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Municipality redevelops city center through $100 million public-private partnership

Public-private partnership

In 2014, the City of Royal Oak in Michigan began working with a developer on a public-private partnership (P3) for a $100 million redevelopment program of their existing downtown facilities and site. To replace aging city hall and police facilities, address additional parking needs, and create tax-generating corporate office space, the P3 planned to develop a vibrant City Center Complex in the current surface lots downtown. Once the new facilities were constructed, the City could develop a new city park to benefit the community and entice visitors to the downtown.

Before the City and the developer moved the project forward, Plante Moran Realpoint's (PMR), formerly Plante Moran Cresa's, reputation as a knowledgeable development advisor for municipalities led the City Commission to engage our team to conduct a feasibility assessment related to the proposed P3 development.

Development feasibility & planning

The development agreement had preliminary drawings and space programs along with high-level cost scheduling and modeling for the program. PMR reviewed the drawings, comparing the cost to industry standards and completing advanced financial modeling to confirm that the investment made financial sense. Our team also evaluated the space programming for each building, ran additional financial models for alternative space options, and helped the City think through “lease versus own” considerations. During the capital planning phase, we helped align the redevelopment program to Royal Oak’s financial goals and objectives, resulting in $10 million dollars in savings.

Program management & owner’s representative

After providing Royal Oak with a tremendous amount of value in the capital planning process, the city decided to leverage PMR's owner’s representation services to assist in bringing the multiphase program to life. Throughout the design and construction process, PMR assisted the city in managing the risk, schedule, and budgets associated with the program. After completion, the project won the 2022 CREW Impact Award for new construction.

Project highlights

  • New 140,000-square-foot office tower
  • New parking deck, with about 580 parking spaces
  • New 32,000-square-foot City Hall
  • New 43,000-square-foot police station
  • Development of a city park
  • Development of the connectivity sites

If your city is considering a large development through public-private partnerships, a development advisor can help manage risk and set the project up for success. Contact our exerts today for help.

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