Commercial and Financial Close Reached for Prince George's County Public Schools Alternative Construction Financing Project
Fengate Asset Management, Gilbane Development Company,
Gilbane Building Company, Stantec and Honeywell Consortium Partners announce creation of endowed fund to support scholarships, internships, mentoring and apprenticeships
PRINCE GEORGE'S COUNTY, Md., Jan. 11, 2021 /PRNewswire/ - Prince George's County Public Schools (PGCPS) and Prince George's County Education & Community Partners (PGCECP) are pleased to announce commercial and financial close on the alternative construction financing project to design, build, finance and maintain six public schools in Prince George's County, Maryland, making it the first jurisdiction in the nation to partner with the private sector to bundle a multi-school delivery program, one which will deliver these critical community assets by 2023.
The PGCECP consortium selected for this project comprises:
- Developer: Fengate Asset Management (Fengate) and Gilbane Development Company
- Design-Build Contractor: Gilbane Building Company
- Designer & Architect of Record: Stantec
- Services Provider: Honeywell International Inc.
Formally known as the Blueprint Schools, the agreement between PGCPS and the lead member of PGCECP was finalized in mid-December. The project, an innovative approach to address aging facilities, will create six new schools by July 2023. Through the initiative that supports approximately 8,000 students, PGCECP will design, build, finance and maintain the new Drew-Freeman, Hyattsville, Kenmoor and Walker Mill Middle Schools, as well as a new middle school and K-8 school in the Adelphi and southern areas of the county. This pioneering delivery approach is the first of its kind for a U.S. public school system and is designed to build new schools faster, cutting the delivery time in half with lower construction costs and preventative maintenance.
Following commercial and financial close, PGCPS and PGCECP together announced the creation of a $1 million endowed fund supporting scholarships, student internships, mentoring opportunities and apprenticeships valued at $4.7 million, as part of the school system's Alternative Construction Finance Program.
Other community benefits include the guaranteed procurement of at least 30 percent of total eligible costs of the program to minority-owned businesses, community-based enterprises and community-based small businesses that will serve as a much-needed economic stimulus. In addition, approximately $174 million in savings is expected in deferred maintenance and construction costs, compared to a traditional construction procurement model.
"It is vital that we continuously invest in our students' future and today's announcement will allow us to do just that," said Dr. Monica Goldson, Chief Executive Officer. "Throughout this process, Prince George's County Public Schools has remained committed to our goal of supporting our students at every stage of their educational experience, ensuring they have every tool needed for success. We cannot afford to wait another 10 years to provide our students, teachers and communities with new state-of-the-art facilities. I look forward to working with Prince George's County Education & Community Partners to complete an investment that is long overdue."
"We are pleased to have reached commercial and financial close on this critical project and to be a part of the new scholarship, internships and apprenticeships program announced today," said Mac Bell, Managing Director, Infrastructure Investments, Fengate. "We are honored to partner with PGCPS to deliver this much-needed infrastructure for Prince George's County and its students, and we are committed to ensuring the benefits of this project extend beyond the buildings, in support of student development and community businesses through the endowment fund and work and training opportunities."
"This is an important step toward realizing new critical school improvements for Prince George's County while offering new educational resources to support its students," said Darin Early, Managing Director, Public Private Partnerships, Gilbane Development Company and Principal-in-Charge, Prince George's County Education & Community Partners. "Gilbane Development Company and Gilbane Building Company are honored to be a part of this innovative partnership that will modernize schools for 8,000 students while driving local participation and apprenticeship opportunities, and boosting economic inclusion."
"Having built schools in the state of Maryland for more than 25 years, we know how transformational they can be to a community and we look forward to this impactful collaboration with Prince George's County Public Schools," said Paul J. Choquette, III, Executive Vice President, Gilbane Building Company. "Our partnership will support economic inclusion for the county while we build vital new schools for the community."
"This critical milestone allows us to now focus on the design and construction of education spaces that will meet the growing needs of the community," said Laura Sachtleben, Education Sector Leader for Stantec. "We are honored to be designing these new schools which will offer innovative learning environments through small and large group instruction and peer-to-peer engagement while helping students discover their skills and interests."
"Honeywell is proud to be a part of this effort to not only create and service new schools but also build learning opportunities in the Prince George's County community," said Keith Fisher, vice president and general manager of Services for Honeywell Building Technologies. "As the services partner for this effort, we understand the unique needs of the education sector and the need to keep buildings in prime condition to foster and enhance the learning environment."
For additional details, please visit https://www.pgcps.org/newsroom. For more information on the PGCPS Blueprint Schools initiative, visit pgcpsblueprintschools.com.
About Fengate
Fengate is a leading alternative investment manager focused on infrastructure, private equity and real estate strategies. With offices in Toronto and Oakville, Ontario, and Houston, Texas, Fengate is one of the most active real asset investors in North America and the firm has been investing in and developing public-private partnerships and infrastructure across North America since 2006. Learn more at www.fengate.com
About Gilbane
Gilbane, Inc., a private holding company marking its 150th year in business, is one of the oldest and largest family-owned construction, investment and real estate development firms in the world. Gilbane Development Company is the project development, financing and ownership arm of Gilbane, providing a full slate of real estate development and property management services. Gilbane Building Company is a full-service construction services firm providing preconstruction, general contracting, construction management, and design-build services on some of the nation's most complex projects. Gilbane's Public Private Partnership Group has delivered or has underway more than $3 billion in P3 projects for healthcare, higher education, K-12 schools, and federal/state/municipal clients. To learn more, visit www.gilbaneco.com.
About Stantec
Communities are fundamental. Whether around the corner or across the globe, they provide a foundation, a sense of place and of belonging. That's why at Stantec, we always design with community in mind. We care about the communities we serve—because they're our communities too. This allows us to assess what's needed and connect our expertise, to appreciate nuances and envision what's never been considered, to bring together diverse perspectives so we can collaborate toward a shared success. We're designers, engineers, scientists, and project managers, innovating together at the intersection of community, creativity, and client relationships. Balancing these priorities results in projects that advance the quality of life in communities across the globe. Stantec trades on the TSX and the NYSE under the symbol STN. Visit us at www.stantec.com or find us on social media.
About Honeywell
Honeywell (www.honeywell.com) is a Fortune 100 technology company that delivers industry specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.
SOURCE Fengate Asset Management
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