Newly Released Report Highlights Untapped Potential of Cities' and States' Aging Public Assets

NEW YORK, July 11, 2017 /PRNewswire-USNewswire/ -- A new report, Unlocking Value from Public Assets – Leveraging Private-Sector Expertise to Generate New Public Benefits, takes lessons learned from some of the most successful recent public-private collaborations to provide a blueprint for creating new public benefits and generating revenue using existing assets. The report, authored and published by HR&A, was made possible through sponsorship from RBC Capital Markets, a premier global investment bank that provides focused expertise in banking, finance and capital markets to corporations, institutional investors and governments around the world.

By identifying the efficiencies and innovation of the private sector, state and local governments across the country are repurposing dated or underutilized public assets to meet new public needs while generating new revenue and saving on costs.

The report highlights five collaborations between public institutions and the private sector that have been particularly successful in harnessing the previously untapped value of existing assets.

In collaboration with CityBridge, the City of New York has transformed its footprint of dated payphones with LinkNYC. These 7,500 communication hubs, "Links," will provide critical digital connectivity for the city's residents at no cost to taxpayers, and have the added benefit of desirable advertising space.

The report also examines a partnership between The Ohio State University and Ohio State Energy Partners (OSEP), a consortium of ENGIE North America and Axium Infrastructure. This innovative partnership will generate investments for the University's endowment and sustainability initiatives, including over $1 billion in upfront contributions.

On demand transportation providers like Uber and Lyft are improving services for riders while lowering costs for the Massachusetts Bay Transportation Authority (MBTA) through a pilot program that supplements the MBTA's existing On-Demand Paratransit system.

The Oregon Department of Transportation is finding new ways to utilize previously unused portions of state highways. Rights of ways have been transformed into "solar highways" made possible through a power-purchase agreement with Portland General Electric. The result has been cost savings for the state of Oregon and clean energy feeding into the energy grid.

Partnerships like that between the Educational Advancement Fund, Inc. (EAF), a joint venture of DePaul University, Columbia College and Roosevelt University, and private housing operators will allow the EAF's three university partners to retain high quality housing for students and redirect financial resources toward core academic objectives.

"RBC Capital Markets aims to be a constructive participant in the national infrastructure funding discussion, in part by highlighting case studies where more is being done with existing resources," said Chris Hamel, Head, Municipal Finance, RBC Capital Markets. "Underinvestment in infrastructure is an urgent issue, but the only answer doesn't have to be increased costs to the public although that may very well be necessary as well. By leveraging new technologies and the efficiencies of the private sector, part of the infrastructure funding challenge can be addressed within existing public resources. "

"In a time of funding and political constraints, finding alternative means to unlock value from non-core public assets is vital to maintaining community needs and improving quality of life. The public sector must look to the private sector for innovative ideas and specialized expertise to achieve this goal," said Shuprotim Bhaumik, Partner, HR&A Advisors.

"Public private partnerships create platforms for civic innovation. With LinkNYC, we are replacing outdated infrastructure and delivering valuable public services completely for free thanks to our unique advertising model, while generating hundreds of millions of dollars for the City of New York. It's a win-win, bringing super-fast free Wi-Fi and services to city streets and helping millions of New Yorkers and visitors stay connected at no cost to users or taxpayers," said Jen Hensley, General Manager of LinkNYC.

"Innovation has always been a hallmark of New York City. For the de Blasio administration, that includes thoughtfully repurposing our own infrastructure to ensure we're providing New Yorkers with the 21^st century services they need—while reinforcing the city's status as the greatest global city in which to live, work, and play," said Stanley Shor, Assistant Commissioner, Franchise Administration, Department of Information Technology & Telecommunications. "LinkNYC does all of this—at no cost to taxpayers. We're proud to be building the largest, fastest free municipal wi-fi network in the world."

"Our innovative energy partnership will strengthen The Ohio State University's position as an international leader in sustainability and generate resources for our core academic mission. We utilize smart, public-private partnerships to transform non-core assets to bolster our work as a leading national research institution and incubator for innovation," said Geoffrey Chatas, Senior Vice President and Chief Financial Officer, The Ohio State University.

"The Education Advancement Fund and its member institutions are committed to providing a high quality of service at the University Center of Chicago, our student housing complex. By engaging the private sector, we will continue to improve this facility and our university partners will be able to direct more financial resources into their core academic needs," said Jeff Bethke, Executive Vice President, DePaul University and President, Educational Advancement Fund, Inc. 

"Innovative public-private partnerships like the MBTA's with Uber and Lyft help breathe new life into the organization and help us achieve our one overriding purpose: to improve system reliability and performance for our riders," said Ben Schutzman, Director of Transportation Innovation, Massachusetts Bay Transportation Authority. "In cases like this where they also help reduce the cost to serve customers, they become opportunities we must explore."

About RBC Capital Markets
RBC Capital Markets is a premier global investment bank providing expertise in banking, finance and capital markets to corporations, institutional investors, asset managers and governments around the world. We serve clients from 70 offices in 15 countries across North America, the UK, Europe and the Asia-Pacific region. Our more than 7,400 professionals deliver the experience and insights required to raise capital, access markets, mitigate risk and acquire or dispose of assets for clients worldwide. We are consistently ranked, by third-party sources, among the 10 largest and most significant investment banks globally.

RBC Capital Markets is part of a leading, diversified provider of financial services, Royal Bank of Canada (RBC). Operating since 1869, RBC is one of the largest banks in the world and the fifth largest in North America, as measured by market capitalization. With a strong capital base and consistent financial performance, RBC is among a small group of highly rated global banks.

About HR&A Advisors
HR&A Advisors, Inc. (HR&A) is an industry-leading real estate, economic development and energy efficiency consulting firm. It has provided strategic advisory services for some of the most complex mixed-use, neighborhood, downtown, campus, and regional development projects across North America and abroad since 1976. Its consultants understand the importance of linking accretive private investment with public resources to support investors and communities' responsibilities and aspirations. From Brooklyn to London, Cincinnati to Hong Kong, the firm has guided hundreds of clients in transforming real estate and economic development concepts, and public infrastructure, first into actionable plans then into job producing, community-strengthening assets. HR&A has offices in New York, Los Angeles, and Washington, DC.

To view the report click here: https://www.rbccm.com/en/insights/story.page?dcr=templatedata/article/insights/data/2017/06/unlocking_value_from_public_assets_leveraging_private-sector_expertise_to_generate_new_public_benefits

SOURCE RBC Capital Markets

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