Brandenburg, Kentucky could deliver the first local government P3 under new legislation
In a courageous step, the City of Brandenburg, with the legal counsel of Frost Brown Todd (FBT), issued a request for proposal (RFP) for private companies to bid on the construction and financing of the city’s new wastewater treatment plant. This could be the first time a local government has delivered a public-private partnership (P3) since Kentucky passed the 2016 law revamping how local governments could bid for development projects. To read the full RFP, click here.
The nation’s largest Steel manufacturer, Nucor Corp, is set to build a new mill on the current site of the city’s wastewater treatment plant. Brandenburg must now move the treatment plant to a different location, which is anticipated to cost $7 to $9 million. They must also upgrade the plant to accommodate the new steel plant that will bring in 400 jobs and an expected population increase.
“After exploring all options, the city agreed a P3 offered the best opportunity,” said FBT P3 attorney Jason Halligan “While this is not a tactic we’ve seen from local governments in Kentucky, we know how beneficial it has been in other states. We look forward to helping Brandenburg set the precedent for other cities and counties in the Commonwealth.”
“Brandenburg is breaking ground, literally and figuratively,” said Steve Robertson, a principal of FBT’s public affairs subsidiary, CivicPoint. “The typical funding approach for local governments in Kentucky is going through the Kentucky Infrastructure Authority or the Rural Economic Development Loan and Grant program. That not only adds more than six months to the process and potentially more cost, but it also significantly limits a city’s options. We were able to write this RFP to allow respondents to offer any combination of design, build, finance and operating possibilities. Brandenburg Mayor Ronnie Joyner and the City Council can then choose what works best for the community.
There is a pre-proposal meeting and site visit March 16. All proposals are due April 17.
CivicPoint LLC, a subsidiary of Frost Brown Todd, is a full-service public affairs firm that helps businesses, trade associations, and other organizations navigate the public policy process effectively in Kentucky, Indiana, Ohio, Tennessee, Texas and West Virginia. CivicPoint provides all aspects of government relations, from launching major initiatives to procurement, executive branch lobbying, and strategic public affairs counsel. For more information, visit civic-point.com.