While much of the discussion around public-private partnerships often focuses on funding, anyone who has worked on large-scale construction projects knows that securing financing is just the first step to success. True success is a project completed on time, on or under budget and up to the quality standards set by the owner. That is particularly true for large, public projects. When multiple parties are involved, project execution must be on point to ensure that all involved benefit.
For more than a year, P3 Kentucky has been writing about Madison County Fiscal Court’s innovative plan to develop a comprehensive Healing Center to help address the county’s growing drug epidemic and severe overcrowding in its jail due to drug abuse. It’s a real problem that is draining the county’s financial resources and having a severe impact on the community’s workforce and economic development potential.
Thursday was a monumental day in Louisville, as fans, investors and elected leaders from the city and state came together to celebrate the start of a $65 million stadium project for the Louisville City FC professional soccer franchise. Nearly everyone who took the podium during the event noted that the project couldn’t have happened without a bold vision from the private-sector investment group and some support from the city and state.
The Commonwealth of Kentucky has issued a request for proposals to find an adviser for potential public-private partnership projects across all state agencies. The government is seeking qualified advisers to provide P3 consulting for all state agencies. According to the tender the P3 consulting shall include:
Veteran financier Jacob Schirmer has been named Managing Director of the Commonwealth Infrastructure Fund (CIF), a privately managed fund formed last year to support investments in public-private partnerships (P3s) in Kentucky. Schirmer will lead the investment fund’s day-to-day operations.
A major development with multiple hotels, restaurants, entertainment venues and retail outlets could be coming to 133 acres of land adjacent to Freedom Hall and the Kentucky Exposition Center, if the Kentucky Tourism, Arts and Heritage Council finds the partners and plans it’s seeking to guide the effort.
For anyone who missed it this week, the Kentucky Transportation Cabinet outlined its plan to repair and rebuild roads and bridges throughout the Commonwealth over the next six years. The plan details investments totaling more than $8.5 billion for 1,400 projects throughout the state. It’s a great start but far short of the state’s needs.
Amid all the discussion around Kentucky’s pension reform, state budget and tax reform efforts, Kentucky legislators easily passed and Gov. Matt Bevin signed P3 legislation this week that is expected to simplify the way public-private partnerships are approved in the state.
Kentucky economic development leaders are getting out the word about our pro-business initiatives — including legislation to allow public-private partnerships — and gaining some national attention from site selection publications.
The federal income tax legislation signed late last year by President Trump ushers in sweeping tax law changes that significantly benefit the construction industry.