Public-Private Partnerships, often known as the P3 model, are rising in the U.S. –and for good reason.
These mutually beneficial partnerships bring together private developers, architects and contractors to work together with local and state agencies for the benefit of both public and private sectors. The idea is to connect the efficiencies, competencies and capital generally seen in the private sector with public assets or services.
Because government officials are charged with directing the use of public funds, their goal is to find ways to be as efficient as possible. The P3 model has contributed to solving poor project performance on large capital investments. The results have been so positive that governing officials across California increasingly have supported the P3 model.
Public-Private Partnerships are an area of development in which Murfey Company excels. The Californian mixed-use luxury apartment community in San Diego’s Midway district in Point Loma is a good example of a more recent project that we met with great success. Murfey Company was the developer and owner/builder of this project – an 81-unit apartment property, featuring 3,137 square feet of retail space.
Murfey Company and Bishop & Company formed an entity named K&K Veritas LP, and together with the San Diego Community College District they were able to forge a Public-Private Partnership in order to create a successful project. Pacific Western Bank financed the project.
Murfey Company is a strong supporter of Public-Private Partnerships, because the approach has many advantages. These benefits include:
· Focuses on consumer satisfaction and life cycle maintenance
· Allows for new sources of investment
· Encourages faster project completions and reduced delays on infrastructure projects due to the shared allocation of risk, the integration of resources and the application of best practices
· Ensures budgets remain on track and schedule objectives are met at a greater level to traditional public sector project delivery in which a project is owned, managed, and financed by a government agency
· Shifts risk to private companies because they manage the projects
· Allows for greater efficiency at the governing level. Theoretically, if the governing agency reduces budgets and lowers budget deficits, the taxpayer ultimately benefits.
Murfey Company, a leader in residential and nonresidential development in San Diego and Southern California, has a solid history of on-time on-budget delivery. For more information on how Murfey Company can builds partnerships for successful projects, visit www.murfeycompany.com.
This article originally appeared in The La Jolla Light