NDC Public- Private Partnership - National Development Council

NDC Public-Private
Partnership Financing
The Center for Urban Waters Interior
With decades of successful experience in
financing and community development,
NDC has forged a unique form of publicprivate
partnerships that has resulted in over
$2.0 billion in projects for local governments
and non-profit and public institutions.
NDC’s public-private partnerships marry
a rigorous public selection and oversight
process with tax-exempt financing vehicles,
501(c)(3) bonds and 63-20 bonds, named
for the IRS rulings which permit them. The result?
The efficiency and speed of private development in
combination with public accountability in building,
owning and operating public and municipal facilities
including city halls, office and research facilities,
parking garages, infrastructure and student housing.
“The public-private partnership
successfully delivered the project.
Leveraging the private sector expertise
of the developer and contractor
delivered a 13% reduction in overall
cost per square foot over initial project
estimates, savings which funded project
enhancements and improved building
efficiency for tenants.“
- King County Final Oversight Report on the
Ninth and Jefferson Building
By creating special purpose non-profit corporations
through NDC’s development arm, NDC Housing
and Economic Development Corporation (HEDC),
NDC is able to issue 501(c)(3) and 63-20 bonds on
behalf of a local government or non-profit or public
institution. Once built, the project is leased to the
public or non-profit entity until the bonds are retired,
when the building is transferred at little or no
cost to that entity. Add to that the streamlined
and collaborative development process, which
preserves the public input and oversight
components characteristic of public sector
development, and the result is a facility that can
cost between 10 and 30 percent less than one built
through typical public sector processes.
NDC’S model
provides that:
• All facilities are transferred to public
ownership at no additional cost to
the public
• All excess income after operating
costs and appropriate reserves, is
used for public purposes
• Construction and development risk
are transferred from the public
entity to the developer, who
oversees the architect and contractor
• Public interest in the asset is
preserved through a structure that
gives the public a decisive role in
key decisions affecting the property
Chinook Building
Redmond City Hall
King Street Center