Public-Private Partnerships

Public-private partnerships bring together the experience and skill of government with the innovation and efficiency of business to produce significant economic development and public service projects for communities. 

These partnerships are created through a contractual agreement between a public agency and a for-profit corporation.  Through the agreement, the partners share skills and assets to deliver a service or facility for the use of the general public.  The partnerships are intended to bring to a project greater efficiency, better access to capital, and increased intellectual resources.  They typically result in increased quality at a reasonable cost.

The Lancaster County Convention Center and the Marriott Lancaster at
Penn Square

In 2001, a public-private partnership was formed in Lancaster for the purpose of developing, designing, building, and operating a convention center and hotel.  The most important regional economic development project in decades, this project is expected to bring new hope, new jobs, and new financial strength to Lancaster City. 

The partnership joins:

       The Lancaster County Convention Center Authority.  In September 1999, the Lancaster County Convention Center Authority was formed and charged with the mission of bringing the best convention center to Lancaster.  The Convention Center Authority is directed by a volunteer board, which is appointed by Lancaster County and City governments.  The Lancaster County Convention Center Authority’s executive director is David Hixson.

       Penn Square Partners.  Penn Square Partners includes general partner Penn Square General Corporation, an affiliate of The High Companies, and limited partner Penn Square Ltd. LLC, an affiliate of Lancaster Newspapers, Inc.  Penn Square Partners was formed in February 1998 and included Fulton Bank until March of 2007. This alliance has been actively involved in furthering public discussion and consensus on the revitalization of downtown. In March 2007, limited partner Fulton Bank withdrew from Penn Square Partners in order to play a larger role in the project by purchasing $14.5 million in construction bonds. 

The partnership agreements between Penn Square Partners and the Lancaster County Convention Center Authority establish performance covenants and carefully protect the interests of the community. 
 

Components of a Successful Public-Private Partnership

The public-private partnership between the Lancaster County Convention Center Authority, RACL, and Penn Square Partners has the five critical components that the National Council for Public-Private Partnerships says are necessary for success: political leadership, public sector involvement, a well thought-out plan, effective communications with stakeholders, and the right private-sector partner.

Political Leadership.  Government leaders actively involved with the project include: Pennsylvania Governor Edward G. Rendell; Pennsylvania Senator Gib Armstrong; Pennsylvania Representative Mike Sturla; Lancaster Mayor Rick Gray; and the Lancaster City Council.

Public Sector Involvement.  Comprising leaders from various sectors of the community, the Lancaster County Convention Center Authority Board of Directors voluntarily contributes hundreds of hours to make the tough decisions necessary to bring this project to Lancaster.  The board members include: Chairman Ted Darcus; Willie J. Borden, Jr., Laura C. Douglas, Debra A. Hall, Joe Morales, Arthur Morris, and Thomas LeCrone.  In addition, the project is supported strongly by the Lancaster Chamber of Commerce and Industry, the Economic Development Company of Lancaster County, the Redevelopment Authority of the City of Lancaster, and the Parking Authority of the City of Lancaster.

Well Thought-Out Plan.  Since early 1998, Lancaster’s community and business leaders have been working together to create and implement a plan for stimulating the city’s economic revitalization.  A key component of that plan to grow downtown is the construction of a convention center and headquarters hotel.  The project is expected to:

       Create 520 to 590 construction jobs.

 

       Create 200 to 300 full-time jobs to staff the hotel and convention center.

 

       Increase Lancaster County tourism by an additional 114,000 to 147,500 visitors annually.

 

       Inject $150 million into the local economy during construction: $110 million in sales of Lancaster County-produced goods and services and $40 million in personal income.

 

       Inject $42 million per year into the local economy during operation: $31 million per year in sales of Lancaster County-produced goods and services and $11 million per year in personal income.

 

       Generate additional revenue for RACL.

The Right Private-Sector Partner.  Comprising two established and respected Lancaster-based businesses, Penn Square Partners is committed to the prosperity of this community.  These businesses employ thousands of Lancaster County residents and pump millions of dollars into the local economy.  Throughout the history of the project, Penn Square Partners has demonstrated a commitment to the goal of revitalizing downtown Lancaster.

History of Public-Private Partnerships in the United States

For more than 200 years, public-private partnerships have been used in this country to develop and renew critical infrastructure. 

The first documented public-private partnership in the United States dates back to 1652, when the Water Works Company of Boston, a private firm, agreed to provide drinking water to citizens in the community.  Today, U.S. cities work with private industry to provide, on average, about one-third of basic municipal services.