Posted on July 14, 2010 by Chris Cheatham

Public-Private Partnerships Support Green Building

States are facing significant budget gaps.  These budget gaps are going to negatively affect the green building industry.  States looking to shore up budgets will cut new construction and maintenance of existing buildings in the coming years.  

But there is a solution: public-private partnerships. 
 
Just prior to the economic downturn, the phrase "public-private partnerships" - or P3s - was on the tip of everyone's tongue.  Then the Great Recession hit, and billions of dollars were injected into the economy via the American Recovery and Reinvestment Act (ARRA).  Suddenly, states were flush with cash to pay for infrastructure projects and seemed to forget about P3s.  However, the ARRA funding is running out and states will be looking for innovative ways to finance new construction and major rehabilitations of existing buildings.  

P3s are the answer.  What is a P3?  According to the National Association of Public-Private Partnerships:
"A Public-Private Partnership (PPP) is a contractual agreement between a public agency (federal, state or local) and a private sector entity. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, each party shares in the risks and rewards potential in the delivery of the service and/or facility."
The classic example is a toll booth that is either constructed, maintained or operated by a private entity in exchange for some of the toll revenues.  

National Nuclear Security AdministrationBut P3 practices are also being used for green building projects.  For example, the General Services Administration recently entered into a P3 lease agreement for a new campus to house the National Nuclear Security Administration's Kansas City manufacturing operations, which are seeking LEED Gold certification:

"The Heartland Region of the General Services Administration on Monday signed the final lease agreement with CenterPoint Zimmer LLC for a new campus to house the National Nuclear Security Administration’s Kansas City manufacturing operations. . . .

CenterPoint Zimmer, a subsidiary of CenterPoint Property Trust of Oak Brook, Ill., will receive annual rent of $61.5 million through the 20-year lease for a total contract amount of $1.23 billion.  Stephen Stanberry, the GSA contracting officer who worked on the lease, said it is a “net of utilities” leasing, meaning the NNSA will pay its own utility costs.

In return for the NNSA lease payments, CenterPoint Zimmer will develop the new campus. . . ."

My friends at J.E. Dunn will be constructing the project.

If you have questions about P3s, please let me know and I will do my best to address them in future posts.

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Posted on March 26, 2010 by Chris Cheatham

JE Dunn Achieves LEED Gold Headquarters

As long time readers know, I am originally from Kansas. While green buildings have been common in DC for some time, the Midwest is just now starting to develop its own green building market.  I was extremely excited to get an opportunity to tour one of the newest green buildings in Kansas City.  

Tim Dunn at JE Dunn Construction, one of the largest construction companies in the Midwest, recently showed me around the firm's green headquarters.  At the time of my tour in December 2009, the construction team was anxiously awaiting word from the United States Green Building Council (USGBC) regarding its application for LEED Gold certification.  Last week JE Dunn announced the building successfully achieved Gold certification and Tim was kind enough to send me some photographs.  

One of my favorite components of the building is the exposed concrete.  The building feels like it should be the headquarters of a modern construction company.  

But here's why the new LEED-certified building really makes sense for JE Dunn:  

"JE Dunn used its headquarters, which it describes as the first LEED Gold certified corporate headquarters in the city, to demonstrate its green building practices and standards."  

I often hear the same question from contractors and subcontractors:  how do I break into the green building industry?  One option is to build your own green building to demonstrate your expertise.  If you can't afford to build a new building, why not demonstrate some retrofitting techniques on your existing building?  When clients come in, show off your green components.  

How else can a contractor demonstrate its commitment to the green building industry?  

Related Links:

JE Dunn Construction headquarters gets LEED Gold certification (KC Biz Journal)

JE Dunn Construction (JE Dunn)

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