NHA Advisors is a leader in the negotiation of public-private partnerships. For more than three decades, our principals have negotiated dozens of public-private partnerships, working for both public agencies and private companies looking to develop capital projects in conjunction with public agencies.
How do we do this?
NHA Advisors is actively involved in the negotiations between the public agency and private entity. We serve as project manager throughout the process to ensure that both parties understand the parameters and legal limits for each project component and the financing. Our goal is not simply to justify a public financing, but to negotiate a business deal that will bring a project out of the ground and benefit all parties.
What types of projects have we worked on?
NHA Advisors has negotiated public-private partnerships for a variety of projects. We have worked with both public agencies and private parties throughout California to bring these projects to fruition. Some examples of the types of projects we have worked on include:
- Transit-Oriented Mixed-Use Developments
- Transportation Centers
- Roadway and Street Improvements
- Commercial-Retail Developments
- Amusement Parks
- Healthcare Facilities
- Master-Planned Residential and Commercial Development
What is a public-private partnership?
A Public-Private Partnership (also known as “P3” or “PPP”) is a partnership between a public agency and the private sector designed to more effectively provide services and infrastructure traditionally provided by the public sector. Such partnerships are characterized by the sharing of risk, responsibility and reward between the partners. As a result, public-private partnerships have become the single most effective tool for economic development.Learn More
WHAT SERVICES DO WE PROVIDE?
NHA Advisors believes that the key to successful P3 projects is for both the public agency and private developer to truly understand each other’s goals and financial constraints. Accordingly, we provide the following services to help identify and achieve a common goal:
Guide an In-depth Discussion of the Qualitative Goals
One primary goal is simply to help both parties understand each other. NHA Advisors principals have been guiding P3 negotiations for more than three decades. Our understanding of the inner dynamics of both public agencies and private developers enables us to guide discussions and develop a strong foundation of mutual understanding for future negotiations.
Financial Modeling of the Developer and Public Agency Cash Flows
We realize that developer cash flows contain private, sometimes sensitive, information. However, we have found that disclosure of certain financial challenges faced by the developer in an effort to execute a successful project can markedly advance negotiations. NHA Advisors’ extensive experience serving both public agencies and private developers in P3 negotiations allows us to know what financial modeling is required (and what should be disclosed) that will best advance the negotiations.
Education on the Legal and Financial Constraints of Public Financing
We sometimes find that developers do not have a good understanding of what is legally and financially feasible for a public agency. Just as the public agency needs to understand the financial challenges for the private developer, the developer needs to understand the legal and financial limits of the public agency. NHA Advisors senior leadership can draw upon its 100+ years of experience in public finance to provide comprehensive education to the developer on these constraints.
Creating Win-Win Solutions
The financial risk for a land developer is typically concentrated at the front end of a project. Conversely, the financial risk for the public agency is typically spread over the long term. Since the time period of the risk burdens do not generally coincide, creative public finance techniques can often be used to create win-win solutions. NHA Advisors has direct experience with the full menu of public finance techniques that can be used to create these win-win solutions.
Explaining the Business Deal to Electeds and the General Public
In many cases, the process doesn’t end when an agreement is reached. The electeds must approve it; and for that to happen, the general public oftentimes needs to have a basic understanding about the project. NHA Advisors can prepare clear presentations that simplify complex P3 business deals for electeds, the media, and the general public.