The city of Long Beach sought to replace its aging and seismically unsafe civic center through a public-private partnership (P3). The existing civic center was inefficient, had extremely high operating costs, and needed over $685 per square foot in retrofits. Through a design-build-finance-operate-maintain agreement over 40 years, the selected developer will construct a new city hall, library, and parks, redevelop excess land, and bring the port headquarters downtown. A consortium led by Plenary Infrastructure was chosen to redevelop the 15-acre civic center site and unlock value through a master planned development including a hotel, residences, and commercial space. The $513 million project will provide modern civic facilities while

1. Innovations in Urban Infrastructure Financing
New Long Beach Civic Center
Jorge Valenzuela
May 9, 2016

2. New Long Beach Civic Center
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City Rationale for P3
o Existing Civic Center:
 Seismically unsafe
 Inefficient use of downtown land
 Extremely high operating costs
o Seismic studies indicated a need for
upgrades on the order of $685/SF for
retrofits
o Relocation options limited for seat of
government and required NSF
o Design Bid Build (DBB) presents
unwanted risk in path to new facilities
o Fasted path to seismic safety required

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Executive summary
Old Courthouse (demo) Existing Public LibraryExisting City Hall
Police Department Garage
15 acres
(60,703 m2)
Lincoln Park

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City RFP
o Design, Build, Finance, Operate & Maintain
(DBFOM) a new Civic Center for up to 40
years:
o New City Hall ~26,000 m2
o New Library ~9,000 m2 minimum
o Revitalize Lincoln Park ~20,000 m2 (5
acres)
o Keep annual operating cost at $12.6M (2013$)
o Design a masterplan for the redevelopment of
the excess land and monetize the site
development potential
o Bring the Port Headquarters downtown
~22,000 m2

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Partner Evaluation and Selection
o 6 month process yielded 2 well-informed
proposals
o Proposals received have the potential to
meet the City’s stated goals and unlock
value in the City’s downtown assets while
achieving wider economic and social
development goals
o The PECP team was selected to negotiate
with the City
o 12-month exclusive negotiation
o Commercial and financial close in April
2016
PECP Developer Consortium
• Plenary
• Edgemoor
• Clark
• SOM
• Gustafson, Guthrie Nichol
• Norton Rose Fulbright
• Barclays
• Johnson Controls
Financial Close $ million
Equity $21
Allianz Debt $237
SMBC $213
City $12
City Land $30
Total $513

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New Long Beach Civic Center PPP
o Design, Build, Finance, Operate & Maintain for 40 years (plus ~4.7 years of
construction):
o New City Hall 276,000 sf (25,600 m2)
o New Library 93,000 sf (8,700 m2)
o Redevelopment of Lincoln Park 213,000 sf (19,800 m2)
o Demolition of the old city hall and library
o Design, Build, Finance of:
o New Port Headquarters 242,000 sf (22,000 m2)
o Underground parking 274,000 sf (25,000 m2)
o Masterplan for the redevelopment of the excess land (old City Hall):
o ~200-room hotel
o ~600 residential units
o Monetization (sell or rent) of the excess land

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Executive summary
Image: Plenary-Edgemoor Civic Partners

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Project Rendering – Aerial looking South

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Night View from Ocean Blvd at Magnolia Ave

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Main Library from Broadway Ave at Pacific Ave

11. Jorge Valenzuela
Arup | Transaction Advice
560 Mission Street Suite 700 San Francisco CA 94105 USA
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