P3s: Public-Private Partnerships

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Presentation transcript:

P3s: Public-Private Partnerships 36 Commuting Solutions P3s: Public-Private Partnerships Jessica Yates Snell & Wilmer, L.L.P. May 8, 2012

About Snell & Wilmer L.L.P. A full-service law firm with offices in Colorado, Arizona, California, Nevada and Utah Active in planning, structuring and representing P3s throughout our footprint, nationally and around the globe ©2012 Snell & Wilmer L.L.P.

Snell & Wilmer L.L.P. and P3s We represent concessionaries, project team members (including contractors, investors, lenders, etc.) and public entities in implementing P3 projects We help our clients manage the risks and responsibilities that come with being involved in P3s ©2012 Snell & Wilmer L.L.P.

Many different models and applications What is a P3? Partnership (contract) between public and private sectors to deliver a service or facility for public use Each party shares in risks and rewards, specifically negotiated to the issues of the specific project and role Many different models and applications ©2012 Snell & Wilmer L.L.P.

P3 Models: Transportation Most popular P3 model in U.S. Agreement between public entity and “concessionaire” or consortium of private entities to design, build, finance, operate & maintain project Private partner collects user fees/tolls from the public Example: Eagle P3 Project ©2012 Snell & Wilmer L.L.P.

P3 Models: Other Applications Courthouses Water Infrastructure Parking Garages Schools Hospitals Detention Facilities Other public facilities or public purpose projects ©2012 Snell & Wilmer L.L.P.

P3 Models: Public Facilities Example Long Beach, CA, 545,000 Sq Ft Courthouse Private partner put in place a project-financing package with a total investment of $500m Private partner will design, construct, operate and maintain courthouse Private partner will be paid an annual performance-based fee After 35-year of operations, the private partner will hand the facility back to the public ©2012 Snell & Wilmer L.L.P.

P3 Models: Urban Renewal (TIF/PIF) Public incentives for private developer to redevelop “blighted properties” Tax Increment Financing (TIF): capture future gains in taxes in district to subsidize improvements Public Improvement Fee (PIF): fee added to sales tax to pay for public improvements in district (examples: Belmar, Colorado Mills) ©2012 Snell & Wilmer L.L.P.

Statutory authorities Political champions Organized structure Keys to Successful P3s Statutory authorities Political champions Organized structure Detailed business plan Guaranteed revenue stream Stakeholder support Choose partner carefully ©2012 Snell & Wilmer L.L.P.

Please Feel Free To Contact Me With Any Questions Conclusion Please Feel Free To Contact Me With Any Questions Jessica Yates jyates@swlaw.com (303) 634-2097