Prince George’s County Public Schools becomes first K-12 district to utilize P3 concession agreement in the United States
The agreement could indicate a bellwether in how K-12 education delivers capital in the future
WASHINGTON, Jan. 11, 2021 – Prince George’s County Public Schools announced today that the first ever K-12 schools Public-Private Partnership (P3) Concession Agreement in the United States has reached financial close. The Concession agreement will accelerate the delivery of six new and urgently needed schools in Prince George’s County, Maryland. Assisting from strategy to closing, JLL served as the technical and financial advisor to Prince George’s County Public Schools (PGCPS).
Prince George’s County is rapidly growing as evidenced by increasing housing demand, job growth and economic strength over the last few years. This swift growth brings a strong need for additional K-12 schools that will meet projected enrollment numbers, in order to provide a solution for overcrowding and to modernize existing schools in safety and productivity for the long term. More than half of the county’s schools are over 50 years old.
Utilizing a P3 Concession Agreement structure, Prince George’s County Education and Community Partners (PGCECP), the design-build-finance-maintain partner, will deliver six new schools to the county by 2023. They will be responsible for the maintenance and renewal of the schools for 30 years. Upon completion of the $1.24 billion program, the schools are guaranteed 15 years of useful life remaining on all major building systems, including roofs, HVAC, electric, plumbing and so forth.
“This P3 is so special because it is a major step forward in delivering equal opportunities to the students and families of Prince George’s County,” said Bob Hunt, Managing Director, Public Institutions, JLL. “Without this agreement in place, it would take more than 15 years for these schools to get funded and built. Of the many learnings uncovered from this year’s pandemic, I think we can all agree on the pivotal role our schools and their faculties play in the lives of our children.”
The new schools will support the education of thousands of students and save the county millions of dollars in building costs and deferred maintenance.
"We must start planning for our children's future and that begins with modernizing our schools," said Dr. Monica Goldson, Chief Executive Officer, PGCPS. “As the first school district in the nation to take this approach, I look forward to implementing this innovative proposal. I know without a doubt that this critical investment will transform our school system and build the schools that our students deserve."
The partner, PGCECP, includes Fengate Capital Management Ltd. and Gilbane Development Co. Inc. leading the development, Gilbane Building Co. leading construction, Stantec leading design, and Honeywell providing maintenance services.
“With municipal budgets bearing the burden of the pandemic nationwide, these types of agreements can offer a real solution to ensure that schools can be built and maintained while providing budget certainty,” said Lindsay Stowell, Executive Vice President, Public Institutions, JLL. “Deferred maintenance can cause a domino effect on infrastructure—and one that is challenging and costly to bounce back from. This P3 eliminates that concern and promises institutional pride for many years to come.”
For more information on JLL’s Higher Education industry practice, please visit: us.jll.com/highereducation.
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