By Steve Hymon, February 27, 2014
As the name implies, public-private partnerships are financial agreements between public agencies and private companies. There are several variations of PPPs but generally speaking it means a private firm fronts some of the money to build a project and then is paid back later, sometimes from revenues created by the project.
Metro has a PPP program that has already identified five big projects that might make for good PPPs — the Sepulveda Pass Transit Corridor (which could involve building a rail line under the Pass to connect the Westside and the San Fernando Valley, a very pricey idea), the High Desert Corridor, the 710 South and 710 North projects and a project that would construct congestion pricing lanes on the 5 freeway in the Santa Clarita area. But no deals have been finalized.
It’s hard to discuss PPPs without mentioning what’s happening in the Denver metro area, where voters in 2004 approved a sales tax increase to fund a big transit expansion. A PPP is being used there to build some of the commuter rail projects — including the 22-mile line that will connect downtown Denver and Denver International Airport.
Sound familiar? It should. Both Antonovich and Garcetti have made repeated public statements about the importance of connecting Metro Rail to LAX via the Airport Metro Connector project — a project that will likely need funding beyond the scope of Measure R to be fully realized.