Volume 11, Issue 20 - Wednesday, May 22, 2019
Mary Scott Nabers, President/CEO, Strategic Partnerships, Inc.

Opportunities continue to be abundant in the health care sector. Because the demand for services is great, competition between health care providers is extremely keen. Every company or system is eager to capture more market share, and that is generating thousands of contracting opportunities for other companies. In 2018 alone, 12 hospital systems announced construction projects with cost estimates exceeding $1 billion each.

Because health care groups are competing so aggressively, they are interested in new or upgraded facilities, top-of-the-line equipment, user-friendly websites, and leading-edge technology. They also want to lower operating costs, so there is interest in services that offer more efficiency or cost reductions - energy audits, outsourced equipment maintenance, and comprehensive facility services that include everything from security to landscaping. Many 24-hour health care clinics and emergency centers want LED lighting for parking areas and upgraded technology that facilitate faster check-in time. Hospitals and health care facilities also purchase marketing assistance, fundraising expertise, and public relations services.

Every midsize to large city wants top-tier hospitals, and increasingly city leaders are incorporating health care facilities into urban redevelopment plans. That's because hotels and restaurants follow hospitals, and the retail establishments enhance the tax base.

On the flip side, economic and societal changes are affecting health care services in rural areas. Many less-populated areas are losing hospitals, clinics, and health care providers. A recent study sponsored by the University of North Carolina's Center for Health Services Research found that nearly 700 rural hospitals are at risk of closing because of funding challenges. These regions are seeking telehealth and telemedicine services. To facilitate those capabilities, many smaller cities and counties are announcing contracting opportunities for the last mile of broadband access, and numerous federal programs are allocating funds for such projects.

Upcoming opportunities related to health care can be found in every state and region. In 2018, the University of California, San Francisco announced plans to build a $1.5 billion hospital to replace an aging, outdated facility. The old facility no longer met seismic code requirements and had outdated HVAC systems and equipment. It could not accommodate electronic records or modern imaging equipment. A replacement facility will be a part of a revitalization project for the university's Parnassus Heights campus.

Check out the latest article from our Texas Government Insider Newsletter!
Illinois - Gov. J.B. Pritzker unveiled a $41.5 billion preliminary infrastructure plan on May 17 to lawmakers at the state Capitol. The draft "Rebuild Illinois" plan addresses the "C" grade the state's infrastructure received from the Illinois Section of the American Society of Civil Engineers in 2018.

Pritzker's plan calls for $28.58 billion in spending on roads and bridges, mass transit, rail, aeronautics and other transportation. Education would receive $5.94 billion for state universities, community colleges and PreK-12 institutions. More than $4.4 billion would be directed to state facility infrastructure projects, and $1.01 billion would go to environmental and conservation needs. The plan also included funding for statewide broadband deployment, affordable housing, hospital and health care transformation and economic and community development.

The state would pay for these proposals by doubling its gas tax to 38 cents per gallon and increasing vehicle registration fees among other tax increases. Some of the funding would come from federal and local monies.
Texas - Dallas Fort Worth International Airport (DFW) will join with a major airline carrier to invest $3 billion to $3.5 billion to build a sixth terminal, F, and enhance Terminal C to keep up with record-setting use.

Design work will begin immediately on the new Terminal F to be located south of Terminal D to allow for up to 24 gates based on demand. The new terminal is set to open as early as 2025, according to a press release from the airport. DFW welcomed 69 million customers in 2018, and officials projected it will serve 73 million people in 2019.

The partners expect bonds to finance the investment and airline rates and charges to repay the bond over its lifespan.
California - A direct loan of $225 million from the U.S. Department of Transportation (USDOT) will help fund the Interstate 10 Corridor Project to address regional transportation and mobility in southern California. Officials stated they expect construction to start in early 2020 and to take four years to install express lanes from the Los Angeles County line to Interstate 15.

The Transportation Infrastructure Finance and Innovation Act is the source of the loan, which is about a quarter of the project's $929 million estimated cost. Local, state and federal dollars will comprise the remaining funds.
Texas - Two newly created state funds could be the source of billions in disaster relief if legislation passed last week by the Texas House advances.

The Flood Infrastructure Fund would pull $3.3 billion from the state's rainy day fund, aka the Economic Stabilization Fund. The Texas Infrastructure Fund would grant cities, counties and other political bodies the right to apply to the Texas Water Development Board for grants or low- or zero-interest loans.

Senators also are drafting SB8 to fund state flood plan initiatives under a plan akin to the State Water Plan. Regions around the state would be invited to submit proposals to the Texas Water Development Board for approval.
New York - The state's Dormitory Authority released a request for qualifications (RFQ) to design and build an estimated $690 million Life Sciences Public Health Laboratory in Albany. The RFQ deadline is June 20.

The facility would allow the state to consolidate scattered Department of Health Wadsworth Center staff and resources in more than 949,700 square feet of total building space into one 763,000-square-foot laboratory campus on 27 acres of the Governor Averall Harriman State Office Building Complex in Albany.

The new facility would include a main laboratory building, trans-shipping and warehouse facility, all hazards receipt facility, central utility plant, vehicle and equipment garage, security checkpoint gatehouses and surface parking.
Century Center
Indiana - City leaders in South Bend are mulling over an $80 million proposed expansion to the city's convention center, Century Center. The new plan calls for doubling the space of the existing center, which is nearly 50 years old, and adding an eight-story hotel.

One idea for the proposed expansion is the inclusion of an esports facility to host competitive video gaming events. Consultants suggest that with few gaming venues in the region, the center's investment in gaming technology could bring significant economic returns.

City leaders assert that an expanded and updated convention center will bring millions in economic activity to the city. Slightly more than half of the money for the expansion would come from public financing and the rest would come from private-sector partners.
Alaska - Last week the Ketchikan City Council voted to move forward with a potential public-private partnership (P3) to develop the Port of Ketchikan. This move is the first step in plans to reconfigure the dock to accommodate the large ships - 1,000 feet or longer - that will be entering the Alaska market in the near future.

Because the cost to improve the dock is estimated at up to $150 million, the city is looking into a P3 to complete the project. City officials want the project to move quickly, and hope that the request for proposals can go out soon so that work can start at the end of the cruise season in October.
The National Association of City Transportation Officials (NACTO), along with the Natural Resources Defense Council and Delivery Associates, will work in close concert with transportation departments in five cities to design and implement high-quality bike and transit corridors by the end of 2020. This work is expected to help the cities of Atlanta, Boston, Denver, Minneapolis and Philadelphia meet or beat their near-term carbon reduction goals. The work will be based on what NACTO calls its accelerator model.

The NACTO accelerator will help these cities build out feasible projects, implement achievable timelines and conduct public outreach around the importance of such projects. The accelerator will enable cities to jump-start the process of building out a connected network of green streets, which might include fully separated bike and transit lanes, and much less parking.

Funding will come from the Bloomberg Philanthropies' American Cities Climate Challenge, which was announced in January 2019. For two years, 25 cities, including the five working with NACTO, will get funding and technical assistance to help meet climate change goals.

NACTO is advising all 25 cities in the Climate Challenge on the work accomplished with the five accelerator cities in hopes that it will inspire more places to pursue similar courses of action. Follow the progress of NACTO's five Climate Challenge focus cities here and learn more about the Bloomberg American Cities Climate Challenge and all 25 selected cities here.
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Enterprise Center
Missouri - This week the Missouri Legislature signed off on funding for the renovation of the Enterprise Center, the home of the city's hockey team, St. Louis Blues. The center would get $70 million in state subsidies over two decades beginning in fiscal 2022: $2.5 million annually for the first 10 years, then $4.5 million each year for the next 10.

Supporters hope that by completing needed renovations they can beat out competitors and attract more national sporting events, such as NCAA or U.S. Olympic events. The Enterprise Center already is scheduled to host the NHL All-Star Game, NCAA men's basketball tournament games and USA Gymnastics Olympic trials in 2020.
New York - A request for proposals (RFP) has been issued by the New York Department of Transportation (DOT) for an engineering firm to improve mobility on Route 17 to accommodate increased traffic through Orange and Sullivan counties. The work is part of an up to $5 million Planning and Environmental Linkage study (PEL), which includes identifying priority locations and conducting environmental assessments and preliminary engineering, including the study of a possible third lane.

A coalition called 17-Forward-86 is seeking $500 million from New York state to add a third lane north and south on Route 17 between Harriman in Orange County and Exit 103 in Monticello, Sullivan County, to enable future designation as Interstate 86 in the region. A 2013 state Transportation Corridor Study of the 47 miles between Harriman and Monticello resulted in a recommendation of a third lane on the 22-mile segment between Harriman and Route 211 in the town of Wallkill. The coalition, which wants to implement $100 million annually for five years beginning in March 2020, is hoping this will be part of the DOT's next capital plan, which is expected to begin in April 2020.
Fargo Civic Center
North Dakota - Performing Arts Task Force members in Fargo selected a downtown site for a proposed performing arts center. They identified the city's Civic Center as the preferred site.

They recommended demolishing the existing facility, which was erected in 1961, and building a 2,500-seat venue with access to Fargo's skyway system. Consultants updated a feasibility study on May 14 with more recent community feedback that indicated a high level of interest in the project. The study originated in 2015.

Task force members will meet June 11 and prepare a recommendation to deliver to the City Commission this fall.
California - The city of El Monte will contribute $42 million over 25 years to the El Monte Gateway project after councilmembers approved the agreement May 17.

The $700 million mixed-use project is set to include three hotels, several restaurants, a movie theater, gym and affordable and luxury apartments.

City officials said they will pay the developer some of the tax revenues the city collects from the development's future tenants over 25 years via a 2013 state law. In return, they expect to receive $72 million in revenue over the same time.
Atlanta City Detention Center
Georgia - City councilmembers in Atlanta approved, 11-1, a resolution to establish a 25-member task force that would review the Atlanta City Detention Center for repurposing.

Councilmembers initially discussed a resolution in August to call for closing the jail, but they took no action. The city opened the center in 1995 with 1,300 beds for $56 million, but officials said the facility had an operating budget of $33 million in 2018.

"The process will be an inclusive one to ensure stakeholders and those most impacted by the criminal justice have a seat at the table," Mayor Keisha Lance Bottoms said in a press release.

Alabama - The Birmingham Airport Authority selected Ronald F. Mathieu as the next CEO of Birmingham-Shuttlesworth International Airport on May 16. Mathieu previously served as the executive director of Bill and Hillary Clinton National Airport in Little Rock and in leadership positions at Fort Lauderdale/Hollywood International Airport and Newark International, LaGuardia and JFK International airports. He replaces Sylvester Lavender, director of finance, who has served as the Birmingham airport's interim president and CEO since Aug. 1, 2018.
Indiana - The Capital Improvement Board of Managers of Marion County, Indiana approved Andrew Mallon as its new executive director on May 10. Mallon succeeds Barney Levengood who is retiring after 28 years in the role. Mallon previous served as the city of Indianapolis' corporate counsel and as government services chair at a Carmel-based law firm for 10 years. He also headed the Marion County Election Board from 2007-2009 as director of elections and served as assistant corporation counsel for the city from 2005-2007.
New York - Onondaga County has a new director of economic development after selecting Robert Petrovich for the job. Petrovich started in the county's economic development office in January as deputy director. Prior to that, he served as deputy commissioner of the county's transportation department for six years. He has experience in real estate as a president and principal broker for seven years and as a senior executive at a redevelopment firm from 1998 to 2012. His predecessor, Julie Cerio, took a position in the county's legal department.
North Carolina - State Board of Elections members in North Carolina appointed Karen Brinson Bell as the agency's new executive director, effective June 1. Brinson Bell comes from a nonprofit voting center where she was deputy director. She also was elections director for four years at Transylvania County and served with the NC State Board of Elections voting systems division for five years. She takes over for the outgoing Kim Strach who directed the state board for six years.
Oregon - Portland State University (PSU) has named Stephen Percy as its acting president to fill the vacancy left by Dr. Rahmat Shoureshi who resigned May 10. Percy is the university's dean of College of Urban & Public Affairs and a political science professor. Prior to joining PSU, he was the founding dean of the College of Public Affairs at the University of Baltimore and a professor of public and international affairs. Percy has co-authored six books and one textbook and worked as an administrator and faculty member at the universities of Wisconsin-Milwaukee and Virginia.
Massachusetts - Martha's Vineyard Airport tabbed Cindi Martin as its new director. Martin was the former director for 10 years at Glacier Park International Airport in Montana. She succeeds Ann Richart who left to become Nebraska's state aviation director. Since retiring from Glacier Park, Martin has worked as a contractor for the American Association of Airport Executives.

Ohio - The city of Trenton selected Marcos Nichols as its new city manager, starting June 10. Nichols is the city of Hamilton's director of civil service and personnel department. Prior to that, he held several administrative positions with the city and worked in warehouse management.
Kansas - Bridgette Jobe has been named as the new director of the division of tourism for Kansas, effective in July. Jobe has served as executive director of the Kansas City Kansas Convention and Visitors Bureau since 2005. She has worked for the bureau since 1998 when she started there as tourism manager.  Jobe has been the chair of the Governor's Council on Travel and Tourism under three consecutive Kansas governors.
Georgia - Board members at the Georgia Ports Authority promoted vice chairman William McKnight to chairman May 20. McKnight, who has served on the board since 2018, will assume his duties July 1. He has worked for his family-owned construction company since 1979 and been its president since 1996. McKnight takes over for outgoing Port Authority chairman Jimmy Allgood who led the board for three years.
Maryland - The University System of Maryland Chancellor Robert Caret announced his retirement earlier this month. After serving in the role for five years, Caret will step down in June 2020. He previously was president of the University of Massachusetts system, Towson University and San Jose State University.
Indiana - The City of Gary appointed A.J. Bytnar as its new executive director of planning and redevelopment after Joseph Van Dyk resigned earlier this month. Bytnar previously served as director of planning and development for the city of Lowell, Indiana, an economic development specialist at the city of Fishers, a real estate analyst at the Indiana Housing and Community Development Authority and executive director of the Tipton Indiana Plan Commission. He also was a city planner at the city of Hobart, Indiana, and a planning administrator for the Lake County Plan Commission.

Michigan - Harbor Springs selected Victor Sinadinoski as its new city manager earlier this month. Sinadinoski takes over for interim city manager Nick Whitaker who filled in after former city manager Tom Richards retired in March. Sinadinoski most recently served as director of planning and economic development for the town of Milton, Vt. Previously, he was deputy zoning administrator and development review board coordinator for the town of Middlebury, Vt.
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