Going private for the public good with P3 funding for building projectsFacing reduced tax revenues, an economy still recovering from the global pandemic and fears about a looming recession, many public agencies are looking for creative ways to secure budgets for projects.
For public agencies, this arrangement offers an enticing mix of tax-exempt debt which is free of voter approval, accountability for timely project completion, and the ability to leverage private sector efficiencies and expertise – all without sacrificing input and control of a project. Gaining public support, securing tax dollars via bonds and levies, keeping a project on time and on budget – these are often major hurdles for even the most necessary project. Even more so for agencies that don’t typically handle large-scale projects.
That’s why we’ll likely see an increase in P3s going forward. Private developers are not constrained in the same manner as public agencies and are able to function more efficiently, and their building expertise, and knowledge of advanced building technologies, provides a level of reassurance that a major project will meet the public’s needs without exploding municipal budgets.
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