Archives: P3s

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P3 Investors: Are You In The Zone?

Last December we told you about favorable IRS guidance letting P3 contractors and investors keep full tax deductions for interest on debt.[1] The IRS kept a P3-friendly approach in last week’s proposed regulations on “qualified opportunity zones” – which, like the interest limitations in our December post, come from the 2017 Tax Cuts and Jobs … Continue Reading

P3 Policy and Delivery Summit in Washington D.C. May 14-15

One of the key events for the P3/infrastructure industry this year will be the P3 Policy and Delivery Summit, which is being held in Washington D.C. on May 14th and 15th. The Summit is taking place during, and in partnership with, Infrastructure Week, and is poised  to attract industry leaders from the private sector and … Continue Reading

Bipartisan Support for Bill Authorizing Tax Exempt Financing of Public Buildings

A pair of Senators from both sides of the aisle, Senator Todd Young (R-Ind.) and Senator Catherine Cortez Masto (D-Nev.), introduced the Public Buildings Renewal Act of 2019 last week, which would authorize the use of tax exempt financing along with private equity to rebuild schools and public buildings through public-private partnerships.  “We owe it … Continue Reading

P3 Industry Gets an Early Holiday Present in IRS Guidance on Interest Deduction

Contractors and investors in P3s can continue taking a full tax deduction for interest on debt under recent IRS guidance (Revenue Procedure 2018-59, issued November 26). Many P3s are highly leveraged, and the interest deduction is a valuable tax benefit for developers. Were this deduction restricted, P3 developers’ (and by extension governments’) costs would rise; … Continue Reading

Commercial Close Achieved for Groundbreaking ConRAC Project at LAX

Los Angeles World Airports (LAWA) and LA Gateway Partners (LAGP) have reached commercial close on the design-build-finance-operate-maintain (DBFOM) agreement for the consolidated rent-a-car facility (ConRAC) at Los Angeles International Airport (LAX).  In reaching this milestone, LAWA’s ConRAC project becomes the first public-private partnership for a ConRAC facility in the United States.  LAGP will now proceed … Continue Reading

Port of Wilmington Uses P3 Concession to Develop Port Facilities

The State of Delaware and a subsidiary of Gulftainer Company Limited (“Gulftainer”) have finalized a concession agreement for the operation and further development of the 100-year-old Port of Wilmington (“Port”). While the concession agreement signed on September 18, 2018 is not publicly available, it is expected, based on deal terms described in Port documents submitted … Continue Reading

LA Metro Announces P3 Job Opportunity

Los Angeles County Metropolitan Transportation Authority has posted notice of an opening for a position as “Manager, Innovation” in its Office of Extraordinary Innovation. The job responsibilities will include: Managing and facilitating evaluation of unsolicited proposals submitted to the OEI Managing OEI’s P3 advisors Managing pre-procurement activities for P3 projects such as project screenings, qualitative … Continue Reading

New Federal Transit Administration Rule Seeks to Remove Barriers to P3s

In an effort to promote project flexibility, funding innovation, efficiencies and timely implementation, this week the Federal Transit Administration (FTA) released its final rule regarding P3s (and other private involvement) in public transportation projects. The “primary goal” of FTA’s “Private Investment Project Procedures” (or “PIPP”), new 49 C.F.R. Part 650, is to “identify and address” … Continue Reading

Commercial Close Achieved for the Automated People Mover (APM) Project at LAX

The Automated People Mover (APM) train system project at Los Angeles International Airport (LAX) reached a remarkable milestone this week with Los Angeles City Council’s unanimous approval of a $4.9 billion agreement with  LAX Integrated Express Solutions (LINXS). With City Council’s approval in hand, the City, acting through the Los Angeles World Airports (LAWA) Board of … Continue Reading
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