Public-Private Partnerships have long existed as a tool for development that neither the public nor private sector could do alone. Given the volatility of capital markets, the opportunity to participate in public-private partnerships has never been more attractive and/or necessary. Some developers have had to cancel or postpone planned developments, as they cannot secure the debt and/or equity needed to fund their projects. Conversely, the public sector is frequently faced with the challenge of downward pressure on assessed values of real estate, causing a reduction in ad valorem tax revenues, as well as fluctuating sales-tax revenues due to the elastic nature of this revenue source.
Most private developers think of two traditional classes of capital – debt and equity, and often overlooked, is the capital that can be secured through Public-Private Partnerships. The private-sector developer benefits from such a partnership because the incentives offered by the public sector can be viewed as part of the project’s capital structure. In addition to enabling a project to get off the ground, such incentives can significantly enhance the return on the developer’s cash investment.
Public-Private Partnership services include:
- Partnership – Assist in negotiating partnership with both public and private stakeholders
- Stakeholder Action – Establish credibility, economic foundation and belief in the Stakeholders that the PPP can succeed. Build consensus with civic leaders. Create a buzz in the community. Engage the community. Create community buy-in and support for public investment
- Catalyst – Show results –get projects built. Effectively change the constituent psychology and build public trust with new development. Build community support for greater financial returns to public sector
- Financing – Identify avenues for funding mechanisms for public sector and public-private projects, including development agreements and funding tools for this vision to succeed. Prepare the data and communication tools necessary to support these financing mechanisms. Seek and achieve financing and incentives tools
- Planning – Creation of a comprehensive plan that addresses character, mobility, regulatory, market and environmental issues. Establish design principles, urban planning recommendations and financial analysis
