Using the PPEA for Downtown Revitalization

1
Using the PPEA for Downtown Revitalization

• Virginia Downtown Development Association
• Christopher D. Lloyd
• October 4, 2007

2
Presentation Overview

• Legislative History
• Overview and Process
• Virginia Experience
• Procurement Strategies

3
PPEA History

• Built on the successes of the PPTA (895, 288, 28,
  Coalfields Expressway)
• Design-Build Review Board created in 1996, overly
  cumbersome process
• Passed General Assembly in 2002
• Model Guidelines issued in October 2002, state
  guidelines in December
• First comprehensive agreement signed July 1, 2003
  (Stafford County)
• Amendments occur in 2003, 2004, and 2005
• Additional changes in 2006 regarding FOIA, public
  disclosure, oversight
• 2007 amendments require greater participation by
  the appropriating body

4
PPEA Overview

• What is it?
• - An alternative procurement tool that allows
  public entities to more efficiently develop
  infrastructure and achieve better value for the
  taxpayer
• - Vehicle to use design-build practices
• What it is NOT?
• - A panacea that resolves all procurement issues
• - A way to get something for nothing

5
PPEA Overview

• Allows for solicited and unsolicited proposals to
  develop or operate a qualifying project
• A qualifying project is
• education facility (public school and higher ed)
• equipment to enhance public safety and security
  at public buildings
• utility and telecommunications and other
  communications infrastructure
• recreational facilities
• Technology infrastructure
• any building or facility that meets a public
  purpose and is developed or operated by or for
  any public entity
• any improvements necessary or desirable to any
  unimproved locally- or state-owned real estate

6
PPEA Process

• Public body adopts PPEA guidelines
• Private entity submits proposal to public body or
  public body issues a solicitation for proposals
• Public body makes a written determination whether
  the project is developed using competitive bid or
  competitive negotiation
• Competitive negotiation can proceed if the public
  body determines that this method is likely to be
  advantageous because of the probable scope,
  complexity or urgency of the project or risk
  sharing, added value, an increase in funding or
  economic benefit from the project that would not
  otherwise be available

7
PPEA Process

• Private entity secures confidentiality agreement
  for FOIA protection
• Private entity submits a conceptual proposal for
  review (qualifications and experience, conceptual
  schedule and cost, public benefit)
• Open competition period of not less than 45 days
  (no minimum for solicited projects)
• Public body determines whether or how to proceed
• If public body moves forward, asks for a detailed
  submission (accelerated process permitted)
• At this phase, schedule and price become locked
  in
• One proposer is elevated to the
  interim/comprehensive agreement stage

8
Benefits of PPEA Delivery

• Private sector participation permits use of tax
  credits and other financing vehicles that have no
  value to the public sector
• PPEA and design-build are nationally recognized
  procurement tools with accepted contract
  structures
• Allows for more local government participation in
  the procurement decision not managed by a
  one-off entity
• Public disclosure requirements may insulate
  against criticism of closed door negotiations

9
PPEA Implementation

• What is happening across Virginia?
• School facilities in Falls Church,
  Fredericksburg, Chesterfield, Winchester, Bedford
  County, Warren County, Stafford County, City of
  Harrisonburg - agreements signed
• Pending school projects in Cumberland and
  Northumberland Counties
• Public safety facilities in Roanoke, Stafford,
  and Frederick Counties
• Capitol Square redevelopment
• James City County recreational facilities
• DOC Prison construction program (Centex),
  regional jails
• Parking decks (Fredericksburg, Roanoke,
  Winchester)
• Technology projects (VITA)
• Prince William and Chesapeake human services
  offices
• Bedford County Public Service Authority
  facilities
• Crater Regional Public Safety Training facilities
• Virginia Beach Performing Arts Center
• Prince William Service Authority facilities
• Loudoun County government complex
• Virginia Department of Taxation headquarters

10
PPEA in Downtowns

• Fredericksburg, Roanoke and Winchester parking
  garages
• Fredericksburg schools, public safety center,
  water and sewer projects
• Herndon redevelopment
• Richmond Performing Arts Center

11
PPEA Opportunities

• Redevelopment of state owned properties
• City offices
• Hotel/convention centers
• Parking
• Infrastructure upgrades
• Student housing

12
PPEA Implementation

• What Makes Projects Go Well
• Open and collaborative process between public and
  private sectors
• Atmosphere that encourages innovation and
  creativity
• Include public, press and other stakeholders
• Objectives (cost savings, time, limits on risk)
  are clear from the beginning

13
PPEA Implementation

• What Makes Projects Go Bad
• Unnecessary closed door discussions
• Public sector shifts all risk, not willing to pay
  for it
• Staff objections to process
• Cost overruns and scope creep
• Public sentiment turns away from development
• Negotiations never end
• Project is overly defined or restricted

14
THE END
Business Expansion Services Constituency
Development Economic Development Federal
Budgeting and Contracting Advice Federal
Legislative Assistance Grassroots Contact
Program Issue Advocacy PAC Consulting
Public Infrastructure Finance Public-Private
Partnerships Referendum Campaigns State
Government Relations ATLANTA BUCHAREST
CHICAGO SPRINGFIELD RALEIGH RICHMOND
TYSONS CORNER WASHINGTON, D.C. www.mcguirewood
sconsulting.com