Riverside County Libraries
French Valley, CA
Desert Hot Springs, CA
$42,000,000 In Financing
The County of Riverside had a need to provide libraries in three separate communities and get them built quickly and efficiently through a Public Private Partnership. The solution was to use CFP3, a 501(c)(3) charitable organization, to build the three libraries simultaneously, in Menifee, French Valley, and Desert Hot Springs, CA.
The deal was backed by a 30 year facilities lease signed by the County and financed through tax-exempt Lease Revenue Bonds. The transaction closed in August 2019. CFP3 took on the operation and maintenance of the buildings and hired a Property Manager to do that work.
The savings by doing the project with a 501(c)(3) and with tax-exempt debt vs. doing the project with a for-profit entity using taxable bonds will be over $24 million during the 30 year term. The rate achieved was similar to what could have been achieved with General Obligation (GO) bonds.
In addition, all three libraries will be completed in 18 months and at least a year ahead of the expected completion date had the County gone to traditional financing and development options using GO bonds.