USDA Rural Development will help fund public use facilities in rural areas

More than $230 million worth of construction is about to begin across the country after the U.S. Department of Agriculture Rural Development approved funding for essential community facilities for public use in rural areas. The $234 million in funding being released will be in the form of loans and grants for 135 projects in 40 states, Puerto Rico and the Western Pacific. Eligible projects include facilities for public use such as fire protection, safety, health care, education and other needs.

Agriculture Secretary Tom Vilsack (pictured) said the USDA Rural Development's Community Facilities Program will work with rural communities "to help them develop quality health care services, modern library facilities and school buildings, and reliable first responder equipment and services to ensure that people who live in rural areas have access to critical infrastructure."  

In Arkansas, four community fire departments will receive grants of from $50,000 to $75,000 each to purchase new pumper trucks. In Colorado, the Rio Grande County Library District was awarded a grant of $25,000 to install solar panels in two libraries. 

In New Mexico, the EMW Gas Association will benefit from a $5 million loan to expand natural gas distribution to residents of Torrance County. EMW plans to build 29 miles of steel, high-pressured gas pipeline. The construction will provide service to rural customers who currently lack natural gas.

In Delaware, the M.O.T. Charter School will get a direct loan of $2.775 million to expand by 19,000 square feet and build a library and classrooms, a lobby, multi-purpose area, booster room and bathrooms.

The Mahaska County (Iowa) Hospital will get a $23.015 million direct loan to expand its facilities. Another rural medical facility - the Charles Cole Memorial Hospital in Pennsylvania - has been selected for a $2.5 million loan to expand and renovate the emergency department and improve the heating, ventilation and cooling system. The renovations will add private emergency rooms, update the facility and provide consistent heating and air conditioning.

A variety of other projects will be funded. The town of Hardwick, Massachusetts, will get a direct loan of $618,800 to make energy efficiency improvements to town buildings, the city of Bessemer, Michigan, will get a loan of $14,000 to replace the roof on a fire hall, Emory and Henry College in Virginia will get a loan of $2.419 million to renovate the Stuart residence hall and the Searchlight Center, Inc. in Oklahoma will get both a $1.878 million direct loan and a more than $750,000 guaranteed loan to construct an assisted living facility.

To view the complete list of projects funded, click here and look under "Recent Reports."

More than 250 projects address safety, mobility, capacity expansion

A nearly $900 million transportation construction program for Minnesota was recently announced, with the projects aimed at improving safety and mobility and expanding capacity while preserving infrastructure. More than 250 state highway projects are part of the program. The Minnesota Department of Transportation (Mn/DOT) is focused on "improving our roads and bridges and maximizing the capacity of our multimodal transportation system to give the traveling public more options," said Tom Sorel (pictured), Mn/DOT commissioner.  

Among the projects, the second year of the bridge and pavement replacement on a section of Interstate 35 in Duluth is funded. Other projects will lead to improved safety at railroad crossings, repair of seawalls and docks, improvements on runways and terminals at regional airports and remodeling of a transit facility. 

In the Twin Cities metro area, resurfacing of I-94 between St. Paul and Minneapolis will continue. A four-lane expansion, including bridges, on Highway 14 near Waseca is a project planned for the Greater Minnesota area. To view a complete list of projects, including construction dates and traffic impacts, click here and look under "Recent Reports."

Public-private partnerships...

Tight budgets lead many government entities to seek P3s

University of Iowa talking about P3 to reconstruct campus apartment complexes

Public-private partnerships (P3s) are popping up everywhere as government entities are being forced to find innovative ways to raise funds for necessary projects. The University of Iowa is no exception. Housing officials at the university are looking at a public-private partnership to reconstruct two apartment complexes.

The public-private partnership is not the only option for the two complexes, but officials see it as the most cost-effective one. Their other options are to construct the building with their own funds or not replace the apartments at all. The Board of Regents will explore all options at their April 28 meeting. 

The 76 apartment units, which are mostly favored by graduate students, were damaged in the 2008 floods. UI Housing Director Von Stange (pictured) said the university needs a commitment to graduate international students and families. "If we didn't, that would mean those students would have to fend for themselves in the city." 

While the two apartment complexes have previously been approved for demolition, Stange said bringing in a private partner could cut costs and the time it takes to rebuild the facilities. The university is studying a proposal that would have the land owned by the university and the university would contract with private sector companies to build and manage the apartments. Stange said housing officials will tell regents where they are in the process at their meeting later this month and how the process can be completed. 

Proposed California bill would give private sector chance to operate parks

The California State Legislature is exploring legislation that would allow the state to engage private sector partners to keep open state parks threatened by state budget cuts. A recent study by California State University showed annual spending at state parks in California at more than $6.9 billion per year, which has a significant impact on neighboring communities. A bill has been filed that would require the state to post a notice if it planned to close a park, list contact information for outside parties that might have an interest in taking over its operations and respond in writing to inquiries the state received. The goal of the legislation, according to its author - is to keep state parks open. State parks suffered approximately $14 million in budget cuts in 2009. That would have resulted in some 100 of the state's 279 parks, beaches and other attractions to shut down. A budget move prevented that from happening, but 60 parks were partially closed and another 90 suffered service reductions. The state budget deficit continues and Gov. Jerry Brown's proposed budget calls for $11 million in funding reductions for the state park system for FY 2011-12. The bill is scheduled for a Senate committee hearing this week.  

Legislation could bring bridge project back to life with public-private partnership

A bill has been drafted in the Michigan Legislature that would breathe new life into a $3.8 billion bridge project that has been stalled. The bridge spans a trade route between Detroit and Canada. The bill would create a new bonding authority that could enter into public-private partnerships for up to 50 years to build and oversee the New International Trade Crossing project. Michigan Gov. Rick Snyder (pictured) said the legislation would allow for issuance of 50-year, tax-exempt bonds for the project. Included would be the bridge, highway interchanges and a new customs plaza. Funding for the project would b backed by projected revenue from the project. Costs are estimated at $3.8 billion and would require a financing project that would include the state of Michigan, the city of Windsor in Canada and the United States and Canadian governments. About $1 billion of that total would be for the bridge, which would be financed, constructed and operated by a private sector firm. The costs would be paid through tolls, which are estimated to be $60 million for 2016 and $117 million by 2040. The main obstacle is that the state of Michigan does not have a law allowing the government to enter into a public-private partnership for transportation projects. This bill would give the state that authority.

Florida tourism industry trying to protect public-private partnership

Tourism industry leaders are lobbying for Visit Florida, the state's public-private partnership that for the last 15 years has successfully brought tourists to the state, to remain a partnership. They are coming up against Gov. Rick Scott's proposed government reorganization that would lump the entity under one large economic development umbrella agency. The leadership of the entity would be taken out of the hands of industry experts and instead be delegated to 11 political appointees. The new department they would oversee would include the governor's Office of Tourism, Trade and Economic Development, the Agency for Workforce Innovation and the Department of Community Affairs. Other public-private partnerships such as Space Florida, Enterprise Florida and Black Business Investment Board would also become part of the mega-agency. Industry executives hail Visit Florida for its success, pointing to the fact that it has become a model for other tourism marketing entities. Scott, on the other hand, favors consolidation that will results in the need for less funding and fewer employees.

Community center could be financed with public-private partnership

A Florida community center that has been scaled back from its original proposed size and cost could be financed through a public-private partnership. Cost of the new community center proposed for Marco Island, Florida, has been cut by $2 million. The new plans call for a 25,000-square-foot building that costs $4 million. Officials are hoping for a private sector building and development company to help finance the project. Marco Island Parks and Recreation Director Bryan Milk (pictured) said the proposed Mackle Park recreation center's original plans were for replacing the current 8,000-square-foot facility with a nearly 40,000-square-foot, two-story building. The city is seeking a private sector firm to provide the $6 million needed for the project. The funds would be repaid over 12 years and not require a tax increase. At the end of the 12 years, the city would own the building.

SPI, with 15+ years of experience in partnering public and private sector partners, has become the premier P3 partner connection in the United States. 

SPI is currently working throughout the country on P3 initiatives and is available for conversations with any public entity interested in asking questions, discussing national trends or obtaining advice about how to reach out to private sector firms.

Interested parties click here or call Reagan Weil at 512-531-3900 to schedule a conversation.

Mohammad Qayoumi (top left), president of California State University East Bay since 2006 and former vice president for administration and chief financial officer at Cal State Northridge, has been chosen as the next president of San Jose State University. Michael Gerber (top center), executive director of the Texas Department of Housing and Community Affairs, has announced he will be leaving the agency in July after having served as executive director of the agency since May 2006. The village of Loving, New Mexico, is losing Police Chief Mike Bird (top right), who has served in that capacity since 2009, is leaving to begin working as a sheriff's deputy in the Eddy County Sheriff's Department's Artesia office. Samantha Mary Julian, who has led resource management for the Utah Governor's Office of Economic Development, has been named to lead the new Office of Energy Development within the Utah Department of Environmental Quality. Dr. Shalee Cunningham, former superintendent of the Steamboat Springs School District, has been named superintendent of the Novato (California) Unified School District, replacing retiring superintendent Jan La Torre-Derby. City of Las Cruces Facilities Director Brian Denmark has been named assistant city manager, after having served as interim assistant city manager since January. Dr. Debra Friedman (middle right), dean of Arizona State Univerity's College of Public Programs, professor of public affairs and university vice president responsible for the university's Downtown Phoenix campus, has been named new chancellor of the University of Washington Tacoma. Jean-Claude Brizard (middle center), a 20-year veteran teacher and administrator in New York City and who spent three years as Rochester, New York, schools superintendent, has been chosen by Mayor-elect Rahm Emanuel as the new Chicago Public Schools CEO. Emanuel also recently named IBM Corp. Director of Citizenship and Technology John Tolva (middle left) as Chicago's new chief technology officer. Other members of Emanuel's team announced were Deputy Mayor Mark Angelson, CFO Lois Scott, Budget Director Alex Holt and Comptroller Amer Ahmad. Webb City (Missouri) Superintendent Tony Rossetti recently announced new assignments that include Trey Moeller as new assistant superintendent of curriculum and instruction and Kevin Cooper as assistant superintendent of business operations. Police Capt. Keith Davis, a recent graduate of the FBI National Academy who also runs the criminal investigation division of the D'lberville Police Department, has been named the city's police chief. Mark Huey (bottom left), Tampa's economic development administrator since 2003, will become president and chief executive of the Economic Development Corp. of Sarasota County, effective in June. Dr. James E. Payne (bottom center), interim dean of the College of Arts and Sciences and chair of the Department of Economics at Illinois State University, will be the new regional vice chancellor for academic affairs at the University of South Florida Polytechnic. Diana Abbati (bottom right), superintendent/principal of the Woodside Elementary School District, has been chosen as the Los Gatos Union (California) School District, replacing interim Superintendent Cyndy Simms. Folsom City (California) has announced the appointment of Cynthia Renaud, current commander with the City of Long Beach Police Department and 19-year veteran with the department, as Folsom City's next police chief. The Redding (California) School District has named as its new superintendent Dr. Rick Fauss, who comes to the district from Newman-Crows Landing Unified School District and replaces Diane Kempley, who is retiring after 40 years with the district, the last five as superintendent. Robert Gowans, deputy chief of the Montpelier (Vermont) Fire Department, will take over as fire chief effective May 1.