Public/Private Partnerships On Hold, Legal Fees Up To $230,000
Tuesday, May 13, 2008 - 11:28 AM Updated: 01:21 PM
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RALEIGH, N.C. -- Wake schools do not want to move forward with a public/private partnership in the building of the new school E-25. Because that elementary school in Wake Forest was put on hold and construction funds reassigned to the renovation efforts of Wake Forest Rolesville High School, the board reviewed the partnership plans.
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"During Tuesday's facilities committee, staff reported that the number of companies competing for the partnership was down to one," said Mike Burris, assistant superintendent for facilities.
Balfour Beatty, the remaining development team under consideration, proposed a transaction substantially different from the earlier one that includes shifting greater risks to the board for the contraction and payment for buildings.
Those discussions and delays bumped legal fees from the previously agreed amount of $25-50 thousand to the $230,000.
"Other districts including Cumberland county and Charlotte/Mecklenburg have halted discussions on public/private partnerships,” said Mike Burris, facilities assistant superintendent. “Legal fees in Charlotte/Mech reached $1 million."
Staff requested action to stop pursuing the partnership and incurring legal fees.
"In all the meetings we have attended, no one has told us that this is a money saving proposition," Horace Tart, facilities committee chair.
Under recent General Assembly authorization, the board was pursuing private/public partnerships with the understanding that money could be saved.
The board agreed to have Rosa Gill, board chair, and Beverly Clark, vice chair, to meet with Kilpatrick Stockton to review legal fees.
The board determined that they can't officially halt the private/public partnership without discussion with commissioners. This item is being added to the joint meeting with commissioners on May 21.
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