Public/Private Partnerships

The importance of private/public partnerships in today’s business climate cannot be overstated. It has become increasingly apparent that governments at the city, county and state level across the nation have ongoing revenue issues. Infrastructure costs continue to mount as revenues continue to drop. This creates an opportunity to forge private/public partnerships (P3)  situations where private sector companies contract with governmental entities to fund and run specific projects. The attorneys at Clark Hill have counseled clients on both sides of these partnerships, representing the interests of both the private and public sectors in a wide variety of situations.

Each side of a P3 relationship has a unique perspective. The Government wants to protect its assets while mitigating the cost of running and operating them. The private industry wants to make profitable investments while fostering innovation and building revenue streams. With the best private/public partnerships, both sides achieve their goals: One side does not have to lose in order for the other to win. Clark Hill understands what it takes for government to work smoothly with private sector clients, and we can help all participants to navigate the business landscape as smoothly as possible.

Clark Hill is equipped to provide services across all phases of P3 projects: Design, Finance, Build, and Operate.

Design
The world of private/public partnerships can be dauntingly complex and, frankly, filled with red tape. The key is knowing how to unravel it all. Clark Hill has been involved in a great many of these partnerships from their very beginning bid stages, and worked through them with both our public and private sector clients on the many types of issues that arise including labor, zoning, licensing, legislation and regulatory hurdles.

Finance
Clark Hill attorneys have unique capabilities across areas such as Tax-Exempt Bond Financing, New Market and Historic Tax Credits and traditional commercial financing. We have represented universities, banks, and municipalities in finding the right blend of financing, which is essential to the implementation of a project. Clark Hill attorneys have been able to unlock projects that had been stalled because traditional funding sources were not sufficient. The Clark Hill P3 team has been able to unleash tremendous value for clients such as public universities that have needed capital projects. We have also assisted municipalities looking for a method to accomplish much needed improvements to governmental buildings in times of shrinking tax revenue. 

Build
When it is time to break ground on your P3 project, there is no greater ally than Clark Hill’s construction practice group to navigate through all areas of the construction process. Many of our attorneys have engineering degrees and contracting backgrounds which allow us to understand the day-to-day aspects of seeing a project to completion. We have assisted multiple clients in structuring RFPs and negotiating contracts. Our areas of strength include drafting of bid and contract documents, project administration, claim preparation and dispute resolution. 

Operate
Once the project has been built, there is a myriad of complexities during the operations phase. One of the most important is the management group that will be running the project on a daily basis. The structure of the management agreement or lease is key to the long term success of all parties. How these operating agreements are structured will have a significant impact on the project’s rate of return for both public and private investors.

Clark Hill represents clients across the nation, and has offices in nine states (Michigan, Pennsylvania, Illinois, New Jersey, Arizona, West Virginia, Delaware, California and Nevada), Washington D.C., and Dublin, Ireland. Each jurisdiction has unique guidelines to navigate in order to implement P3 projects. We also have partner lobbyists and attorneys in Ohio and Indiana that have the depth and breadth of knowledge to guide you through the possibilities and achieve positive outcomes.

Experience

Redevelopment of the iconic Argonaut Building in Detroit, Michigan at a project cost in excess of $150,000,000 through a multi-layered tax credit transaction involving State and Federal Historic Tax Credits, New Market Tax 

Represented a local municipality and economic development group in obtaining the first State of Illinois single community Redevelopment Authority with bonding authority of $200 million dollars

Represented investment group structure in the investment and assisted in raising $3,000,000 in capital to facilitate the acquisition of a community based financial institution

Represented commercial development client in the development of over 200,000 square feet of commercial retail strip centers located in the Chicago metropolitan area. Responsible for land acquisition, site planning/design; government entitlements; (zoning/incentives); analysis and procurement of project financing, and construction management. Utilized various economic development tools to improve profitability such as real estate tax rebates (class 8) and tax increment financing

Represented local municipality in the creation of a not for profit development entity to facilitate the development of a $500 million dollar comprehensive redevelopment plan to accommodate the acquisition and development of land for a multi carrier cargo development plan

Represented and counseled a not for profit developer in the establishment of a development joint venture in the construction of a 96 unit Section 42 federal tax credit low income senior housing facility

Represented development joint venture consisting of private equity firm and real estate developer for the development and construction of quick service restaurants throughout the United States

Acquisition and Development of Urban Office Building. Representation of a national developer in connection with (i) negotiating and drafting of documentation with respect to site acquisition, formation of single-asset limited partnership (the entity that owns and operates the project), development, construction contracting, and construction and permanent financing including multiple governmental loans and grants; (ii) assisting developer in obtaining zoning/permitting/approvals needed to develop project; and (iii) providing counsel in connection with environmental issues involving the site which was a "brownfield" site.
Acquisition and Development of Large Urban Housing Project. Representation of a national developer in connection with (i) negotiating and drafting documentation in connection with site acquisition, formation of single-asset limited partnership, project development, project development financing, construction management and contracting, construction and permanent financing including financing from government lenders, and property management; (ii) assisting developer in obtaining zoning/permitting/approvals needed to develop the project; (iii) providing counsel in connection with environmental issues; (iv) assisting developer in obtaining historic tax credits and a conservation easement; and (v) assisting developer in obtaining bridge financing for such easement and credits.
News
Clark Hill Attorney Ken Lane to Present at Michigan Association of Housing Officials’ 2014 Annual Conference June 11-13Clark Hill Attorney Frederick W. Hoffman Re-Elected to the Board of the German American Chamber of Commerce of the MidwestClark Hill Attorney Ray J. Koenig III Reappointed by Mayor Rahm Emanuel to Serve On the Chicago Commission on Human RelationsClark Hill Attorney Reginald Turner to Receive National Bar Association 2013 “Outside Counsel of the Year” AwardClark Hill Attorney Reginald Turner Receives 2013 Lifetime Services Award from the Detroit Institute of ArtsWayne County Executive Robert Ficano Appoints Clark Hill Attorney Reginald Turner to the Wayne County Airport Authority BoardClark Hill Attorney Joe Kopietz Named to Crain's Detroit Business 40 Under 40 for 2012Clark Hill Attorney Reginald Turner Appointed Chair of American Bar Association Commission on Racial and Ethnic DiversityAttorney Robert L. Schwartz Named in 2011 Edition of The Best Lawyers in AmericaRobert L. Schwartz Joins Clark Hill PLC, BirminghamClark Hill to Host “Opportunities in the Area of Renewable Energy Development and Associated Tax Credits” Panel DiscussionClark Hill Attorney Joseph S. Kopietz Presents “Low-Profit Limited Liability Companies – Expanding Access to Capital for Socially Beneficial Enterprises”Clark Hill Attorney Reginald M. Turner to Speak on Panel at “The Michigan Stimulus Impact” DiscussionClark Hill Attorney Joseph S. Kopietz to Present at Michigan Conference on Affordable Housing