Creative revenue sourcing alternatives.
Local and state governments are increasingly turning to public-private partnerships (P3) to generate alternative revenue sources and deliver public services. The popularity of P3 transactions continues to rise as the "Great Recession" erodes government resources while our country's infrastructure needs expand. To the casual observer, P3 transactions may appear to be a relatively new concept. At Buchanan Ingersoll & Rooney, however, we have been representing public and private parties in these transactions for many years.
In a P3 transaction, the private sector contracts with a governmental or quasi-governmental entity to provide, among other things, alternative financing, revenue sourcing and/or management of public assets or services. Given the complexity of, and public process inherent to, these transactions, a P3 is susceptible to public controversy and costly delays in the procurement process. Accordingly, private and public entities alike are seeking sound and practical advice that accounts for the business, political and social sensitivities that accompany P3s.
When bridging public and private interests, it is critical to have a seasoned law firm such as Buchanan Ingersoll & Rooney on your team. In the course of our prior representations, we learned that both sides in a P3 transaction share a common need — cost-effective, strategic advice with respect to deal structure, financing and expectation management, as well as engagement of key political and social leaders. Our proven ability to navigate the political landscape and provide a tailored package of experienced legal advisors enhances the likelihood of a successful P3.
Transactional Know-How
Our P3 Practice Group includes real estate, public law and finance and governmental contracting attorneys who are extensively experienced in managing the sale, lease and financing of government assets to private parties (and vice versa). We represent municipalities, local and state authorities and federal agencies in financings, real estate acquisitions and construction projects. Moreover, our private clients rely on us for advice about government contracting and projects involving the acquisition of public property or funds.
Political Savvy
Professionals from our firm's government affairs practice, all of whom are recognized as leaders in their field, provide the experience necessary to complement our transactional skills. These professionals work to identify and address the key political considerations in each P3 transaction and have a demonstrated ability to shepherd clients' projects through government channels while building public support for the project.
Real-World Success
Our firm has managed many high-profile P3 transactions for a wide variety of private and public sector clients. These transactions have resulted in successful transportation projects, port facilities, convention centers, stadiums, arenas, water and sewer projects, prisons and parking facilities. Some highlights include:
- Representation of Pittsburgh's Sports & Exhibition Authority (SEA) in the negotiation of the lease by private entities of the SEA's property for the development of a $290 million multi-purpose arena, which is now the Consol Energy Center — the home of the Pittsburgh Penguins.
- Representation of the City of Carlsbad, California in a P3 transaction with Poseidon Resources Corporation with respect to the development and construction of a $650 million desalination facility, the largest in the Western Hemisphere.
- Representation of the Pittsburgh Steelers in the leasing of real estate from a public authority for the construction of Heinz Field.
- Representation of an international financial management service in its bid to lease the Pennsylvania Turnpike.
- Representation of the Public Parking Authority of Pittsburgh with respect to the long-term concession of the authority's parking assets.
- Representation of an international investment bank engaged by the City of Harrisburg and Harrisburg Parking Authority as financial advisor for a long-term lease of the Harrisburg Parking Authority's assets.
- Representation of the City of Indio, California in the analysis of whether the sell or lease its public water system to a private water company.