Government Flashcards
1
Q
P3s:
A
public private partnerships
2
Q
Growing presence of P3s:
A
- increasing costs
- decreased public appetite for subsidies
3
Q
How do the public and private have different value systems?
A
- public: looking for social, intangible benefits
- private: looking for financial returns
- potential for friction
4
Q
How do the public and private have different constraints?
A
- public: bureaucracy, accountability, transparency (slower process)
- private: entrepreneurial, confidential (fast acting)
5
Q
Incentives for private sector to work with public:
A
- access to land
- low-cost development capital
- zoning and permits
- tax incentives
6
Q
Incentives for public to work with private:
A
- management expertise
- reduced labour costs
- adaptability to scale of service
- reduced liability risks
7
Q
Public sector leasing:
A
- typically public entity owns facility and leases to private party
- buyout clauses
- conditions
8
Q
Leaseback arrangements:
A
- public leases back from commercial sector
- can access equipment and facilities without up-front $$$
- construction borne by private sector
9
Q
City and local pro hockey franchise:
A
- $3.3M project
- team builds and operates arena using tax-exempt bonds
- leases back 20% of ice to city
- city leases 8 acre land parcel for $1/year over 25 years
- team gets new facility and preferred ice slots for much lower than market rate
- city gets more ice for public use for opportunity cost of land
- team pays less than market price (lease and bonds) and guaranteed lease $$$ from city
10
Q
Public sector takeovers:
A
- where public takes over private facility
- justifiable where the asset would otherwise disappear or sport and rec opportunities not provided elsewhere in the community
- can allow public purchase of asset at greatly reduced prices
11
Q
Private sector takeovers:
A
allows public to pass on burden of operations
12
Q
Private sector pump-priming:
A
- developer encourages public expenditure so that facility drives up demand and property values
- developer gets rid of tax burden on land, increase in other development
- public gets free land to build course, may make project financially sustainable
13
Q
Example of private sector pump-priming:
A
Salt Lake City Winter Games
- real estate developer gives 386 acres to state agency for winter sports park
- in exchange, an access road was built to the park that was accessed through 750 acres of developer’s land
- agency also paid for power, water, sewer to 700 new residences and park
- land was worth $5M; 10 years later alone worth $48M
14
Q
Expansion of existing public facilities:
A
- private business invests $$ for renovations, improvements, or expansion
- must ensure that construction is up to agency standards
15
Q
Multiparty arrangements:
A
- quasi-government agency created to govern partnership
- usually a special authority or commission
