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Plenary Properties Long Beach LLC (PPLB), a Plenary-led consortium, has recently announced that it has achieved financial close for the US$520 million Long Beach Civic Center public-private partnership (PPP) project in the city of Long Beach, in Southern California, on the Pacific coast of the United States.

Plenary Group is the lead developer, sole equity provider and financial arranger for PPLB consortium, which has reached financial close with the City of Long Beach and the Port of Long Beach. Other consortium members include Clark Construction, Edgemoor, Johnson Controls and Skidmore, Owings & Merrill.

The project includes the creation of a new City Hall, a new Main Library, a revitalized Lincoln Park, parking facilities, and a new headquarters for the Port of Long Beach, as well as complimentary private development in downtown Long Beach.

More concretely, the New Main Library is based on sustainable design and state-of-the art programming and interior planning. Additionally, a revitalized Lincoln Park has been designed with walkways, lighting and landscaping to create multiple activity zones and improved amenability and public safety. While the City Hall and Port headquarters are designed as separate and distinct buildings to meet their respective programming and security requirements.

The new Civic Center P3 project will be developed on a design-build-finance-operate-maintain (DBFOM)​ basis under a 40-year lease contract.

With financial close now achieved, design development and permitting will continue until construction begins at the end of June, 2016. The project is scheduled to complete the new City Hall Building, new Main Library and new Port headquarters building in June 2019.

The project will be the first social infrastructure project in the U.S. to be financed using a taxable private placement solution. Additionally, it is also the first hybrid (DBFOM) deal in North America, combining both public infrastructure and private development components within a single project. 

The City’s advisors included p3point as lead P3 financial advisor, Arup as lead advisor (including their team of HOK, BAE Urban Economics and MBI), Sheppard Mullins and KNN as municipal finance advisor.

The $513 million financing arranged by Plenary and it’s bankers HSBC and Barclays, consists of:

• $239 million approximately 43 year term private placement with Allianz

• $213 million approximately 3 year term construction loan from Sumitomo Mitsui Banking Corporation

• $21 million equity investment by Plenary, and

• Contributions of cash and land from the City of Long Beach totaling approximately $40 million in value.

Mayor Robert Garcia, commented:

“We are excited to see this deal move forward and to meet the goals set by the City three years ago when it embarked on the Civic Center P3 procurement. I’d like to congratulate and thank our City Council, City staff, our partners, and the Plenary led consortium that helped us to reach this important milestone.”

Dale Bonner, Plenary Concessions Executive Chairman, said:

 “Our success in achieving financial close is the product of the strong leadership of the City and the Port of Long Beach and the incredible dedication of the entire team.”

Stuart Marks, Long Beach Civic Center Project Director and Plenary Senior Vice President, added:

“Reaching this milestone reflects the mutual dedication and determination of the City and Port of Long Beach and Plenary’s consortium partners to keep this important project on track.”

Plenary was named the city’s exclusive negotiation partner in December of 2014. Since that time, the team has held or participated in over 100 community meetings, hosted countless discussions with various city departments and the port, and sought ways to improve upon the original proposal.

On 12 February 2013 the Long Beach City Council initiated the process when it released a Request for Qualifications (RFQ). Out of seven teams that responded to the RFQ, the City shortlisted three to respond to a more detailed Request for Proposals (RFP) issued on 28 February 2014.