Public-Private Partnerships
Development solutions for public projects
As municipalities and states face continuing budget deficits, reduced revenues, and cutbacks in capital budgets, they are by necessity seeking alternative ways to finance the delivery of essential facilities. As a result, public-private partnerships (P3) that bring private-sector expertise, financing, and creative solutions to the public sector have gained greater attention. Successful P3 projects have included convention center hotels, sports venues, K-12 and higher education projects, and public safety, justice, corrections, health, and public assembly facilities.
At Balfour Beatty Construction, our track record in successful P3 development speaks for itself. We operate as a trusted advisor in the areas of financing, political, and statutory strategies, as we listen to our customer's needs, ask the right questions, and work with them to craft the most efficient and effective solution. For more information on our solutions, contact Ken Portnoy, Vice President of Public-Private Partnerships.
What is P3?
The term P3 may mean different things to different people. As defined by the National Council of Public-Private Parnerships, "A Public-Private Partnership (PPP) is a contractual agreement between a public agency (federal, state, or local) and a private sector entity. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, each party shares in the risks and rewards potential in the delivery of the service and/or facility."
A P3 is an alternative procurement strategy for the public sector; it is not the answer for every situation, but typically involves a solution to close funding and timing gaps to deliver or improve an asset that otherwise might be delayed or deferred indefinitely.
Balfour Beatty Construction offers solutions for success
P3 can provide a wide range of solutions that can be tailored to the specific financial, legal, and political constraints of the client and the project.
Balfour Beatty Construction Services can help provide solutions that shift risk from the public sector through alternative construction/delivery methods, lease purchase structures, or the deployment of private investment capital through our affiliated company, Balfour Beatty Capital Group.
We can help close a funding gap by identifying potential revenue streams and funding sources that can offset the cost of a project.
Through our P3 services, we can deliver projects years earlier, thereby avoiding construction cost and interest rate risks that can increase over time.
University of Central Florida Convocation Center, Orlando, FL (pictured above right)
The University was able to build a convocation center where state funding was not available for such projects
"The 1,415-acre campus offered room to grow, but the school lacked funds to build more housing and parking and to expand its 5,000-seat arena. Then officials came up with the idea to package the multiple needs into a multi-phased athletic compound that included the new arena, residential space, garages, and retail near the athletic fields.
"Revenue from the 2,000 residential units, parking and retailers supports the debt on the $107 million arena. Students pay $600 to $700 per month for their units and $450 annually for a reserved space in the parking garage. Retailers pay between $22 and $30 per sq ft, depending on when they joined the projects, and a certain percentage of sales."
-- Excerpted from "A Winning Complex, Contractors Complete Major Athletic Projects at UCF," Southeast Construction, November 2007
PPEA The Mason Inn Conference Center and Hotel, George Mason University, Fairfax, VA
George Mason University's focal point for hospitality, The Mason Inn Hotel and Conference Center provides lodging for university guests and host events, academic conferences, and other functions. Consisting of a 150-room hotel integrated with a technologically advanced conference area, the seven-story complex is LEED Gold Certified. George Mason University procured the work under the Public-Private Education Facilities and Infrastructure Act of 2002 (PPEA).
"My experience with Balfour Beatty has been outstanding. There are projects that as an owner you worry about and those you don't have to. The Balfour Beatty project was a 'worry-free' project for me. The Balfour Beatty team provided realistic, cost-effective solutions with the owner in mind. In my 28 years in the industry, this experience ranks among the best. When I think of leaders in the industry in the use of BIM and technology in projects, Balfour Beatty is the first company I think of." -- Charles Fanshaw, PE, Director of Engineering, National Defense University (formerly Director of Facilities Project Management & Design, George Mason University)
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Frisco Sports Complex, Frisco, TX
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Deja Blue Arena Expansion and Parking Garage Addition, Frisco, TX
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Dr Pepper StarCenters in Duncanville, Farmers Branch, Euless, and McKinney, TX
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Omni Dallas Convention Center Hotel, Dallas, TX
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Florida Atlantic University -- Student Housing and Football Stadium, Boca Raton, FL
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PPEA Medium Security Facility Mount Rogers Planning District, Independence, VA
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PPEA New River Valley Regional Jail Expansion and Renovations, Dublin, VA
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PPEA Rappahannock Regional Jail Addition, Stafford, VA
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PPEA VADOC Detention Facility -- Chatham Site, Chatham, VA
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PPEA VADOC Detention Facility -- Deerfield Site, Deerfield, VA
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PPEA VADOC Detention Facility -- Pocahontas Site, Pocahontas, VA