1. North Carolina League of Municipalities Public/Private Partnerships October 24, 2011

2. Public/Private Partnerships  What is a Public/Private Partnership?  Why Use One?  How Do They Happen?  This Session will Provide Answers

3. How Public/Private Partnerships Work:  Committed Leadership  Public Support  The Right Deal  Financing Well Within Capacity  True Partners

4. Funding and Financing Public/Private Partnerships  General Obligation Bonds  Tax Increment Financing (TIF’s)  Synthetic TIF’s  Installment Purchase Contracts & Construction Leasebacks

5. Funding and Financing Public/Private Partnerships  Grant Funding  Private Incentives

6. Case Study #1 Levine Center for the Arts Charlotte, NC

8. The Duke Energy Center Duke Energy Center

10. John S. and James L. Knight Theater

11. John S. and James L. Knight Theater The Bechtler Museum of Modern Art

13. + “Firebird”

14. The Mint Museum Uptown

16. The Harvey B. Gantt Center for African-American Arts+Culture

18. Major Partners in the Process Primary Wachovia / Wells Fargo City of Charlotte Mecklenburg County Arts and Science Council Arts and Cultural Affiliates State of North Carolina Chamber of Commerce Tourism Groups Others Mecklenburg Towns Bank of America Duke Energy Private Contributors Attorneys Architects Contractors

21. Critical Agreement Terms Purchase Price Property Tax Guarantee Construction Period Financing Permanent Public Financing Acquisition Terms/Schedule Termination Rights Design Approval Minority/Women’s Business Goals Go Dark and Relocation Events Bechtler Art Agreement Privately Funded Operating Endowment

22. Major Observations Negotiate fairly, openly, respectfully, honestly Negotiate recognizing that many issues are not mutually exclusive Negotiate knowing there will be another day and another project Negotiate realizing that the final product must withstand all scrutiny Reduce the complex and complicated to its simplest terms It is a marathon, not a sprint Charlotte/Mecklenburg is built on a strong public/private foundation

23. Case Study #2 Embassy Suites Hotel and Convention Center Fayetteville, NC (Spring 2012)

24. Case Study #2 Embassy Suites Hotel and Convention Center Fayetteville, NC  Innovate: State-of-art amenities at minimal costs  Resolve: City negotiated patiently, knowledgeably.  Adapt: City leveraged assets under its control.

25. Comparing Projects Cultural CampusCritical FeatureHotel & Convention Center Multiple Funding Sources PublicDebt ServicePrivate 7:1Private/Public Investment Ratio28:1 PositiveChange to Property Tax BasePositive Public Plazas-Ticketed VenuesAccessGuests and Invitees Cultural, Tourism and Economic Development Primary Purpose Tourism and Economic Development Leisure & BusinessPrimary UsersBusiness & Leisure Future Expansion Space

26. The Future of Public/Private Partnerships  Greater public scrutiny  Standardized economic impact studies  Greater sophistication  More economic development projects

27. Your Questions and Comments