the condition of the facility to an acceptable level because of its age. Studies by the Ohio Department of Rehabilitation and Corrections and the Ohio Facilities Construction Commission have determined the most efficient manner to utilize PCI in the future. The facility's renovations and constructions will allow for effective housing of inmates as well as services for mental health patients and for geriatric and medically fragile populations. In addition, many abandoned buildings at the OCI will be deconstructed and replaced. The upgraded and new facilities will become a part of PCI through the realignment of the current security parameter. 

Construction on 800,000 square feet of space includes facilities for housing, support services, food service, medical services and administrative spaces. The site will expand from 25 acres to 75 acres. There will be $9 million set aside for construction on early site work and deconstruction work in the first phase. Total funding for first phase is around $19 million. Phase 2 and 3 each have funding of $50 million, and funding is expected to be available in future budget periods. Response deadline is May 12 for a request for qualifications.
Joe Hogsett
Indiana- Judges of the Marion Circuit and Superior Courts announced that civil and criminal courts will be relocated from the Indianapolis City-County Building to a proposed Criminal Justice Complex on the southside of the city. The County's Circuit and Superior Courts are planning to build a more effective, efficient, and reformative court system that allows the community greater access to the justice system. In January, Mayor Joe Hogsett announced that the Community Justice Campus would be built in the Twin Aire neighborhood. The $575 million facility will house between 2,600 and 3,000 beds and will include an assessment center. 

Under Hogsett's plan, the city will use a design-build delivery model for most of the project and has selected a design and engineering firm that worked on former Mayor Ballard's proposed justice center plan to serve as a consultant on the development. The city will release a formal request for bid proposals on July 1. Responses to these proposals will be due back to the city by Nov. 1, with the winning bid scheduled to be selected and proposed to the council by Jan. 1, 2018.
Eric Holcomb
Indiana- Indiana Gov. Eric Holcomb recently signed a road funding package into law that allocates nearly $5 billion over the next seven years to reconstruct state highways, bridges and local streets. This will be the largest, continuous, sustained building program for the state and one of the largest in the nation. The recently passed House Enrolled Act 1002, increases a variety of taxes and fees to fund the construction. A noticeable 10-cents-per-gallon fuel tax increase takes effect July 1 with a one-cent-per-gallon increase over the next seven years. 

Beginning in 2018, Indiana residents will pay a $15 vehicle registration fee to support these local road projects. Electric ($150) and hybrid ($50) owners must pay an additional annual fee since their vehicles use comparatively less gasoline. Indiana will seek federal approval to toll its interstate highways to capture the revenue from out-of-state drivers. The average Indiana motorist will pay about $63 a year in higher fuel taxes and new vehicle registration fees, according to legislative estimates.
Georgia- Georgia Tech is looking to utilize the Dalney Building as an opportunity for new development, performance landscape redevelopment, managing storm water and creating the least impact on the ecosystem with new biodiversity/biohabitats. 

The design and construction of the building, which is estimated to cost around $39 million, will be built to model the highest level of efficiency, daylighting and energy conservation. The office building will also include a black water reclamation facility which will provide discounted water to the 10th Street Chiller Plant for the cooling needs of the campus. A Blackwater feasibility study has been completed by Georgia Tech and it estimates substantial water savings if the facility was put in place. The facility would also operate as a core laboratory and demonstration resource for students and faculty not only from Georgia Tech, but other schools.

At least 800 parking spots will be available at the parking deck with a PV array planned for future implementation at the top level of the deck. The design and construction is expected to take about 18 to 24 months with construction being completed in August 2019. Deadline for submission of statements of qualifications is 10 a.m. on May 19.
California- L.A. Metro has issued a request for proposals (RFP) for a feasibility study exploring the possibility of building a new transit line through the Sepulveda Pass, one of the most troublesome choke points in the entire Los Angeles region. The RFP seeks a consultant to identify and evaluate a variety of high-capacity transit concepts, including light rail, subway and bus rapid transit. 

The proposed line being studied would serve the 11-mile stretch that connects the Metro's Orange Line bus route in the San Fernando Valley to the future extension of the Purple Line subway. The line would also connect with the Metro Expo Line on L.A.'s Westside. The feasibility study is estimated to take about 14 months to finish. LA Metro is hopeful that the project will be ultimately delivered by 2033. Funding for the project includes $1 billion through Metro's 2008 Measure R sales tax, $6.8 billion through the recently passed Measure M sales tax, as well as other sources.
New Jersey- Essex County has granted the state full access to Frontier Town to evaluate the county-owned land to curb trespassing and to ensure that relics of the former theme park are secure. County officials have suspected that these relics are being illegally taken from the property and are hoping that the state Department of Environmental Conservation (DEC) can secure these items. Since its closure in 1998, Frontier Town has become a hot spot for explorers and cars are often seen parked at the site. There are plans in place to transform the site into a tourist attraction called the Gateway to the Adirondacks which state and local officials hope will revitalize the local economy. A total of $32 million in state investments was approved earlier this month. 

Last year, cost reasons prevented the county from going forward with plans to issue a request for proposals (RFP) on asbestos remediation of hotel properties at the site because of cost reasons, but a future RFP is not completely ruled out. Costs for remediation are still not clear and county lawmakers would have to approve any clean-up plans. Essex County has applied for a $800,000 Northern Border Regional Commission grant that could help with costs. Lawmakers from the DEC, North Hudson and Empire State Development signed a resolution to ensure the continuation of work on the site despite the incomplete easement and land transfer process. These stakeholders will create an RFP to seek responses for private sector firms to compete for redevelopment rights.
New York- The New York City Housing Authority (NYCHA) is bringing market-rate housing to the area with a mixed-use project slated for LaGuardia Houses on the Lower East Side.The Towers in the Park plan will help raise revenue to improve outdated infrastructure and fulfill important maintenance needs.

NYCHA recently announced its intentions to develop a mixed-income tower on a Madison Street parcel between Rutgers and Jefferson Streets. This plot of land is currently occupied by parking spaces and a trash compactor. The housing authority is calling for a 35-story skyscraper that contains as many as 500 apartments. Half of these units would be market-rate while the other half would be set aside for residents earning, at most, 60 percent of the area median income, or $51,540 for a family of three.
A request for proposals (RFP) will be released next fall or winter. The city will select a winner in spring 2018, with the decision being based largely upon how closely the developers reflect the concerns of the community. Once the developer is chosen, NYCHA will begin a participatory budgeting process where residents will provide feedback on improvements most needed at LaGuardia Houses, which is the agency that is committed to designating half the revenue from the new development into infrastructural upgrades in the public houses complex.The development requires roughly $70 million to complete these improvements, with construction being planned for 2019.
Pennsylvania- The Pennsylvania Housing Finance Agency (PHFA) announced on May 1 that the entity is accepting bids for the purchase of $2 million in tax credits linked to the new Community Revitalization Fund Tax Credit. Money collected from the highest bidders will be allocated to fund the construction or rehabilitation of mixed-use developments in Pennsylvania communities. These tax credits will be used by the winning bidders, which can be companies, organizations or individuals, to reduce their state income tax liability. The intent of this bidding process is to raise as much funds as possible from this $2 million in tax credits to provide for a significant investment in various community revitalization projects.

The projects to receive this funding will be selected during a competitive request for proposals process later this year following the bids process. This new tax credit program was created as part of the Commonwealth's fiscal year 2016 budget and will be implemented July 1. PHFA was authorized to sell these tax credits through a directed or negotiated sale to any qualified taxpayer. It is forecasted that although the tax credit awards will be made in 2017, these awards are not effective for utilization until 2018 against a 2017 tax liability. Bids for the purchase of the tax credits are due by 2 p.m. on May 22.
The internet provides a plethora of information, both good and bad, and allows us to be social and make transactions without ever leaving a room. But there can be consequences if the sites you visit are sketchy, if you don't think twice about clicking on pop-up ads or email links and if your connection to the internet has an unwanted visitor. 

The United States makes the news weekly regarding cyber security because of hackers, viruses and other unlawful acts that can get an individual or a business into trouble. And worst of all, it can be very difficult to find the perpetrator. If it is any comfort, the U.S. is not alone when it comes to cyber security problems and in some cases, America isn't necessarily number one on the list of countries that get attacked online. 

Comparitech researched and compiled a graphic of what countries are being attacked the most and who is best prepared for cyber attacks. The data provides a number of metrics that demonstrate the variety of threats we face online, and looks at which countries receive the highest amount of distributed denial of service act (DDoS) attacks, cyber espionage and web application attacks. Find out which countries give their users the most freedom on the internet, and which are least prepared by cyber attacks. The data will also provide how much cyber crime is costing various countries. 
News about public-private partnerships (P3s)

Arizona- Coconino County and the City of Flagstaff have partnered to release a request for information (RFI) for a Courthouse Development Project, and also to ask for any ideas on potential projects in the Flagstaff area. Due to the deficiencies of Flagstaff's municipal courthouse, the city passed Proposition 412, which authorized the city to bond $12 million for a new courthouse and parking facility in the downtown area. 

The county has also been working on its Facilities Master Plan to expand the space in the existing county courthouse while searching for better space solutions for some non-justice related services. The best ideas generated by the RFI will be used to create the request for proposals (RFP). Instead of just releasing an RFP to begin with, the city and the county released the RFI first so that they could be open to all possibilities, including a public-private partnership (P3). Both units of government have had success with P3s in the past, so this avenue needed to be explored.
New Mexico- To help stimulate development on the west side of Albuquerque, city leaders are releasing a request for proposals (RFP) to see what kind of developers are interested in a public-private partnership. Specifically, they want to turn the corner of Central and Unser into a major hub with projects ranging from retail to housing. Currently, this parcel of land on the northwest corner of Central and Unser is empty, but city leaders want to turn this $1.4 million plot of city-owned land into something great for the community. 

City officials say that the West-Central corridor is beginning to see an explosion of growth in new developments from spending millions in infrastructure improvements. There is currently a library, pharmacy and medical cities in the vicinity and this land would be a prime location for more retail. The city will be taking in requests for proposals until Sept. 1.
California- The Civic Center is one of the busiest parts of downtown Los Angeles during work hours, but foot traffic drops off considerably after people leave their jobs for the day. There is a recently approved Civic Center Master Plan that could change this issue. Completed in January, the plan was prepared by the office of the City Administrative Officer and an architectural firm that lays out six distinct phases of work spread over 15 years. This master plan signifies a sweeping vision to transform some city-owned properties in the heart of downtown with the demolishment of some existing structures and the construction of new buildings with office, residential and retail functions in mind. City Hall East and South are among the properties slated for future demolition. 

The plan contains six steps. First on the block is the Parker Center replacement which would contain 750,000 square feet of space, with 37,500 square feet dedicated to retail and restaurants. This $536.4 million effort would contain a four-story underground parking structure, with work slated to begin in 2018. Second, the master plan calls for developing almost 570,000 square feet of housing on the site of City Hall South, with 90,000 square feet of retail space. The vision includes bringing in a private developer and offering a ground lease. Third, the plan would transform the Los Angeles Mall, the sunken corridor of shops and restaurants. Work would begin in 2021 to create a 545,000-square-foot, $500 million city office tower with more conventional street-level retail and underground parking. This would be covered either through traditional means such as the city floating bonds, or ideally through establishing a public-private partnership with a developer. Fourth, the construction of a small 911 call center at First and Los Angeles and the adjacent Aiso Street Parking Garage would call for a private developer to build a 610,000-square-foot structure with 90,000 square feet of retail. Work would begin in 2024 and wrap in 2027. Fifth, the plan details the replacement of Los Angeles Police Department's Metropolitan Detention Center with another office tower that will contain 360,000 square feet of office space and ground-floor retail. Lastly, the master plan would demolish City Hall East and create a plaza for city and community events scheduled to be completed by 2032. 
Georgia-  The Columbus Golf Authority is launching a fundraising campaign for a new clubhouse, with the intent to raise at least $1 million and organize city support for the project. The 45-year-old Bull Creek Golf Course is in need of improvement and the city's own assessment of the course has previously found that the clubhouse is deficient in many ways. The city's current financial situation inhibits the possibility of a replacement project for the upcoming fiscal year but the clubhouse is a venture that the city could be ready for by 2019. 5,000-square-foot clubhouse would set the city back between $1.25 and $1.5 millionBull Creek is owned by the city of Columbus, but not city-funded. When they don't bring in enough revenue, the difference is made up by the city's general fund. 

A panel from the Columbus Golf Authority will be seeking support from key leaders and groups for assistance in funding a partnership plan for a new clubhouse and efforts will be made to prepare a campaign reaching out to citizens to indicate their support for a public-private partnership. Business and industry leaders are being asked for their support and every authority member has pledged personal funds to kick off the campaign. 
Calendar of Events 

June 25 from 1-5 p.m. 
On June 25 between 1-5 p.m., Strategic Partnerships, Inc. (SPI) will be facilitating a workshop with assistance form the Association for the Improvement of American Infrastructure (AIAI). Join President and CEO of Strategic Partnerships, Inc. Mary Scott Nabers for this workshop: Financing Smart City Projects- What you need to know about public-private partnerships and alternative funding options

The workshop will provide insight on how to evaluate P3 projects, how to attract private investors, how to tie revenue generating initiatives to large public projects of all types...and much more.
June 18-20
SelectUSA Investment Summit will be held June 18-20 at the Gaylord Hotel - National Harbor in Washington, D.C. During the event, Strategic Partnerships, Inc. (SPI), with assistance from the Association for the Improvement of American Infrastructure (AIAI) will facilitate a 3-hour symposium covering the basics of Public-Private Partnerships. Experts from throughout the U.S. will be on hand to provide hands-on assistance to attendees. 
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