PUBLIC PRIVATE PARTNERSHIPS – AN IMPERATIVE FOR MONTGOMERY COUNTY

By Charles Kauffman, CEO Kauffman.com

Public- Private Partnerships (“PPPs”) represent a valuable means for Montgomery County to leverage resources of many kinds to work collaboratively with public and private partners. Partnerships take many forms and range widely in size and scope. Partnership activities center on the shared goals and mandates of the partners, leveraging knowledge, skills, resources and services to achieve synergy.

 Public- Private Partnerships can be utilized both in times of economic uncertainty and in periods of prosperity. There is a nexus between the public sector’s needs and the private sector’s goals. Local and State governments, particularly in today’s challenging economic times, need to  find innovative ways to provide funding to design, build, finance and operate projects.  While PPP’s proliferate around the globe, most of the emphasis has been on large projects. The purpose of this paper is to focus attention on creating smaller opportunities within Montgomery County to engage partners and actualize projects which are close to our needs. County government can start by outlining and prioritizing   projects and by providing the vision, organization and impetus to engage partners, assess assets, locate sources, and form coalitions between private and public parties. The County should be the leader in forming PPPs to develop projects, operate them and provide the oversight for continued quality assurance.

The PPP activities contemplated, range in scope and size from simple event sponsorship and in- kind volunteer support, to the funding of major capital projects. PPP activities can be as simple as providing funds to print and distribute informational material, to building libraries, schools and recreation centers.  The incentives for private partner participation, pragmatically, will vary with the size of the project. The important thing for the County is to develop PPPs to provide components for activities which have up to now been directly or indirectly funded by tax revenues. Projects created by PPP coalitions will be initiated with more public input resulting in greater use and acceptance. Coalitions will provide economies of scale and can advance causes that are in the public good.

In what may be a missed opportunity, the conditions for a meaningful PPP existed in the creation of the new Mid-County Recreation Center which opened on July 9^th 2011. The completely furnished eco-friendly building cost the County $18 million with future operational costs also to l be borne by the County. A project of this scope might have included the participation and sponsorship of many PPP participants. Inducements such as “naming rights” and others might have offset some of the initial and long-range costs. There are still ample opportunities within this particular project for some PPP involvement in funding operations and these should be actively pursued by the County.

Another, possibility for a PPP exists in the utilization of The Bethesda Theatre, as a Community Arts and Entertainment Center. The County has many other physical needs such as   classroom and administrative space, and recreational facilities.  It might consider volunteers as auxiliary police in schools or library assistants. A County “punch list” would undoubtedly yield viable projects for PPP participation. These need not be capital intense. Simple community informational events and publications have been curtailed by budget constraints. Very few assets would be required to restore these vital programs.

Advantage to the County

• Financial saving
• Professionally produced projects
• Future partners
• Advanced long term goals of providing assets to residents.

Advantages to Participating Partners

• Prestige and influence derived from a working relationship with County Executive, Departments  and Legislators
• Prestige of working relationships with major nonprofit and business organizations  related to the project
• Potential working relationships on other State, Regional and National projects
• New vital relationships and contacts
• Highly prestigious County endorsement.
• New business marketing opportunities.

Wider customer base resulting from heightened public awareness

AGING AT HOME DOWNTOWN – The new option for “Empty Nesters”
An article in the December 2005 AARP Bulletin about “Beacon Hill Village” had profound effects on retirement living. It described an association founded in Boston conceived by Susan McWhinney Morse to enable older adults to “age in place’ rather than moving to senior housing. Essentially it provided the services of assisted living but in your own home. To join and receive needed assistance, you paid a membership fee and receive free or discounted support services in your own home. The key was “one stop shopping”. By calling a “concierge” you could access anything from replacing a light bulb, to advice and assistance with Alzheimer’s. It included a number of necessary services such as household help and homemaking (cleaning, grocery shopping, errands, and meals), personal assistance, companionship, and nursing care plus social, health and cultural activities. The “Village” movement spread throughout the US with many variations, some involving non-dues paying membership, increasing reliance on volunteers, communal housing and more. It is still growing and that is good.
Older adults are showing more flexibility in their choices. The most profound change effecting the “village” – remain in your old home- concept is the increasing desire to move to urban areas. Districts which are doing more to create housing that enhances the lives of empty nesters are thriving.
One of the highest priorities of empty nesters is to live in a neighborhood near their families and friends. Lately more older adults find that high-rise apartments and duplex town houses are “age friendly” offer ease of maintenance, nearby shopping, more convenience, better transportation options, more walkability, Older adults seek homes where there is life, energy and a wealth of choices – more easily accessible. They want the intergenerational mix and they want their independence. They find that living without stairs is safer, maintenance is cheaper, and the need for driving is less, they can get by with one or no cars. A recent article in the Wall Street Journal cites Bethesda as one of the top ten “walkable communities”, as is Arlington, Rockville, Friendship Heights and Tysons.
Jane Jacobs said “the presence of great numbers of people, gathered together in cities should be enjoyed as an asset and their presence celebrated”. Suburbs which have prospered, share the attributes of walkability, vibrant street life, density and diversity with urban neighborhoods. Theresa Brewer put it another way:
When you’re alone
And life is making you lonely,
You can always go downtown.
Government can certainly help … changing zoning and housing regulations to encourage “mixed” commercial and residential use, more open spaces, safer pedestrian cross walks, bikeways, better lighting, more public spaces, more accessible public transportation, greater expansion of “universal design’ concepts, more moderately priced senior housing. Multifamily dwellings increase tax derived revenue for government, maintenance of infrastructure to service multifamily dwellings is less, Medicaid and related care and transportation costs for government are reduced when care is given in a patient’s own home rather than in a nursing facility. Thus government can afford to provide more of the health, recreational and social amenities older adults enjoy.
Government alone cannot create great places to live and grow older – private sector businesses, retailers, developers, academic institutions, health care organizations, social service providers, architects, religious and civic institutions must work together to make downtown neighborhoods more age-friendly. Aging in Place has evolved and the demand for ‘empty nester” housing is rapidly growing. Capitalizing on it involves energetic, pragmatic, public and private collaboration.
Charles Kauffman

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Charles