Tag Archive for governement budget deficit

Garfield Traub Public Private Development Group Growing Fast

The term Public Private Development is quickly rising in popularity due to the success of those using Public Private Partnerships to obtain much needed funds to renew government infrastructure, improve transportation, and construct new projects that state, local and Federal governments could not afford before due to budget constraints.

Due to the importance and rapid growth of using Public Private Partnerships in today’s developments, Garfield Traub Development decided to create a Public Private Development group within LinkedIn, the world’s largest professional network. The group specializes in helping public/private sector decision makers involved in building developments to network with others in both the decision making and facilitation process of their developments.

“I am extremely happy with what our Public Private Development LinkedIn group has accomplished thus far. The quality of material that has been posted by members has exceeded my expectations,” said Mr. Garfield. “This has turned into such an impactful tool for those like me who are involved in the development process and for those looking for others to assist them in their developments.”

The group was started by Garfield Traub six months ago and already has more than 550 members comprised of public and private sector decision makers specializing in site identification and acquisition, zoning and entitlement, financing, investment, design and construction, leasing, management and asset management, as well as professionals such as general contractors, architects, engineers, specialty consultants, investment bankers, mortgage brokers, lenders and investors.

“Our goals are for professionals to get answers to their questions and for them to have the ability to give answers and suggest resources to help each other to succeed. This is especially important in this economic environment where constrained government budgets have made financing and development of essential facilities quite difficult,” said Mr. Garfield. “It is more important than ever for us to find ways to come together as we emerge from this recession and help each other and our clients succeed.

If you or anyone you know are involved in any part of the commercial real estate development process and would like to contribute or ask questions involving public private partnerships, you too can join Garfield Traub’s Public Private Development group on LinkedIn today for free. For more information on how you can get your public developments financed and completed, please visit the Garfield Traub website.

Public Private Partnerships (P3s) Solving Government Budget Deficits

Public Private Partnerships (P3)As Government budget deficits continue to climb for state, local and federal Governments, you will hear much more about the utilization of Public Private Partnerships, also known as, “P3s” or “PPP” to solve this problem. P3 projects are quickly rising in popularity due to the success of obtaining funds to renew Government infrastructure, improve transportation, and construct new projects that they could not afford before.

Public Private Partnership (P3) projects involve a contract between a public sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project. In some types of PPP projects, the cost of using the provided services is given exclusively by the users of the service and not by the more traditional method of using the taxpayer.

But why would a private company assume such a huge risk?

Like any investment with large risk, there is a great opportunity for an invested private business to make a lot of money. With Public Private Partnerships (P3s), revenues can be in the form of either a fee for service, paid by government, or fees collected from users, as in the case of highway tolls, automatically ticketed red lights, or hotels attached to convention centers.

One example of a development company successfully using Public Private Partnerships structured to benefit various parties, is Garfield Traub Development. Garfield Traub Development has developed over 40 hotels using primarily P3 funding. One example specifically is the Overton Hotel and Convention Center located in Lubbock, TX. This 303-room hotel with a 47,000 gross square-foot conference center is located across the street from Texas Tech University and Jones AT&T Stadium in Overton Park, the largest private redevelopment project in U.S. history, to date.

The hotel was financed with private debt and equity. The conference center was financed with City bonds to be repaid by site-specific occupancy taxes and property taxes. The capital plan also included naming rights, room licenses and nonprofit foundation grants.

The City now leases the conference center on a long-term basis to the hotel owner who operates the entire property. In addition, the hotel also partnered with Texas Tech University’s Restaurant, Hotel, and Institutional Management (RHIM) program to provide hands-on laboratory experiences in a variety of areas that will truly benefit the RHIM students, giving them the opportunity to become successful professionals in the hospitality industry.

With P3s solving Government budget deficits and successfully creating development projects like these, it is no wonder that they are on the rise. It really is a win-win situation for everyone involved and creates a solution to a big problem.

If you want more information on how Public Private Partnerships (P3s) might help you, visit http://www.garfieldtraub.com or e-mail Garfield Traub.

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