Project Evaluation for Public-Private Partnerships

By Phillips, Patricia; Scott, Robert et al. | Government Finance Review, June 2004 | Go to article overview

Project Evaluation for Public-Private Partnerships


Phillips, Patricia, Scott, Robert, Leavitt, Nancy, Government Finance Review


Aligning Development with Strategic Goals in Virginia Beach

GFOA's newly formed Committee on Economic Development and Capital Planning is working to identify policies and guidelines for local governments to use in evaluating when and how to invest in economic development projects, including public-private partnerships. The Committee recognizes that many localities are currently investing in economic development projects without necessarily tying these projects into any overall plan. This article presents a case study for investing in economic development, using the City of Virginia Beach as an example of how adopted guidelines can be used by local governments to effectively evaluate development projects.

VIRGINIA BEACH: A CITY INTRANSITION

Virginia Beach is located in the southeastern portion of the Commonwealth of Virginia. The city was established in 1963 through a merger of the resort town of Virginia Beach and Princess Anne County. It is the most populous city in Virginia, with a 2000 U.S. Census population of 425,257 (estimated at 428,200 as of July 1, 2003).

Adjusted for inflation, per capita income in the city was basically flat in the late 1980s and early to mid-1990s. During that period, the city's per capita income gradually lost ground to the state, falling below the average for Virginia municipalities by the year 2000. The slow-growing per capita income was reflected in the modest growth of the city's tax base during the same period. Virginia localities rely primarily on the property tax and cannot add new revenue sources without approval from the state. This approval is not easy to come by, and property tax increases are always very unpopular. As such, the city pays close attention to the growth of its tax base and its ability to support increasing demand for local services.

The City Council was concerned about the direction these statistics seemed to be pointing. The Council envisions Virginia Beach as a "community for a lifetime"-a place where all people in the community can prosper, and graduates of area high schools, colleges, and universities do not have to go elsewhere to find meaningful work. This requires a thriving business environment. As such, the City Council began targeting its economic development efforts toward business retention and expansion and job creation. It soon became evident that the city needed written guidelines to guide its evaluation of an ever-increasing number of economic development projects.

As Virginia Beach continues its transition from a growing city to a mature city, it faces the challenge of meeting demands for new and expanded services-demands that cannot be satisfied by the current tax base. Additionally, the Comprehensive Plan, adopted by the City Council in 2003, calls for the retention of land in the southern part of the city for agricultural use and open space, and thus for the prudent and productive use of land in the north. The plan accentuates the need to steer tax base-expanding growth to specific areas of the city in ways that market forces alone cannot accomplish. This objective will require the combined legal, financial, and entrepreneurial resources of both the public and private sectors. In some cases, it will require the combined resources of different entities within the public sector. One excellent way to achieve this objective is by engaging in public-private partnerships.

A public-private partnership is the investment of a locality's capital and other resources, leveraged with those of a private entity or another public entity, to achieve a significant public benefit that could not otherwise be achieved.1 Virginia Beach has entered into or has contemplated a number of public-private partnerships over the last several years. These partnerships have produced community assets that would not have been possible otherwise.

While these projects have taken several different forms-including golf courses, an amphitheater, and a parking garage, to name just a few-they were all the product of a joint effort of the City of Virginia Beach and one or more private or public entities (Exhibit 1 summarizes some of the most common forms of public-private partnerships).

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Project Evaluation for Public-Private Partnerships
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.