Welcome back to the Sunstone Way.
A couple of weeks ago, I received one of those envelopes in the mail that make you stop and say, “uh-oh” – a jury duty summons.
To be honest, I look forward to doing my civic duty when I get one of these. It is part of making our community a better place.
I admit that it does have a tendency to mess with the schedule of meetings, events and such, though.
This time around, I was summoned to the courthouse for a day of waiting to see if I would be serving on a jury. I got lucky – I was called to the Governor George Deukmejian Courthouse in downtown Long Beach.
A Public Gem
This amazing courthouse is unique not just in the state, but in the country. It was the first-ever major civic building in the United States to be designed, built and maintained through a public-private partnership (P3).
The Los Angeles Superior Court opened the building in 2013, and the fact it is as lovely, and functional, today as it was the day it opened is testament to the value of this approach to public infrastructure. I was blown away by the cleanliness, beauty and efficiency of this very important building.
This edifice replaced a decrepit 11-story tower that was literally a danger to the public. But the need for a replacement became critical (a ruling it was in danger of collapse if an earthquake hit) in the middle of an economic crisis where the state didn’t have the resources to pay for a $490 million project.
The answer turned out to be a consortium formed to design, finance, build and maintain a new courthouse, with the government paying the group back over time – 35 years in this case.
Outside The Box
In a financial climate where traditional government bond financing was difficult and potentially risky, state officials looked to explore alternatives. A request for proposals that included private financing was released, and a consortium of firms responded with something originally called Performance-Based Infrastructure – a new type of public-private partnership.
Using this approach, the entire burden of upfront financing was shifted to the private sector in return for a 35-year payback agreement. That agreement included a component where the consortium was responsible for maintenance and repairs through the life of the agreement. A clause in the deal charged a penalty whenever any portion of the building was unusable for two hours or more, providing strong incentive to both build responsibly and maintain proactively.
But it had to be designed and built first. The design-build part of the project cost about $343 million; the total development cost ratcheted up to $490 million. The city of Long Beach got involved with a land swap to provide the six acres of prime real estate – part of the new Civic Center sits on what once was the old courthouse site.
From the Ground Up
The courthouse is L-shaped with five stories on one leg and four on the other. Twenty-four courtrooms occupy the five-story section while offices are on the other leg. There are 180 detention cells underground – a critical component for a Superior Court.
AECOM served as architect and engineer for Long Beach Judicial Partners LLC and can take credit for the most striking building component – a five-story atrium in the center courtyard including a one-acre serenity garden. The low-rise, horizontal layout was deemed more conducive to moving people through the building, and was a welcome change from the 11-story predecessor, where elevators and escalators malfunctioned frequently.
Clark Construction acted as primary contractor, and started structural steel work in December 2011. The doors were ready to open in August 2013. The job was finished early and under the original budget.
A state evaluation showed the Long Beach courthouse was delivered nearly two years faster than the comparable San Bernardino Justice Center, built with traditional government procedures. And the state didn’t pay a dime until the doors opened in Long Beach, ready to go to work. Today, the “rent” is about $50 million a year.
Personal Connection
One of the principals driving the new Deukmejian Courthouse project was Jeff Fullerton. Working for Edgemoor Infrastructure & Real Estate, Jeff provided several different development services, including lease negotiations, offsite improvements, and community relations.
Jeff’s expertise and the lessons learned while bringing the courthouse project home no doubt made a difference when Edgemoor formed another partnership to take on the even larger Long Beach Civic Center – a new City Hall, new Main Library, new Port headquarters and a refurbished park, along with all the infrastructure needed to operate the complex.
That’s where Jeff and I worked together; I was on the edges rather than smack in the middle of the project like Jeff, but we had plenty of opportunities to talk about the advantages of public-private partnerships. Today, we are partners in a firm we call P3 Partners LLC, looking to help governments of all shapes and sizes take advantage of this innovative approach to infrastructure needs.
It’s our goal to help make our community a better place to live – just as the Deukmejian Courthouse and the Long Beach Civic Center did. That is, after all, the Sunstone Way.
Remember, always be a Sunstone!
John Keisler
CEO & Managing Partner
Sunstone Management, Inc.
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