Leveraging Public-Private Partnerships for Project Development: Deal Structures and Documentation

Description

In the past decade, the public sector has implemented innovative uses of P3s to meet the challenges of decaying facilities and infrastructure. More states have passed broad laws enabling their use for construction of a wide range of public projects. But structuring a P3 requires achieving a balance between the private sector's need for early capital and the public sector's need to limit risk.

New opportunities, including the current national focus on bringing manufacturing back to the U.S., require potential private partners and their counsel to understand the many different P3 structures, each of which allocates risk and control differently. Financing available in the public arena includes tax increment financing, PILOT programs, improvement districts, sales tax sharing, and tax abatements. Counsel must be able to navigate the documentation processes for each.

The debt-equity capital stack will vary with each deal. Most projects will also have a temporary financing structure during construction followed by a permanent structure upon completion or some later point. The public sector has numerous capital sources that can lower the cost of capital for public/private projects, including municipal bonds and tax credits. P3 counsel must understand the structures of each and how they fit into the lifecycle of the transaction.

Listen as our authoritative panel discusses how counsel to private developers and investors can knowledgeably leverage the opportunities of P3 projects, decide which is the optimal deal structure, and provide best practices for P3 documentation to mitigate risk.