Lake Worth Beach City Commission Work Session — Public Private Partnerships — January 27th, 2020.

Jim Gilmore, the managing partner with Gilmore Hagan Partners spoke to the Lake Worth Beach City Commission in a work session this past Monday.

The dais. L to R, City Clerk, the five electeds all in attendance, City Attorney and City Manager:

At the end of this blog post is the City’s YouTube video of last Monday’s City Commission work session.

What follows is brief summary.

Mr. Gilmore was brought in to explain and discuss a process called a Public Private Partnership (P3). The firm consults with communities that wish to pursue such ventures. He defined P3s as “The close collaboration of a public entity and a private entity to structure, negotiate and implement the finance, design, development, construction and operation of buildings.” Buildings in this context include commercial, residential parking, and governmental facilities.

Mr. Gilmore’s bon mot for the evening: Winning takes longer than losing. In order for P3s to be successful there has to be trust on the side of both parties for a win-win outcome. He stressed that communication with the public is a strategic must in the process. He also stressed the importance of having milestones throughout the P3 process so progress can be monitored closely. Any monetary participation which induced the private entity to participate must come after the project is completed, including the certificate of occupancy. Gilmore referenced the IPIC DELRAY in Delray Beach; while up and running the project was sold and flipped to another entity. He warned that the public sector partner needs to plan for certain “what if ” scenarios.

Another local project he pointed to was the Riviera Beach Marina Village. They issued a Request for Proposals in 2018 and the project is coming to completion. The unique part of Marina Village is that they were able to take two respondents that came in independently and put them in a partnership with each other.

Mr. Gilmore identified the beach property in Lake Worth Beach as one that would be very attractive to private sector participation through a concession agreement, that is leasing to a private entity rather than selling land. He noted, “They aren’t making any beachfront property like that any more.” He also saw opportunities throughout the downtown especially in areas governed by the Lake Worth Beach Community Redevelopment Agency.

During the Q&A session with the City Commission it was Commissioner Herman Robinson who pointed out that $6M has been pledged for a project at the beach on a 3-2 vote. That decision was a sometimes acrimonious and very public political process and he warned that outcome may change over time. Any private partner would have to trust the $6M for improvements at the oceanfront park was a firm commitment. Mayor Pam Triolo pointed out she is aware of League of Cities activities nationwide and knows of many P3 success stories and advised there are right ways and wrong ways to go about them. She referenced the Invitation To Negotiate process at the beach which took place years ago was a very public failure. Mr. Gilmore responded that it is best to know who in the private sector is ready to participate in the P3 process rather than going on a “fishing expedition” through the Request For Proposal (RFP) process.

Commissioner Omari Hardy pointed out the beach is an amenity the City sends money to and doesn’t get money back. He pointed to the loan the City made to itself to build the Casino building, a loan that is still being paid down. He wondered aloud if all the benefits from the public beach property are being realized.

Educating residents about what is possible in the P3 process is an important step. Many times those in the public that don’t want things to change are the very same ones who demand better and higher quality City services. The mayor commented she is interested in P3s beyond the beach property and possibly be a tool used throughout the downtown and other areas in the City. Vice Mayor Andy Amoroso emphasized the importance of the downtown to the City’s image and economy. Amoroso wants the downtown to be less seasonal and not just focus all the attention on the beach.

This public discussion is taking place now because the City has a ballot item on the March 17th municipal election that, if passed, would allow the City to lease city-owned property for a 30-year term rather than the current limit of 20 years. Consensus of the City Commission was to proceed with information gathering related to the market and possible private sector participants.

After the upcoming election in March there will be more certainty as to the wishes of the public and direction going forward when it comes to length of leases for public property.

Without further ado. . .

This YouTube video is a little over one hour and twenty minutes and provides much information about P3s. Mayor Triolo starts it off by saying, “City manager, would you like to take it away. . .”: