When the government and a private company partner together to finance and create projects, this collaboration is known as a public-private partnership. The opportunity to have public-private partnerships helps some projects to become a reality in much less time. Within the agreement between the private company and government agency, often trade-offs are made with respect to taxes and liability and private partners are able to profit from the venture. Essentially, private funding allows large government projects to be established.
If you are considering a large infrastructure project in California, building a community health center, a senior living community, or another building project, the Los Angeles real estate acquisition attorneys at the Leiva Law Firm can help.
Types of Public-Private Partnerships
Transportation infrastructure projects are a common type of public-private partnership. These projects would include the design, funding, and building of highways or bridges, and they can also be for airports and railroads. Municipal infrastructure projects can also be developed through the use of PPP. Wastewater facilities would be a good example of this type of undertaking. Public service spaces are yet still, another advantageous result of PPP. Schools or sports arenas would fall into this category.
As with any business relationship, there are advantages and risks to public-private partnerships. The expedient nature of PPP takes full advantage of the innovation that the private sector brings to the table which is motivated by the public sector incentives made available. The merging of the private sector with the public sector allows for increased infrastructure and construction projects and overall economic diversity that ultimately has benefits for the public in the country as a whole.
The downside of these relationships for the private sector is that there could be issues with the delivery of projects on time and meeting standards. Additionally, projects may come in at a higher cost than initially projected. Despite the advantages the public may receive from a PPP, there are also disadvantages residents may encounter. The public may be subject to paying increased fees or tolls for certain services because of the need for using them. Toll roads are a prime example of where this can happen. Also, if the public sustains harm or losses from a PPP project they may be unable to hold any entity accountable for their experience using a substandard service or facility.
Regardless of the pros and cons of PPP, the government frequently makes use of them because they are a suitable way to secure financing for sizeable projects.
Speak with a Los Angeles Real Estate Acquisition Attorney Today
Acquiring real estate for a large project in Los Angeles can be a complicated task. In many situations, unexpected issues can come about during the process. With the help of a resourceful and experienced legal team, you can feel assured your transaction can go more smoothly and that potential hurdles can be managed efficiently. For more information about real estate acquisitions in California, the Los Angeles business attorney at the Leiva Law Firm offers assistance. To schedule a free consultation to discuss your intended project, please call (818) 519-4465 today. The legal team at Leiva Law looks forward to helping you turn your plan into a reality.