Government is getting out of the real estate business - and as it does, companies with innovative ideas are in high demand. Public officials throughout the country are in serious talks about exchanging non-revenue-producing assets for solutions that generate revenue.

Taxpayers interested in a return on their investments should be pleased that this type of collaboration is occurring. But, that is not always the case. People tend to resist change and existing government infrastructure all too often represents a deep connection to the surrounding community. When public buildings and/or real estate are sold or repurposed, it often results in a significant change to the area.

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Legislation signed that will lead to $1B in projects

Minnesota universities, public safety, transportation will benefit from funds

One day after the Minnesota Legislature adjourned, Gov. Mark Dayton (pictured) put his signature on legislation that will lead to the financing of more than $1 billion in capital improvement projects in the state. 

The funding will mean dozens of projects for universities, public safety, transportation, economic development and other areas. The funding will be in the form of $846 million in bonds and $200 million in cash.

Among the bonding projects are:

• $126.3 million for renovations at the State Capitol;
• $120.7 million for Minnesota state colleges and universities projects, including $42.5 million in system-wide asset preservation, $35.86 million for a science education center at Metropolitan State University and $25.82 million for a clinical sciences facility at Minnesota State University, Mankato;
• $56.3 million for remodeling work at the Minnesota State Security Hospital in St. Peter;
• $119.37 million for the University of Minnesota, including $56.7 million for a Tate Laboratory renovation on the Minneapolis campus and $42.5 million in system-wide asset preservation;
• $18.33 million for the wastewater infrastructure fund;
• $17.67 million for trail acquisition and development;
• $15 million for a capital improvement program to advance transit in the Twin Cities metropolitan area;
• $14 million for the development of Lake Vermillion State Park; and
• $5.35 million for renovation at the Chatfield Center for the Arts.

Some of the projects that will result from the cash bill legislation include:

• $61 million for convention center projects in Mankato, Rochester and St. Cloud;
• $30 million in local road improvement fund grants; and
• $7.5 million for flood hazard mitigation.

The complete list of projects from both pieces of legislation, funded by either general obligation bonds (GO) or cash is available here.

FY 2014-15 projects include parks, community centers, library upgrades

A fire station relocation due to increased growth in the eastern portion of the city is among the $80.4 million in capital improvement projects in the 2014-15 fiscal year for the city of Carlsbad, California. Other expenditures include funding for park projects and library upgrades. Community centers at Pine, Poinsettia or Aviara parks also are under consideration.

The Leo Carillo Ranch Park, renovations to both city libraries, a variety of street projects and water upgrades are also on the agenda for funding. Most of the projects are on the list for funding as a result of the city's growth management plan to ensure the city projects meet demand of an increasing number of residents.

The city's 15-year capital improvement program includes more than 250 new and continuing projects. The price tag on those items is approximately $496 million.

While the majority of the funding for the capital improvement projects comes from development fees, utility replacement funds, infrastructure replacement funds, special district fees and grants, some of the development fees are expected to decline in the coming years because of the economy, according to city budget officials. And, as the city gets closer to being built out, those development fees will continue to decline.

School district plans to spend $1.4 million on technology upgrades

Technology upgrades and additions totaling $1.4 million are part of the proposed budget for the Forest Grove School District in Oregon next year. A pilot program was begun this year at a middle school that allowed for the loan of iPads to each of the approximately 850 students in the school. The budget expenditure would include adding devices as well as increasing staff. Old computers would be replaced and laptops and notebooks would be added at the high school and some elementary schools. Brian Hawkins (pictured), director of technology for the district, said one full-time technology client support specialist and three part-time technology instructional assistants would be added. The majority of the computers to be replaced across the district would be at the elementary schools and the Forest Grove High School.

New schools, renovations to be paid for after $680 million bond passes

More than two-dozen projects will be paid for following passage of a $680 million bond issue by voters in the Beaverton School District in Oregon. The bond issue is the largest in state history. Among the projects that will be undertaken are a new high school, middle school and elementary school. Other schools throughout the district will see renovation projects, along with security and technology upgrades. The bond issue was extremely close, but now that it has passed, officials will get busy when the finance department begins the processes for selling the bonds and investing the funds. Groundbreaking for the first project is not expected for another year. The bond proceeds will be used to build three new schools. Three elementary schools will be rebuilt, as will the Arts and Communication Magnet Academy. Numerous other schools will undergo renovations. Security improvements are on tap at all schools and every school will also have funds allocated for repair. Both infrastructure and computer devices will be part of technology upgrades district-wide.

School construction projects totaling $30 million announced in West Virginia

The West Virginia School Building Authority recently sold $26 million in revenue bonds, the proceeds of which will be used to fund $30 million in school construction projects. Gov. Earl Ray Tomblin (pictured) said the bonds are the first sold by the state since legislation dedicated additional lottery revenue to support school projects. The School Building Authority on April 28 awarded funding, much of it from the sale of these bonds, to local schools. The funds will be combined with local money and will result in more than $89 million being invested in local schools and education systems. Schools across the state will reap the benefits of these investments. 

Minnesota school district issues RFP for $12 million school project

The school board of the St. Cloud, Minnesota, school district has issued a request for proposals (RFP) for architectural services for a project valued at $12 million that would build additional classrooms at three of its schools. The classroom additions would be at Clearview Elementary, North Junior High and Kennedy Community School. In addition, a kitchen at the Apollo High School would be remodeled. The project originally called for the addition of 10 classrooms at each of the schools. 

Iowa school preparing for bond sale for multi-billion-dollar school upgrades

After a successful bond issue in April, officials with the Sioux Central school in Iowa are preparing for upgrades to the school that will result in a multi-million-dollar project. Bids for the bonds will be received on June 16, according to Sioux Central Superintendent Scott Williamson (pictured). Once the bonds are sold, the first project will be addition of a new football field and track. The $7.5 million project is expected to begin in September.

Courthouse annex project on bond ballot for county in Iowa

Officials in Johnson County, Iowa, are hoping that the third time's the charm. In November, they will put a bond issue before voters for the third time. The $30.8 million bond referendum would build a new courthouse annex. Officials say a new facility is needed to address security, safety and space needs of the current courthouse, which is more than 100 years old. A supermajority of voters must approve the referendum to pass the bonds. Plans are for the annex to be on the south side of the current courthouse, and to include six new courtroom, technology upgrades, new meeting rooms and better security. "The issue of addressing safety, space and security for the courthouse, while this addresses that, we still have a pretty big void in the fact that we still have a jail issue," said Board of Supervisors Chair Terrence Neuzil (pictured). The county has budgeted $1.5 million for door and control room upgrades at the jail and future projects will also include a generator, updated plumbing and roofing needs. The proposed two-story annex would include two floors of courthouse space, clerk of court offices, judges' chambers, conference room and a basement for storage and mechanical equipment. 

Water bill will lead to expansion of Port Everglades in Florida

Congressional passage of a water projects bill will have a big impact on ports in Florida. Port Everglades,which already is creating five new berths and a turning notch to allow ships to maneuver in the harbor, would benefit from a dredging project. At a cost of $313 million, the project is expected to create about 2,200 jobs in construction and 1,500 permanent jobs, such as cargo handlers and freight managers. Additional jobs such as truckers and dock workers may also be created. Port Everglades plans to dredge down to 48 feet to accommodate a massive new line of mega-ships that are expected in the port following the widening project at the Panama Canal. That project is to be finished in early 2016. The congressional bill authorizes $54 million in federal funding to dredge the port's entrance at the Lake Worth Inlet from 33 to 39 feet. The port will put up $35 million of the total project cost, with additional funding to be provided by the state. The project still must be cleared for construction by the U.S. Army Corps of Engineers.

Governor proposes additional $17 million for school security upgrades

A package of school safety initiatives proposed by Ohio Gov. John Kasich would make $17 million in grant funds available for security upgrades at the state's schools. In addition to making grant funds available, the initiative also would have schools face penalties for failing to submit safety plans. Last summer, funding was made available for safety projects that included entryway security and communications. State Superintendent Richard Ross (pictured) said 3,000 schools participated in the program, sharing the $12 million in grant funds. "There's so much interest in that, we went through that very, very quickly," Ross said. The new initiative would make grant funds available through the Ohio Facilities Construction Commission for security upgrades at both public and private schools. The money would be divided, with $10 million going to public schools and $7 million to private schools. The state already has a provision requiring schools to submit safety plans, but the attorney general's office said of the 4,438 schools that are required to file the plans, 84 have plans that are non-compliant, 43 have outdated plans and 41 schools' plans are missing. Free safety plan consultation and training will be available thanks to a $1.9 million federal grant. The state will also offer technical assistance to the schools and a state hotline will be established for accepting tips on such issues as school shootings and bullying. 

Levees to get financial assistance in Sacramento's Natomas Basin

A $1 billion project that has been stalled for over a year recently got new life when Congress approved a water-projects-related bill that will bolster levees in Sacramento's Natomas Basin. The project would help protect some 100,000 people in the basin area as well as $7 billion in property. In 2006, the U.S. Army Corps of Engineers ruled that the 42 miles of levees circling the region were vulnerable to seepage and no longer met federal standards to withstand a 100-year flood. The solution was said to be a requirement for new construction to be elevated above the flood plain. That proved cost prohibitive, and resulted in no buildings being built, with property owners having to buy flood insurance if their property was backed by federally backed mortgages. Local residents eventually approved property tax increases to fund repair of the most critical levees. Those tax proceeds funded work on 18 miles of the levees and now that the Congress has passed the bill, the Corps of Engineers will reinforce the remaining 24 miles of the levees. 

Check out these recent awards: 

• Complete Parachute Solutions has landed a $21.7 million training contract from the U.S. Marine Corps through the U.S. Department of Defense to provide the Marines with training and technical support on free-fall and parachuting techniques.
• O'Connell Electric Co. Inc. has been awarded two contracts totaling $16 million for upgrades to the New York Power Authority's transmission system. The company will get $5.2 million for site preparation work for two new transformers at the St. Lawrence-Franklin D. Roosevelt Power Project substation in Massena, and $10.8 million to demolish transmission equipment at the Robert Moses Switchyard in Massena and install 16 power circuit breakers and a capacitor bank.
• Contegra Construction won a $7.961 million contract from the village of Roxana, Illinois, for a water treatment plant expansion project that will result in some equipment being replaced and other property undergoing renovations.
• CACI International Inc. was awarded a $21 million one-year contract with a one-year option to provide business, logistics and engineering services for the U.S. Army Product Director to enhance the tactical communications among Army units.
• Callanan Industries was awarded a $1.1 million contract by the Schenectady County, New York,  Metroplex Development Authority to install new curbs, sidewalks, streetscape improvements and pave lower State Street from Erie Boulevard to South Church Street in Schenectady.
• Safe Reflections, a technology company that provides reflective solutions to the occupational safety, consumer activewear apparel and military training markets, has been awarded two contracts totaling $3.5 million to provide reflective material for United States Air Force training apparel.
• Global Contracting & Painting has been awarded a $97,000 contract by the town of Seneca Falls, New York, for additional repair work on the Auburn Road water tower. The town had already hired Global Contracting & Painting to replace a deteriorated 8-inch intake line that fed water to the tower for storage and pressure purposes. The additional contract is for outlet pipe repair.
• Luke & Associates, Inc. was awarded a $20 million contract by the Department of Defense to provide medical services at the Fort Bliss Continental United States Replacement Center to medically assess personnel to ensure readiness for deployment and redeployment. 
• Civic Plus won a $78,000 contract from Hall County, Georgia, to redesign the county's Web site.
• Falls Construction won a $989,760 federal contract from the U.S. Air Force's Global Strike Command, Malmstrom Air Force Base, Montana, for the repair and replacement of high temperature hot water service lines.

County in Florida seeking P3 partner to facilitate park, community center

The Hillsborough County (Florida) commissioners recently approved seeking bids for a public-private partnership that will lead to a long-sought public park and community center. The commissioners are seeking a developer to use county-owned land to construct a commercial center. The developer would then in return build a dog park on the property that includes trails, a children's playground and picnic tables and shelters. Part of the 81-acre property also would be set aside for possible construction of a new cultural center and parking area in the future.

According to Tom Fass (pictured), assistant county administrator, the land is not zoned for commercial use and the rezoning process would take about four months. Originally, part of the land was set aside for a theater for the New Tampa Players and for a hockey arena. But, neither was built.

The deadline for using the land for those purposes has ended and discussion then focused on a new use. The consensus was that the public favored allowing the commercial development of the property in exchange for the park. Responses from developers will be due 30 days after the bids go out. 

Public-private partnership leads to addition of cabins in New York State park

More than two-dozen upscale cabins are being added to the Allegany State Park in New York State as a result of a public-private partnership. The first 14 of the 28 cabins are being built to include an indoor bathroom with a shower, a kitchen with running water and two bedrooms. The additional 14 cabins will be built on the other side of the park when the first 14 are completed.

The P3 project is the result of a partnership between the state Office of Parks, Recreation and Historic Preservation and a private Westchester County lodging and management company. The management company hired private staff to maintain the cabins. The $2.1 million project brought the cabins up to upscale classification. The project also was awarded a $420,000 grant from the Empire State Development Board. Park officials are confident they will have no problems renting the cabins.

Corvallis looks to public-private partnership for parking garage with hotel

A public-private partnership could lead to a 155-space, city-owned parking garage as part of a project that includes a riverfront hotel project for the city of Corvallis, Oregon. The city is looking into investing $4.2 million into a P3. Officials will meet again on June 2 to discuss the proposal.

Under the proposal, the city and a group of local real estate investors would team up. The investors are seeking to build a Hyatt Place hotel on Southwest First Street between Adams and Washington avenues. The latest version of the proposed hotel is a seven-story structure with 121 rooms and a 155-space garage. The original plan was a five-story facility with 130 guest rooms and a 109-space garage. In the seven-story scenario, the parking spaces would be on the ground floor and all of the second, third and fourth floors, with guest rooms on the fifth, six and seventh stories.

While the hotel would reserve a certain number of spaces for hotel guests, about 63 spaces would be open to the public at night and paid for, earning revenue. There could be up to 100 spaces during the day. According to Tom Nelson (pictured), head of the Corvallis-Benton County Economic Development Office, revenues from the sale of bonds for the project should cover the annual debt service on the bonds, estimated at about $325,000 a year, depending on borrowing costs. The garage would be managed by the hotel, which would take the revenue, but make lease payments of $70,000 per year to the city. The city would also benefit from room tax and property tax collections. 

Sacramento City Council approves financing for Kings NBA franchise

Construction on a $477 million downtown arena for the NBA Sacramento Kings is finally going to happen, after the Sacrament City Council approved a financing plan. The city approved a 35-year deal in which the city would subsidize the deal with $223 million, the largest part of it financed through a parking revenue bond. A $21.9-million-per-year payment by the city toward the debt service would be paid through lease payments from the Kings and a planned increase in parking revenue.

Land worth $32 million is also being transferred from the city to the team and the team will be allowed to operate six digital billboard. The Kings, in return, will put up $254 million for construction of the arena and the development of surrounding land to include a hotel, office tower and retail. The project is expected to begin construction this summer, with the facility to be completed in time for the 2016-17 season. 

Are you a government official who has moved into a new position or to a new agency? Did you recently retire? Were you recently named to an executive-level position at a state-supported college, university or community college? Have you secured a new job as superintendent of a public school? If so, we'd like to hear from you - and so would your friends and colleagues - for our "Where Are They Now" column. Just drop us a line at editor@spartnerships.com and let us know about your previous job and where you are now. This week we feature Julian Castro.

San Antonio Mayor Julian Castro (pictured) has been nominated by President Barack Obama to serve as Secretary of the U.S. Department of Housing and Urban Development, subject to confirmation by the U.S. Senate. The youngest mayor of a Top 50 Texas city, Castro earned his bachelor's degree in political science and communications from Stanford University in 1996 and a juris doctorate from Harvard Law School in 2000. He dabbled in politics in college when he and twin brother Joaquin ran successful campaigns for seats on the Stanford Student Senate. After law school, the two brothers worked for the law firm Akin Gump Strauss Hauer & Feld before starting their own firm in 2005. In 2001, at the age of 26, Castro became the youngest elected city councilman in San Antonio history. He ran unsuccessfully for mayor of San Antonio in 2005. In 2009, he ran again and was elected to his first term. He was re-elected to his third term in 2013. His brother Joaquin currently serves as a member of the U.S. House of Representatives. 

Constance Jones (top left), currently the executive director of school development for the Lee County School District in Fort Myers, Florida, has been named superintendent of the Pueblo, Colorado, City's School, to replace Maggie Lopez, who has led the school district for four years and is retiring after a 37-year career in education. Anthony Jackson (top center), California's state parks director for the last 19 months, has announced his retirement, effective June 30, after a 40-year public service career. Glenn "Max" McGee (top right), who served as president of the Illinois School of Mathematics and Science in Aurora, Illinois, has been selected for the Palo Alto Unified School District superintendent position. Outgoing Burlington (Vermont) School Superintendent Jeanne Collins is lone finalist for new school superintendent for the Rutland Northeast Supervisory Union in Brandon, to replace Superintendent John A. Castle, who is stepping down after five years to take over as superintendent at the North Country Union School District in Newport. Patrick Tanner, who is the former chief technology officer for the Carroll Independent School District and the former senior network engineer for the Garland Independent School District, both in Texas, has been named the Allen Independent School District executive director of technology. Paul W. Ferguson, president of the University of Maine since 2011, has been named the 15th president of Ball State University, replacing President Jo Ann Gora. Kathleen O'Toole (bottom right), a one-time Boston police commissioner and former inspector general for Ireland's national police force, was recently nominated as Seattle's first female police chief, to replace former Seattle chief John Diaz, who announced his retirement in April 2013 after a three-year tenure. San Francisco Deputy Innovation Officer Shannon Spanhake (bottom center) has announced her resignation to move to San Francisco tech startup company Planet Labs, a satellite network providing earth imaging services. Priscilla Pipho (bottom left), has been named by the Texas Department of Information Resources to fill the role of the newly created position of Chief Customer Officer, and will focus on growing and strengthening the customer-centric culture. New Albany, New York,  Police Sgt. Todd Bailey, a 17-year veteran of the department, will serve as Chief of Police after former Chief Sherri Knight stepped down earlier this week.The Espanola, New Mexico, City Council has approved the appointment of Timothy Dodge as the city's new manager, replacing interim city manager Joe Duran, who has been in the position for the last two years. Yuma, Arizona, Fire Department Interim Fire Chief Dennis Light, who has been in charge of the agency since former Fire Chief Jack McArthur retired May 8, has been appointed as the new fire chief of the city of Prescott Fire Department.