Gilbane’s Public-Private Partnership (P3) team achieved remarkable milestones in 2023. As Executive Vice President and leader of Gilbane Development Company’s P3 team, I am delighted with the significant progress made on our existing projects and the new opportunities our team explored nationwide across diverse sectors and asset categories within the social infrastructure domain. Our team continues to cultivate lasting relationships with our clients and industry partners. Despite challenging market conditions in 2023, specifically interest rates, Gilbane’s financial strength, resource accessibility, and creative problem-solving enabled us to make significant progress in our key P3 collaborations.
Our innovative and adaptable approach is a testament to Gilbane’s commitment to building long-term relationships with our partners. By providing finance, design-build services, and long-term operations and maintenance solutions, we’ve solidified our position as a P3 market leader that delivers a unique turnkey design-build-finance-operate-maintain (“DBFOM”) model.
I want to share what trends we can expect to see in the market in 2024 and provide an update for several of our P3 projects and team highlights.
2024 P3 Forecast
The outlook for Public-Private Partnerships (P3) in 2024 is optimistic, with the private sector expected to play a significant role in infrastructure development and maintenance. The reports put out by Global Projects View1 highlight that P3s are becoming increasingly popular in the United States, with numerous state governments passing legislation to encourage their use. The reports also note that P3s can help reduce the burden on public finances while also providing opportunities for private-sector investment and innovation2.
P3s can provide several benefits, including:
- faster project completion and reduced delays on infrastructure projects,
- innovative design and financing approaches,
- risks being fully appraised early on to determine project feasibility,
- operational and project execution risks being transferred from the government to the private participant,
- increased efficiency of the government’s investment,
- retirement of deferred maintenance, and
- long-term budget certainty.
The Infrastructure Finance Team at KeyBanc Capital Markets has published an interest rate forecast for the year ahead. The report provides insights into the expected changes in interest rates and their impact on the economy. Read the full report here. 2
Gilbane Public-Private Partnership Project Highlights 2023
Ribbon Cutting for Prince George’s County Public Schools “Blueprint Schools” Phase I
Prince George’s County Public Schools welcomed students to six new schools for the 2023-2024 school year. The schools were delivered by Prince George’s County Education & Community Partners (“PGCECP”), a team comprised of Fengate and Gilbane Development Company as developers, Gilbane Building Company as design-builder, Stantec as designer and architect of record, and Honeywell as services provider. The schools included Drew-Freeman Middle School, Hyattsville Middle School, Kenmoor Middle School, Sonia Sotomayor Middle School at Adelphi, Walker Mill Middle School, and Colin Powell K-8 Academy, collectively serving 8,000 students. The project exceeded local economic and inclusion goals through diverse and local business engagement by awarding 34.8 percent of contracts ($140 million) to Minority Business Enterprises (MBEs), including $65 million awarded to MBE County-Based Businesses.
The team’s community impact included a $1 million endowed fund to support students and educators, $60,000 in scholarships to 30 Prince George’s Community College students, and scholarship(s) through Honeywell starting at operations. The PGCECP team also provided local PTA support for fundraising for coats, books, food drives, and community volunteer activities during the development.
Gilbane is proud to have been a partner in this exciting first-in-the-nation alternative financing model project. Watch the ribbon-cutting celebration here.
Phase 1 of Eastern Michigan University – Welcome Home EMU Plan Opened in Fall 2023 and Phase 2 is Underway
Gilbane and Eastern Michigan University (“EMU”) celebrated the successful completion of Phase 1 of the “Welcome Home EMU” campaign in the Fall of 2023. The project provided much-needed building renovations and system modernizations for three iconic residence halls – Downing Hall, Putnam Hall, and Walton Hall, which were transformed and now provide students with contemporary living and social spaces and updated technology. Phase 2 is in development and scheduled for Fall 2024 occupancy. It includes bringing online 700 new beds at Lakeview and Westview apartments and renovations to the remaining residence halls on campus.
Gilbane was selected as the master developer and is responsible for project financing, design-build, and operations and maintenance (O&M) of the University’s $212 million Welcome Home residential housing transformation. In less than four years, Gilbane will construct two new residential apartments with 700 beds, renovate and modernize multiple residence halls totaling 2,500 beds, and retire outdated ones. Additionally, the University has entered a 50-year partnership to modernize its central utility systems and improve sustainability on campus, which Gilbane will oversee.
The project team includes Gilbane Development Company as developer with Gilbane Building Company, Michigan-based Clark Construction Company, and AVB, Inc. as design-builders. Progressive AE and Mackey Mitchell Architects are serving as architects of record, with minority-owned Moody Nolan as associate design architect. Progressive is also serving as engineer for the new construction projects, with IMEG as engineer of record for renovation projects.
Click the video below to learn more about Eastern Michigan University – Welcome Home EMU Phase 1 Completion from our P3 team.
Next Wave Rhode Island Partners selected by Rhode Island Public Transit Authority for New Downtown Transit Center
The Rhode Island Public Transit Authority (RIPTA) has selected Next Wave Rhode Island Partners, a consortium comprised of several Rhode Island-based companies, to design and construct a new downtown transit center in Providence. The project will be a mixed-use development that will include an enclosed intermodal transit center and RIPTA administrative offices, as well as an adjacent mixed-use, transit-oriented development. Features will include a 27,000-SF indoor intermodal facility and 36,000-SF ground-floor bus berth space. The transit center will also feature a state-of-the-art passenger arrival and seating area with passenger amenities, RIPTA office space, and multi-modal accommodations for bicyclists. Additionally, the project is envisioned to include a multistory, mixed-use development, with first-floor retail and affordable housing residential space on the upper floors.
Next Wave Rhode Island Partners is a consortium consisting of Gilbane Development Company, Gilbane Building Company, Marsella Development, Plenary Americas, CUBE 3, and Jacobs. Gilbane and our Next Wave Partners team were chosen based on our proven track record in successfully executing the progressive P3 model and our longstanding, productive relationships in Rhode Island. Our intricate understanding of the project, developed through Gilbane’s continued involvement since its previous iteration in 2015, played a crucial role in RIPTA selecting our team.
Design of the University of South Carolina (USC) Health Sciences Campus School of Medicine Approved
The University of South Carolina’s (“USC”) board of trustees approved plans for a new Health Sciences Campus on December 19th, 2023, advancing the project to the next step. Construction is expected to begin in 2025 and be completed in 2027.
The Health Sciences Campus is a new $300M development project that aims to transform healthcare education in South Carolina. The campus will be located in the BullStreet District development and will be constructed on 16 acres of land. The campus will be home to the School of Medicine and Associated Health Sciences Research and will feature interactive teaching, library, and conference spaces along with a café and research support functions. The first building is being sited with a forward-looking mindset for how the campus will grow to include future health science-related programs and research.
The project is being developed, designed, and constructed by a collaborative team led by Gilbane Development Company, with Restoration 52 as the development consultant; Gilbane Building Company, Cumming, and Brownstone Construction Group as design-builders; BOUDREAUX as lead designer collaborating with SLAM; and Honeywell as the operations and maintenance provider.
Learn more about the project here.
Kickoff ‘Illuminate Idaho 2028’ – University of Idaho
Gilbane Development Company, along with partner Rocky Mountain Companies (“RMC”), will lead a groundbreaking partnership with The University of Idaho for ‘Illuminate Idaho 2028’, a portfolio of projects executed by Auxiliary Services to improve the student experience and employee quality of life on campus. This new public-private partnership will provide a significant upgrade and expansion of campus housing and support spaces for students, faculty, staff, and University-affiliated individuals.
This strategic investment aims to bolster the University’s reputation for recruiting and retaining top academic talent by providing modern, value-driven housing options. The multi-project housing program will create live-learn communities, foster student welfare, and contribute to a vibrant campus experience, enhancing the University’s competitive position in higher education.
Gilbane/RMC will oversee the design, construction/renovation, financing, operations, and maintenance of various housing facilities, working closely with the University. The phased program will start with the construction of a new community layout of South Hill and the renovation of the Wallace Residence Center and Theopolis Tower, followed by additional projects to be completed by the end of 2028. The program’s total economic impact could exceed one billion dollars for the local Moscow community and the surrounding region.
Construction Kickoff at William H. Gray III 30th Street Station Redevelopment Project
The Redevelopment of William H. Gray III 30th Street Station was a project that encountered both successes and hurdles throughout 2023. The year saw the finalization of major reprogramming and rescheduling efforts associated with Amtrak’s new way to work. The design-build team, led by Gilbane, worked collaboratively with Amtrak to realize this new vision. Gilbane ultimately continued with design development and achieved Owner approval of 100% of Design Documents on 50% of the overall project. This true design-build integrated approach allowed for ongoing procurement efforts, detailed pre-planning, and the eventual commencement of construction activities at year’s end. By embracing the flexibility of the design-build model, Gilbane navigated this large and complex project throughout all phases of the development process within a compressed timeframe. The project serves as a shining example of what can be achieved when a team is committed to a common goal and works together to overcome challenges.
To kick off the construction activities for this transformative project, the team held a construction kickoff celebration to commemorate this major milestone at Gray 30th Street Station.
Notable P3 Awards and Recognition
I was thrilled to be in New York City on October 26, 2023 for the P3 Awards event where Gilbane’s P3 team clinched multiple top honors. The team’s remarkable achievements include winning the Environment, Social, and Governance (ESG) of the Year Award and the Best Education and Higher Education Project Award for their outstanding work on the Eastern Michigan University “Welcome Home EMU” Initiative. The William H. Gray III 30th Street Station Redevelopment Project earned Best Social Infrastructure Project. Earlier that day, Michael Crase, Vice President, Public-Private Partnerships (P3), was recognized by the Association for the Improvement of American Infrastructure (AIAI) as an ambassador for the organization. These prestigious recognitions underscore Gilbane’s commitment to excellence in public-private partnerships and its significant impact on critical social infrastructure projects across the country. We are grateful to our teams and partners and look forward to continuing to deliver innovative and impactful solutions for our communities.
P3 Conferences/Meetings
Gilbane’s P3 thought leaders attended the inaugural Public-Private Partnerships (P3) Council meeting3 in Atlanta, Georgia as attendees and industry experts came together with elected officials to discuss future opportunities, challenges, and best practices for public-private partnerships in the country. Gilbane’s P3 teams were also able to make meaningful connections and share their expertise at several P3 conferences throughout the country this year. Many of our experts were panelists and moderators leading discussions and sharing their expertise in effective P3 models, legal frameworks, and best practices for infrastructure development in the P3 world.
- Denniston, K. K., Taunton, J. M., & Urban, K.-M. (2023, August 24). P3 State Legislation Update and Opportunities for the Private Sector. Global Projects View. Retrieved from here ↩︎
- KBCM Infrastructure Financial Market Update – November 2023. Gilbane Development Company. Retrieved from here ↩︎
- Denniston, K. K., Taunton, J. M., & Urban, K.-M. (2023, October 4). Nation’s Mayors & Business Leaders Discuss Future Opportunities at Inaugural Public-Private Partnerships (P3) Council Meeting. Global Projects View. Retrieved from here ↩︎
