MIAMI—There's a gap between required infrastructure investment and available public funding. At the same time, there are pivotal infrastructure projects underway in South Florida and beyond. That's demanding a new way of thinking about public-private partnerships.
GlobeSt.com caught up with Darryl Sharpton, CEO of The Sharpton Group, to get his thoughts on the evolution of P3s and what he sees as some of the most exciting projects rising these days in part two of this exclusive interview. You can still read part one: What's Different About P3s this time around?.
GlobeSt.com: Do you think the evolution of PS3s is the standard moving forward or more of a reaction to the current climate?
Sharpton: It clearly will be a new standard as the gap between required infrastructure investment and available public funding will continue to grow over the next decade. In fact, according to the American Society of Civil Engineers, based on current investment trends in public infrastructure, the country will develop a $1.1 trillion gap between projected infrastructure funding and expenses by 2020. To make matters worse, this deficit could widen to $4.7 trillion by 2040.
GlobeSt.com: What do you feel are some of the most exciting infrastructure projects underway in South Florida today?
Sharpton: These are very interesting and exciting times in South Florida as far as infrastructure investment, particularly since there has been a very protracted delay in making the required investments even before the recession hit. Additionally, as our region continues its forward trajectory as a major world-class city, a number of major projects are underway that will make our aspirational goals a reality.
These include everything from transportation improvements such as the Miami International Airport and Fort Lauderdale Airport expansions and All Aboard Florida to improvements in our education and health systems including Jackson Memorial Hospital and Baptist Hospital. These projects are all a billion dollars and above, which I believe signals an unprecedented level of energy and commitment to our regional growth.
GlobeSt.com: What should real estate developers do before they begin assembling funding for a project?
Sharpton: The most critical thing for developers to do is to ensure their development operating assumptions are reasonable and that they have the appropriate level of community support. Without these two fundamental elements in place, they could be facing an arduous and potentially revenue draining road ahead.
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