1. Find the Lowest Cost P3 Financing
Tax-Exempt debt is used because it offers significantly lower interest rates than private financing. But it may be only one tool in creating the lowest possible financing solution. Other creative tools can also help take a project from un-doable to doable.
2. Leverage the Power of Private Developers
Private Developers bring a wealth of benefits to a P3 project. They already have experienced in-house staff who know how to control costs and get projects designed and constructed efficiently and on time, without sacrificing quality.
3. Allow the Public Entity to Retain Control
At the end of the day, a city, county, state or any other public entity needs to maintain control. They are paying for the project over the long term and should be able to assume ownership with no further delay once bonds have been retired.
4. Fair and Proper Relationships
P3 contracts fairly recognize the value that all private partners bring to the table, rewarding hard work and cost stewardship, while reducing the burden on the public entity.