CHICAGO—The use of public-private partnerships for new development has become more popular throughout much of the US. But although the strategy can be very helpful in getting proposed projects underway, those interested will probably need expert advice, RealShare Industrial panelists in Chicago said yesterday.
“The debt side is going to be hard,” Kate Crowley, principal, Baker Tilly, said at an afternoon panel, which was moderated by David Wilson, 2018 CCIM Institute president and executive vice president, Lockard Development, Inc. Completed deals can involve “seven of eight layers” of financing, including various tax credits, TIF funds and a host of incentives. And that complex array of funding can worry some bankers. “They sometimes need a lot of education on how to do it.”
And the process can be difficult for the developers as well. “You're going to see strings attached to this funding,” said Thomas M. Boyle, principal, Transwestern. The governments which agree to funnel scarce dollars into development projects will expect, for example, a certain number of jobs to be created.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
