March 26, 2017

March 24, 2017

Subscribe to Latest Legal News and Analysis

March 23, 2017

Subscribe to Latest Legal News and Analysis

Public-Private Partnerships (P3s) Continue to Gain Momentum

Although the public-private partnership (P3) model was used to provide most public infrastructure and services until the early 20th Century, for the past several decades, P3s were few and far between in this country. Recently, three factors have contributed to a renewed interest in the public-private model: (1) aging infrastructure that needs to be replaced; (2) diminished public funds that cannot alone finance the needed improvements; and (3) growing P3 success stories throughout the world, particularly in Canada and Europe. However, in part due to the dearth of recent, local P3 experience, government agencies in the U.S. have opted for a toe-in-the-water approach to P3s.

P3, private PartnershipYet, more and more agencies are proving that the waters are fine, and with each successful P3, willingness to employ the model continues to grow. Significantly, we are now at the point where some the early “new” P3s have already been substantially completed, and the results are impressive. Twenty years ago, the Department of Defense initiated the Military Housing Privatization Initiative, which utilized a P3 approach to build, operate, and maintain military housing, and that program is now widely accepted as a major success, with hundreds of thousands of high-quality units having been delivered at a lower cost and in less time than under the traditional model. Based on that success, DOD is now considering more P3s to provide a wider variety of facilities and services.

Similarly, with the continued success of the Eagle light rail P3 in Denver, which opened for operations this summer, more and more state and local governments are now pursuing rail and transit P3s throughout the country. These projects include a P3 train station for PennDOT, a high-speed line connecting Dallas and Houston, and a plethora of potential light rail projects in Los Angeles County. Here in Miami, the Metropolitan Planning Organization recently adopted a plan to prioritize six major rapid-transit corridors throughout Miami-Dade County. Whereas mass-transit projects have in the past withered and died while awaiting for a sufficient allocation of public dollars, the P3 model could be employed to overcome budget shortfalls and move these important projects forward with haste.

© 2017 Bilzin Sumberg Baena Price & Axelrod LLP

TRENDING LEGAL ANALYSIS


About this Author

Albert E. Dotson, Government Procurement Attorney, Bilzin Sumberg Law firm
Partner

Albert E. Dotson, Jr., Land Development & Government Relations Practice Group Leader, handles federal and local government procurement contracts and compliance. He also represents real estate developers in securing land use, zoning and other government approvals and permits for large-scale real estate developments. Al routinely negotiates economic development incentive programs on behalf of major U.S. corporate clients.

Al's work includes representing developers and contractors in complying with the government procurement procedures of various agencies of the...

305-350-2411
Eric Singer, land development, government relations lawyer, Bilzin Sumberg Law Firm
Associate

Eric Singer is an Associate in the Government Relations & Land Development Group. His practice focuses on government procurement contracts and the development approval process, including planning and zoning applications, government approvals and permits. Eric also represents clients in quasi-judicial matters and has handled land use cases in state and federal courts at the trial and appellate levels.

305-350-2354