Volume 9, Issue 9 - March 1, 2017
Public-private partnerships - happening even in small cities, rural areas of the country
Mary Scott Nabers, President/CEO, Strategic Partnerships, Inc.
There's lots of news about major cities launching public-private partnerships (P3s) to rebuild, upgrade and improve urban assets. The P3s have become attractive because of a lack of public funding and an abundance of private-sector capital just waiting to be tapped.

But, there's not much news about P3s in smaller cities or in rural areas. That is about to change. As public officials in less populated parts of the country lament that the projects they need to launch are not large enough to capture the attention of investors or experienced contracting partners, some of their counterparts are forging ahead. 

Many creative and innovative city leaders have found ways to get around all obstacles. P3s are now being launched for all types of projects in smaller cities and taxpayers will benefit as public assets are salvaged and/or improved. 

Redevelopment projects are becoming common and most involve a private-sector partner. Smaller communities are revitalizing downtown areas, developing commercial ventures on non-revenue-producing property, building libraries, parks and repairing roadways through P3s. Such efforts always lead to increased property values and increased revenues for the city, and many of the P3 projects involve adding new revenue streams to city coffers.
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Has this happened to you while driving? The radio in your vehicle is playing a song on a local radio station's frequency and then suddenly the song starts fading in and out in the car speakers until it either goes to dead air or picks up another radio station. You have traveled beyond the bandwidth of that frequency and have now found yourself singing the rest of the song a cappella style. Well, the same thing applies to the internet and Wireless Fidelity or Wi-Fi. 

Your device can pick up a Wi-Fi signal that connects it to the internet, thru the air just like a high-frequency radio signal. Wi-Fi, like the frequency of a radio station, is regulated. Electronic components that make up a wireless network are based on one of the 802.11 standards that were set by the Institute of Electrical and Electronics Engineers and the Wi-Fi Alliance. The Wi-Fi Alliance trademarked the name Wi-Fi and promoted the technology. The technology is also referred to as WLAN, short for wireless local area network. The type of 802.11 standards used indoors will deliver transmission ranges anywhere from 115 to 230 feet.

It is up to you to foot the bill for wireless technology in your home, but most indoor establishments pay to offer some type of free Wi-Fi for your convenience. But what happens when you go outside? Free Wi-Fi kiosks by CIVIQ Smartscapes have started popping up in cities like New York,  Miami, Portland, Ore., Chicago and San Antonio. The kiosk includes a dual 55-inch outdoor display, dual touch screen, Wi-Fi and USB quick charge capabilities. These kiosks are scattered throughout the city and provide a Wi-Fi range from 150 to 250 feet. The kiosks can also be customized to provide information about upcoming events, geographic points of interest and other local information

Upcoming contracting opportunities

Alabama- The Alabama Department of Transportation (ALDOT) recently announced that bids for the replacement of the Interstate 20/59 bridge through downtown Birmingham must be submitted by March 31, with the contractor being selected by April 7. The contractor could begin work as early as May 5, and the actual replacement of the bridges is projected to begin in the late summer or fall of 2018. The bridge is expected to be closed between 15 and 16 months. 

Originally designed forty years ago to accommodate only 80,000 vehicles per day, traffic has nearly doubled and that means the bridge must be replaced for safety concerns. The total cost of the replacement bridge is $750 million.
New York/ New Jersey- Commissioners of the Port Authority of New York and New Jersey recently approved a $32.2 billion capital plan, which allocates $3.5 billion for a new Port Authority Bus Terminal. The new terminal is set to be completed by 2033. Commissioners also approved the immediate release of $70 million for the planning and permitting process for the project. 

Approval of the capital plan will allow for the repair and renovation of some of the region's major bridges, tunnels, airports and seaports. The plan also allocates $1.4 billion in funds for the renovation of George Washington Bridge, $2.5 billion for the redevelopment of LaGuardia Airport's Terminal B and $2.3 billion for the redevelopment of Newark Liberty-International Airport's Terminal A. 

Commissioners also approved $2.7 billion to fund early phases of the Gateway Program, a partnership between state and federal agencies that will include digging a new rail tunnel under the Hudson River and doubling rail capacity between the cities of Newark and New York. The agency estimates the cost of a new tunnel between $7.5 billion and $10 billion. The funds to complete the project will be made available in the agency's next capital plan.
New York- There have been many plans to completely revitalize the city of Utica both architecturally and economically. Since electing Mayor Robert Palmieri in 2011, there have been several construction projects conducted in the city with more to come. 

These projects range from the construction of a $585 million high-tech hospital at the Marcy Nanocenter site to a $12.6 million safety-improvement reconstruction on New York State Route 5S. A roundabout is planned for the 5S intersection that should make drivers slow down and reduce reckless maneuvers on the road. All plans need to be laid out before going up for bid in November. Construction for the Route 5S project will begin in April 2018, with the project being completed in the fall of 2019.
United States/Mexico- U.S. Customs and Border Protection recently announced its plans to begin awarding contracts for President Donald Trump's proposed 2,000-mile border wall with Mexico. The agency will officially request bids starting March 6, with concept papers due for submission by March 10. Finalists must submit their final offers by March 24, and the bids will be awarded in mid-April. Details are unknown on the start date and length of time to build the wall. Congressional funding for the project has also not been announced, as the wall will cost somewhere between $12 billion and $15 billion. 

However, if the wall were to extend along the entire U.S.-Mexico border, the cost would increase to an estimated $21 billion. As of now, there are 354 miles of pedestrian fencing and 300 miles of vehicle barriers along the border. A report released by Homeland Security proposes a preliminary phase to extend 26 miles of fences, followed by a second phase to add 151 miles of fences with an additional 272 replacement miles where fences are already installed. Those two phases alone would cost an estimated $5 billion. The final price tag for the job will depend mostly on the height, materials and other details that have not yet been released.
Ohio- There is a 5.7-acre mixed-use development opportunity that has recently become available in downtown Lakewood. The city is looking for a development team to rehabilitate the site, which used to be the site of Lakewood Hospital, into a vibrant urban neighborhood. The city of Lakewood has sent out a request for qualifications that will be due on March 17. 

This 5.7-acre site is accessible via three well-traveled public streets, and is right along Detroit Avenue, which is Lakewood's primary commercial corridor. This location is also highly profitable with single-family residences lining the site's southern border and commercial buildings lining the east and west. The community has stated that interested parties must focus on high-quality design and architecture. The selected development team and the city will enter into a mutually beneficial partnership to create this center for city life, which will include an outdoor community gathering space and other features to enhance the neighborhood's vibrancy.
Arkansas- Arkansas quorum courts in Crawford and Sebastian counties recently voted in support for the development of an intermodal port in Crawford County. Both quorum courts voted to allocate $40,000 each, along with other cities that form the Western Arkansas Intermodal Authority, towards a $200,000 fee to hire a company to produce a request for expression of interest and pass it through the port development industry. This request will be used to encourage companies to invest in the development of a rail, truck and water port on the Arkansas River east of Van Buren. 

This proposed port will encompass up to 6,000 acres, create a slack-water harbor, and allow for an intermodal port for a rail yard, distribution centers and warehouses on the inland side of the levee. The search for interested parties to invest in this project is projected to take nine months.
California- The city council of Santa Monica has cut ties with its current financial institution and has begun to work on a request for proposals for banking services from a new institution and is expected to issue it next month.

Changing banks for general services is a complex process that would take more than a year to complete. There will need to be a movement of funds, as well as changes to electronic payments to vendors, payroll direct deposits to staff and purchasing card activities. There will also be changes related to deposits being made by cash, checks, credit cards and electronic payments from state, county and federal agencies. The city is contracted with the current bank through March 2018.
Pennsylvania- Borough of State College and the Borough City Council have released a request for qualifications (RFQ) redevelopment opportunity between Allen Street and D Alley- known as the Allen Street Civic District or State College Town Centre.  

With the RFQ due on March 27, the Borough leaders, along with the planning commission and redevelopment authority, will select qualified development teams prior to sending out a request for proposals in spring or summer 2017. While the Borough officials will provide support for the selected project, they will not make a financial commitment other than the transmission of the parcels under a long-term ground lease.
Massachusetts- The Economic Development and Industrial Corporation of Boston and the Boston Planning and Development Agency have recently issued a request for qualifications (RFQ) for engineering design services. These services include a range of activities that will help with the parking garage addition east-phase 4 project, from the development of plans to construction administration work. 

This project will add approximately 550 parking spaces to a pre-existing 5-level concrete parking garage located at 12 Drydock Ave., in the Raymond L. Flynn Marine Park. The project fees are located on the RFQ's schedule and will be negotiated with the selected finalist. Massachusetts-registered architects and engineers with strong backgrounds in parking garage design are highly encouraged to apply. The RFQ is due by March 9.
Iowa- The Cedar Rapids Airport Commission, which is the operator of The Eastern Iowa Airport, will be accepting statements of qualifications from firms that have displayed interest in providing professional engineering and architectural services for potential projects that will deal with the expansion and improvements of runways, taxiways, aprons, and airport and tenant facilities at The Eastern Iowa Airport. These statements of qualifications are due on April 6.
News about public-private partnerships (P3s)

South Carolina- The city of Columbia has expressed its hopes to combine offices, private businesses and residences into a mixed-use development project. Leaders of the city want to construct a new city hall complex that could also include residential and retail spaces, along with a public transportation hub. With the project having skyscraper-level possibilities, the city has asked for developers to submit their ideas in the hopes of creating a public-private development partnership. In order to accommodate the additional 300,000 square feet in office space that the city needs for projected future growth, the building could become a 15-story or taller endeavor. 

The project is estimated to cost around $120 million and the city has remained steadfast in its need to partner with a private entity. City offices are currently spread among seven downtown buildings, and consolidating these spaces will help to prepare enough space for inevitable growth and efficiency. Furthermore, this mixed-use development endeavor will hopefully push revitalization and more energy farther up Main Street. The city hopes that its public investment will be used to stimulate private-sector capital to the northern segment of Main Street.
Illinois- Northern Illinois University (NIU), the DeKalb Firefighter's Historical Foundation and Proudly DeKalb worked with the city of DeKalb to come up with a plan to construct a nearly 35,000-square-foot structure that would serve as a science, technology, engineering, arts and math (STEAM) learning center. It is estimated that the city would need to invest $4 million. The operating budget of the center is projected to be between $200,000 and $500,000 for the first three years, up to $1.2 million for years three to five and more than $2.5 million going into the 10th year. The project team has selected two sites for the possible location of the building and has also provided three financing methods for each location: a nonprofit development, a public-private partnership development and a city development. 

The first proposed site is the NIU-owned Monat Building at 148 N. Third St. and would cost about $12.8 million. A nonprofit plan for this site would mean $4 million in tax increment financing (TIF) funding would be needed for construction and $8.8 million from a capital fundraising campaign. A city development plan would have similar funding requirements but the project would be under city ownership. A public-private partnership would require $4 million in TIF funds and the private developer would need to provide $3 million in equity and obtain a $5.8 million loan for the remaining costs. 

The second proposed site is the privately-owned Mooney property on 204 N. Fourth St. and is about twice the size of the first site. Building at this location would cost about $11.3 million. There would be an additional story in the building not needed by the STEAM center and would allow another business to operate at the location. The potential funds gathered from the additional story can be used by the private developer for STEAM center construction costs. Construction is expected to being in March 2018 and finish no later than February 2019.
South Dakota- The city of Sioux Falls has released a request for qualifications (RFQ) to seek qualified firms for the redevelopment of the former BNSF Railway property downtown. The qualified firms from the RFQ process will compete in a request for the proposals process. Responses to the RFQ must be received by the city by March 9. 

The rail yard is currently owned by the city and is leased to the BNSF Railway Company. The city will take full possession of the property in fall 2017 once the construction of the new sliding tracks is completed by BNSF. The city hopes to announce the selected developer(s) by summer 2017 and the first phase of the redevelopment is planned for spring 2018. Developers can submit proposals with qualifications for the entire 10.25 acres, segmented into five parcels or any smaller piece of the property. The vision of the city planners is that the rail yard will be transformed into a mixed-use hub of downtown that will attract $150 million or more in private construction.
Wisconsin/Minnesota- A Wisconsin county board recently passed a resolution in support of a privately-financed passenger rail corridor from Eau Claire to St. Paul's Union Depot, with a stop in Stillwater. A study conducted by the Minnesota Department of Transportation has designated this Eau Claire rail corridor as a top priority, phase I project that could likely receive a reimbursement on project costs through ticket sales. 

Minnesota planners recently received conditional approval from Union Pacific for the use of the track and the refurbished Union Depot in downtown St. Paul. This represents an important development for Wisconsin, as state officials project that this should solve some of the problems of graduates from Wisconsin schools relocating to Minnesota for jobs This improvement in transportation should allow Wisconsin and Minnesota residents alike to transit to Wisconsin-based job opportunities. 
Louisiana- Formerly located in Bogulsa, the main campus of Northshore Technical Community College (NTCC) has relocated to Lacombe. Having been in the works for years, the new campus recently opened for classes. This campus holds NTCC administrative offices and pays special attention to science, technology, engineering and math, commonly known as STEM disciplines, as well as maritime studies. 

This new Lacombe campus is only one portion of a much larger expansion project, called the Advanced Campus Project, for the Louisiana community college system. This new campus will soon welcome an Advanced Technology Center, followed by the construction of a facility focused on information technology. Furthermore, the system is currently searching for public-private partnerships to work on the upcoming third phase, which will develop a third campus. 

A New Jersey-based company named Marine Inc. has donated $200,000 for classrooms and an endowed scholarship. This company is also offering students the opportunity to spend time on its vessels for hands-on learning out at sea. This is a major investment, as the maritime industry plays a central role in Louisiana's economy, given the state's emphasis on oil and gas production and coastal restoration. This Advanced Campus Project has been an important plan for a while, and it has required a lot of cohesive cooperation with the partnership between St. Tammany Parish, state, federal, and local government and private entities.
Maryland- A study recently conducted by the Maryland Stadium Authority discovered that renovating the Pimlico Race Course would cost an estimated $300 million. This facility must be redeveloped to remain a home for the Preakness horse race each May, and there are talks on a public-private partnership to modernize the facility. 

The study released by the Maryland Stadium Authority details a plan to rehabilitate the track's clubhouse and grandstand, replace the backstretch barn area with more area for parking, and create a new stable area that will also have a tree-lined pedestrian promenade. Serving as the second portion of horse racing's Triple Crown, Preakness is Maryland's largest sporting event, drawing 135,256 people and $94.1 million in betting last year. 

A Canadian horse racing conglomerate that owns Pimlico, is looking to create a a public-private partnership to improve the facility. State officials have stressed the importance of the project, as the Preakness creates jobs and opportunities. The Maryland Stadium Authority will conduct a second phase of the study, and state lawmakers will deliberate public-private funding options for Pimlico during the 2018 legislative session. The project rests on Stronach Group's willingness to pay for at least a portion of the project. This second-phase study will cost $105,000 with the first phase costing $175,000.
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