by Durham Chamber Board Chair Bill Brian
Post-recession economic realities are forcing developers and local governments to collaborate on financing the infrastructure needed to support private real estate projects. Although some states, North Carolina being one, may present a treacherous legal landscape for such collaboration, that landscape can be traversed with courage, patience and a little good lawyering.
A number of elements have come together in the wake of the Great Recession to force local governments and real estate developers to work closely as partners in order to build projects which yield profits to both the public and the private sectors. Banks no longer are willing or able to lend money freely. Therefore, capital for development is coming from private sources. Unless an asset is guaranteed to yield substantial, private investors are not interested. Moreover, infrastructure – such as parking garages — rarely produces the necessary rates of return.
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NOTE: This article originally appeared in the May 2015 issue of ACP Construction