The report, which was prepared The PFM Group can be found at http://www.lacity.org/ctr/audits/FinalControllerP3_122208.pdf
What I find especially meaningful about this report is that it serves as the City's official recognition that P3's can potentially serve as innovative project delivery models and, furthermore, can provide the benefits of cost savings, more efficient services, access to the untapped market value of existing services, innovation, the implementation of new and emerging technology and the transfer of risk to entities that are better adept at managing that risk.
Architecture and infrastructure projects can no longer depend on the funding of ever-increasingly fiscally challenged municipalities, yet these projects must get built to serve the needs of the region. Therefore, P3's provide a potential mechanism - a delivery model - that might indeed be applicable on a case by case basis.
In essence, Public-Private Partnerships provide a pathway to economic recovery.
An example of a section of the report:
VACANT AND UNDERUTILIZED LAND
The many underutilized buildings, parcels, and parking lots throughout the City offer excellent opportunities for joint development. The key to capturing untapped market value is to change the land use designation and sell that asset at its highest and best use.
For example, the City could sell a 100 space surface parking lot to the private sector for $1.0 million. Alternatively, the City could entitle the land for mixed-use development, with a combination of retail, office, and residential (including affordable housing). The land could be sold with deed restrictions regarding the number of parking spaces, office space, and affordable housing units. This would allow the City to achieve a portion of its policy goals regarding: parking/density land use, transit-oriented development, and affordable housing. Under this development scenario the parcel might be sold for $3 or $4 million, which would not only increase the City reserves, but also provide a greater and ongoing(property tax) revenue base.
Proposals should encourage innovation and participation from the private sector; they should not be so rigid as to have a predetermined vision for development of the property. Allowing the private sector the flexibility (by providing general development parameters) to determine how the parcel would be best used will likely result in greater economic gain.
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