Rails to TrailsThe Maryland Department of Transportation/Maryland Transit Administration (MDOT/MTA) recently announced its selection of Purple Line Transit Partners as the concessionaire for the new 16.2 mile, 21-station, light rail Purple Line that will run through Montgomery and Prince George’s counties. On April 6, 2016, the Maryland Board of Public Works, comprised of Governor Larry Hogan, Treasurer Nancy Kopp, and Comptroller Peter Franchot, unanimously approved the public private partnership agreement with Purple Line Transit Partners.

We have been following the development of this project for several years. In 2013, Maryland identified it as the first P3 project under new legislation that updated its Public Private Partnership law to facilitate the use of P3s.

There were questions about the viability of the project in 2014 during the gubernatorial election cycle. But after taking office in January 2015, Governor Larry Hogan gave conditional approval to a reduced-cost version of the Purple Line project and outlined three criteria for approval of the project: (1) additional financial support from Montgomery and Prince George’s counties; (2) reserved federal funding; and (3) aggressive pricing from the successful team. Montgomery and Prince George’s counties pledged $330 million in cash and non-cash contributions to the project. The federal government reserved approximately $900 million for the project, with $125 million recommended for FY 2017. Finally, the initial state expenditure for construction cost was reduced by $8 million to $159.8 million, and the amount of the average annual availability payments was reduced by $18 million to $149 million per year over thirty (30) years. As a result, the project is reportedly coming in $550 million below prior estimates, and the Governor approved moving forward with the project.


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Background

In the first significant public private partnership (“P3”) infrastructure project in Pennsylvania, PennDOT recently selected Plenary Walsh Keystone Partners (“Plenary Walsh”) for award of the Rapid Bridge Replacement program. Under the P3 agreement, Plenary Walsh is required to demolish 558 bridges in various states of disrepair throughout Pennsylvania and to construct new bridges in

It is no secret within the construction industry that public-private partnership (P3) project delivery has recently become all the rage.  The demand for infrastructure repairs and improvements is high, and the public dollars needed to fund them are scarce.  P3 projects incorporating public and private funding have, therefore, become a creative delivery alternative that states

A recent case before the Appellate Division of the Superior Court of New Jersey (Morris County Improvement Authority and Somerset County Improvement Authority v. Power Partners Mastec, LLC) involving solar construction has shed light (pun intended) on the complications associated with projects that are publicly and privately owned and financed, especially with regard

The Maryland Department of Transportation/Maryland Transit Administration (MDOT/MTA) recently announced that four of the six teams that submitted qualification statements will be permitted to submit proposals to design, build, finance, operate, and maintain the Purple Line light rail public private partnership (P3) project that will run from Bethesda to New Carollton in Montgomery and Prince

In the wake of the significant transportation funding legislation passed at the end of November 2013, Pennsylvania’s Department of Transportation wasted no time issuing a request for qualifications (“RFQ“), seeking statements of qualifications from potential concessionaires to replace hundreds of structurally deficient bridges through a public private partnership (“P3”).  PennDOT has also issued

Last week, the construction law section of the American Bar Association held its annual Fall Meeting. The program, held in Washington, DC, was entitled “Capital Projects: P3s, Design-Build, and Beyond.” The ABA Forum on the Construction Industry presented a well-run, compelling program that addressed many of the complex issues involving public-private partnerships (P3s).

Speakers explored

As our readership knows, states are increasingly looking to public-private partnerships as a means of construction and development.  Maryland is one such state.  We previously reported that Maryland had revised its existing public private partnership (“P3”) law to encourage public-private project development in Maryland and address Maryland’s infrastructure needs.

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Governor Martin O’Malley has

By: Jason Tomasulo

The Maryland Legislature recently passed House Bill 560, which makes significant revisions to Maryland’s Public-Private Partnership law, effective July 1, 2013. The genesis for the revisions was the combination of Maryland’s infrastructure needs and the budgetary constraints due to the economic downturn over recent years. In 2011, the American Society of