Privately Funded Infrastructure Grants

[udpolo15]

Is anyone aware of a mechanism that a private entity can fund a municipal infrastructure project (sewer system) without giving the money directly to the municipality?

I am thinking something along the lines of a revitalization or community development organization. Any idea or examples would be appreciated.

 

[Road Guy]

they do them with transportation , P3, they get a concesionaire to fund it and make all payments, and in some cases the concessionaier actually pays the owner some money for maintenance.... but those are generally based on tolls, but i dont know why they couldnt be based on water bill payments or something??

 

[Chucktown PE]

Are you talking about a private entity financing a construction project or a private entity building the project and having the municpality own it but the capital cost being paid back through a revenue sharing agreement.

There is an example in Atlanta where a private developer built the Cauley Creek Water Reclamation Facility, however the developer retained ownership, and was paid by the Fulton County government for its use. I think the agreement was that after he recouped his cost + profit he sold the facility back to Fulton County.

There are other companies that specialize in this type of public-private partnership work, Veolia Water, American Water, OMI (owned by CH2M Hill), etc. They can do the capital funding as well as operations contract.

 

[udpolo15]

My client just wants to fund a portion of the work and for a variety of reasons (mainly oversight) wants to funnel the money through an third party (ie, give money to the state and the state then issue a grant to complete the work).

I can't really provide more info than that, but it doesn't appear to be any out of the box mechanism to accomplish this.

 

[Slugger926]

Many college atheltic programs may have some good examples.

Oklahoma State has Cowboy Sports (trust fund/private company) that is funded by donations mostly by T. Boone Pickens, who then invests the funds in Cowboy Sports into his hedge funds with the profits going to build the new football stadium, sports complex, sports cafeteria, and training facilities. When the projects are done, Cowboy Sports will still own the principle donated by corporations, alumni, and T. Boone Pickens.