Limited funding for school construction projects has caused state and local governments to turn to alternatives for financing.
The School Board and School Property Development’s interests can align in specialized project delivery systems called public private partnerships, or P3s. Under these unique agreements, a School Property Development will assume the costs and financing for the school construction will be entitled to revenue-generating activities related to the project upon completion.
P3s are structured to encourage direct private investments in school construction projects and the School Board is able to shift the risk and funding burdens onto School Property Development.
The cost savings and efficiency recognized are too substantial to ignore in this time of limited public resources for new school construction.