TaxWatch spotlights private investment in infrastructure FINANCIAL REVIEW

Florida TaxWatch released “Using Public-Private Partnerships and Public-Public Partnerships to Meet the Growing Demands for Public Infrastructure,” a report highlighting the opportunity for increased private sector investment in Florida’s critical public infrastructure. FTW also outlined recommendations for facilitating such investment, drawing from well-planned and successfully executed infrastructure-related public-private partnerships and public-public partnerships in Florida and other states.

Florida TaxWatch President and CEO Dominic M. Calabro said, “Florida’s population has been rapidly increasing and will continue growing at a steady pace, placing considerable demands on our public infrastructure in the years ahead. When compounded by resiliency risks, rising sea levels, and more frequent and intense coastal storms, the state will need additional funds to build and maintain everything from roads and bridges to airports and seaports to wastewater treatment plants. With public funding constraints often slowing project starts, the focus can now shift to private sector investment, a vehicle to accelerate much needed local projects.

“In particular, public-private partnerships and public-public partnerships – where a non-government entity shares the financial risks for a project in the public interest – can go a long way in helping meet future infrastructure needs, as they have been shown to lower project costs, improve the schedule for delivery and provide other public benefits, while also fostering job creation, economic development and competition.

“To that end, Florida TaxWatch presents this www.swfloridabusinesstoday.com

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“In particular, public-private partnerships and public-public partnerships – where a non-government entity shares the financial risks for a project in the public interest – can go a long way in helping meet future infrastructure needs.”

— Dominic M. Calabro, Florida TaxWatch President and CEO

comprehensive research to encourage policymakers to address the hurdles in Florida law that often deter or prevent private entities from engaging in these infrastructure-related projects, and we stand ready to assist the Florida Legislature in efforts that will allow for the quick and straightforward implementation of such proposals – of course, while still maintaining transparency, accountability and taxpayer value.”

According to FTW, the gap between Florida’s infrastructure needs and the state’s current funding is nearly $2.59 trillion over 10 years. By 2039, a continued underinvestment in Florida’s infrastructure at current rates will have serious economic consequences, including $10 trillion in lost Gross Domestic Product, more than 3 million lost jobs, and $2.4 trillion in lost exports, which will cost the average Florida household $3,300 a year.

While the Florida Legislature has acknowledged the need for private investment in infrastructure, FTW identifies PPPs and PUPs as specific solutions. PPPs are contractual arrangements between public and private sector partners that typically involve a government or public agency contracting with a private entity to perform functions normally undertaken by a public agency, with the agency remain- ing ultimately responsible for the public function. PUPs are collaborations between two or more public entities, such as a public authority or nonprofit organization, to pool their resources to provide or improve public services, and unlike PPPs, neither partner in a PUP expects to earn a profit from the collaboration – the goal is to improve efficiency and lower the costs.

FTW asserts by shifting responsibility for the construction, long-term operation, and/or maintenance to a non-government entity, these projects provide a powerful incentive to ensure quality construction, since the private partner will share the financial risk, thereby enabling the public partner to focus on the outcome-based public value they are trying to create.

Finally, due to the slow pace of government procurement, FTW believes there should be legislative effort to “fast track” infrastructure proposals wherein a non-government entity shares the financial risks for the project and the project proves to be in the public interest. To accomplish this goal, FTW provides six recommendations for the Florida Legislature’s consideration, ranging from amendments to Florida Statutes to creating an Office of Infrastructure Investment that reports to the governor.

From college to the Cattyshack Cafe

Receiving the Soaring Eagle Award has been a surreal experience for Andrew Townsend.

“I’m blown away by it,” the Fort Myers resident said. “I knew I was nominated, but I also am very aware that there are a lot of other successful people in business and management positions who’ve graduated from FGCU and received the award. I’m very humbled by it. I’m very grateful. I think it’s one of the biggest accomplishments of my life and I’m very proud of it.”

...is what keeps you and your

Townsend co-owns the Cattyshack Café in Gulf Coast Town Center. The business serves coffee, pastries, beer and wine, but the main attraction is the opportunity to commune with adoptable cats and kittens in a separate room. He partnered with Gulf Coast Humane Society to help more than 1,000 rescue cats find homes in just the last year.

Cattyshack General Manager Maureen McLaughlin nominated Townsend for the award, crediting him with starting a business to help the Southwest Florida community, including partnering with other area businesses.

“He works hard to ensure the business thrives every day and has made waves even beyond Fort Myers,” she added. “Gulf Coast Humane Society has pulled shelter cats from as far as Orlando and Sebring to bring to Cattyshack to find better lives. In just a few months Andrew’s business has exceeded expectations and I am sure he will continue to do so.”