Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
MARCH 19, 2026
Preamble
Motion by:
DIRECTORS DUTRA, SANDOVAL, NAJARIAN, HORVATH, YAROSLAVSKY AND DUPONT-WALKER
Public-Private Partnerships (P3) to Support Revenue Generation Motion
At the Board Budget Workshop held in early March, staff presented a range of innovative financing concepts and Public-Private Partnership (P3) approaches as potential tools to address projected capital and operating funding gaps, manage delivery risk, and enhance long-term financial sustainability. The discussion underscored both the potential opportunities and the complexities associated with alternative delivery and financing models, as well as the need for disciplined, project-specific evaluation before advancing any procurement strategy.
Metro continues to steward one of the largest capital programs in the country at a time of escalating construction costs, market volatility, and evolving private financing conditions. While federal, state, and voter-approved local revenues remain foundational, the Board has expressed interest in understanding whether and where innovative financing tools, including P3 models, may responsibly supplement traditional approaches.
P3s are not new sources of revenue and are not appropriate for all projects. However, when structured carefully, they may provide mechanisms to accelerate project delivery, allocate risk strategically, leverage private sector expertise and capital, incentivize lifecycle performance, and integrate joint development, value capture, concessions, community benefits, and other value-creation strategies.
As follow-up to the Workshop and to provide clear policy direction, the Board has the opportunity to seriously consider P3 delivery models for projects that could effectively incorporate innovative private sector financing components, and clarify its interest in P3 strategies.
Subject
SUBJECT: PUBLIC-PRIVATE PARTNERSHIPS (P3) TO SUPPORT REVENUE GENERATION MOTION
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