Highlights:
Unlocking the value of public assets to fund critical social infrastructure.
Client Goals:
Travis County sought to monetize a prime 1.7-acre block in downtown Austin at its highest and best use following a failed bond referendum to build a new courts facility at this site. The County aimed to offset costs to construct a new courts facility while returning a prime downtown parcel to the tax assessment roll and strengthen the local economy.
Hayat Brown Role:
Analysis
Hayat Brown team members first conducted a market analysis to determine the optimal mix of uses based on market demand and determined the potential value of the site under its highest and best use. To prepare for a developer solicitation, we then assessed both traditional and Public-Private Partnerships (P3) capitalization structures and the associated project delivery methods to determine which structure would generate the highest value with a minimum level of risk to the local government.
Transaction structuring
Because there was a desire to maintain public ownership of a centrally-located downtown block, our team evaluated the cost to the County of both fee simple and long-term ground lease structures to preserve County ownership of land.
Partner Selection and Negotiation
Our team developed an RFP process that sought both fee simple and long-term ground lease offers, ultimately attracting eight (8) local and national development teams with competitive offers. We evaluated proposals, with a primary focus on the County’s goals, financial capability of the offerors, financial value offered, and worker protection and supported the County’s evaluation committee to make a recommendation to the County Court. Following developer selection, our team led negotiations of Exclusive Negotiating Agreement and Ground Lease
Project Outcomes:
