The adage “what’s old is new again” perfectly captures the cyclical nature of trends. Whether it’s fashion from the ’70s, ’80s, and ’90s making a comeback; architectural revivals of mid-century modern and Art Deco styles; or the remakes and reboots of beloved movies, music, and television shows, nostalgia drives the resurgence of past ideas. This cyclical nature isn’t just limited to culture and style — it also applies to public assembly development.

Public-private partnerships (PPPs), a concept first popularized several hundred years ago, have reemerged as a pivotal strategy in modern public assembly development. Throughout history, PPPs have played a crucial role in large-scale public works, including Renaissance Florence’s bustling streets, the British East India Company’s trade routes, and the construction of the Erie Canal. These historical examples illustrate how public and private sectors have long collaborated to achieve remarkable feats that neither could accomplish alone.

The Medici family in Florence financed numerous public works through their powerful banking operations, combining private wealth with public benefits. The British East India Company, granted a charter by Queen Elizabeth I in 1600, exemplified a collaboration where private investment and government support spurred economic expansion. The Erie Canal, constructed between 1817 and 1825, showcased how substantial private investment, combined with state bonds, could achieve remarkable infrastructure projects.

Today, PPPs provide a flexible and effective method for municipalities and universities to address the financial and operational challenges associated with large-scale projects. Here, we shed light on the trends, advantages, and intricacies of PPPs, drawing from extensive experience in the field.

Trends in Modern PPPs for Public Assembly Venues

In recent years, the landscape of PPPs for public assembly venues has evolved significantly. Post-COVID construction cost spikes have compelled municipalities and universities to increasingly turn to PPPs. Private investment can significantly offset ownership and operational costs, offering a viable solution to budgetary constraints. These partnerships vary in structure, with some aimed at reducing construction expenses, while others focus on minimizing operational costs or enhancing economic and fiscal impacts to support public debt service.

Differences Between PPPs and Traditional Funding

Traditional funding methods for public venue development often involve public entities issuing bonds to cover the entire construction and development costs. In contrast, PPPs offer a variety of structures that can lower the financial burden on public entities. By bringing private dollars to the table, these partnerships can reduce the need for public funding and expedite project timelines through private design-build contracts.

Advantages of PPPs

PPPs provide numerous benefits, including the sharing or reduction of public construction and operating costs, faster project delivery, and greater economic and fiscal impacts through mixed-use developments. No two PPP agreements are identical, allowing for tailored solutions that meet the specific needs of both public and private partners.

Challenges for Municipalities

Despite their benefits, PPPs can be complex to navigate. Public entities often struggle to create opportunities that are financially attractive and operationally sustainable for private partners while ensuring their own goals are met. Successful PPPs require a thorough understanding of what makes a project viable for private entities and a commitment to achieving mutually beneficial outcomes.

Private Sector Benefits

From the private sector’s perspective, PPPs can turn otherwise questionable projects into profitable ventures. Incentives such as discounted land, tax breaks, and public infrastructure support can make a significant difference. A successful PPP is one where the private sector sees a desirable return on investment.

Victus Advisors’ Successful PPP Projects

Victus Advisors has been involved in numerous successful PPP projects. Examples include:

  • Park City Pickleball Facility: Currently assisting Park City in issuing an RFP and negotiating an agreement for a private entity to construct and operate an indoor pickleball facility on city-owned land.
  • New Aloha Stadium Entertainment District: Conducting feasibility studies and economic impact analyses for the public-private delivery of this ambitious project.
  • Hagerstown Indoor Recreation Center: Helping the City of Hagerstown establish a partnership for the development and operation of a new indoor recreation center.
  • OCVIBE and Angel Stadium: Supporting the City of Anaheim with market/financial analysis and negotiation support for public-private negotiations related to the OCVIBE music and entertainment district and Angel Stadium billboard signage revenue opportunities.
  • Virginia Beach Standards: Establishing standards and criteria for public-private venue operator relationships in Virginia Beach, including annual evaluation criteria and operating standards.

Key Components of Successful PPPs

A successful PPP requires a detailed and thorough process to engage potential partners, establish rapport, and negotiate fair and reasonable deals. Policies and procedures that ensure transparency and oversight throughout the partnership term are crucial. Ensuring alignment of public and private interests is crucial, as is community engagement, which plays a significant role in the success of these projects.

Lessons Learned

Through our extensive experience in PPP projects, Victus Advisors has gleaned critical insights that ensure the success and sustainability of these partnerships. Thorough vetting of potential private partners is paramount; establishing trust and rapport early in the process can significantly influence the project’s outcome. Understanding and proactively addressing financial risks is essential, as is maintaining transparency and accountability throughout the partnership’s duration. By applying these best practices, we ensure that our PPP engagements are both effective and mutually beneficial, leading to successful outcomes for all parties involved.

Conclusion

Public-private partnerships offer a flexible and effective approach to public assembly venue development, addressing financial and operational challenges through collaborative solutions. For municipalities considering a PPP, it is essential to establish clear project goals, identify potential partners, and engage in a thorough negotiation process to ensure long-term success. Victus Advisors stands ready to guide public entities through this complex but rewarding process, drawing on a rich history of successful PPP engagements.