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Making Public Private 
Partnerships Work 
November 19, 2014 
Shannon Sweeney, Associate 
David Drown Associates, Inc.
History – R/S Fiber Project…. 
2010 11 Cities and 2 Counties formed a joint powers 
board to explore the feasibility of constructing a 
fiber-to-the-farm network. 
2011 Joint Powers used funding from members and 
Blandin to explore project feasibility. 
2012 Joint Powers worked in earnest to assemble and 
finance a project. Engineering, Legal, Finance 
2013 Gave up on original structure due to changes in 
financial market conditions.
History…. 
2013 Identified alternative structure that took 
advantage of the grass roots nature of the 
project. Cooperative ownership. 
2013 - 2014 
Discussed feasibility of the units of government 
providing an economic development loan. 
2014 Now have 17 townships and 10 cities as members 
of a joint powers board proposing to issue G.O. 
Tax Abatement Bonds to fund a loan to the 
private cooperative.
Key points 
If multiple jurisdictions/partners are 
attempting to work together, make sure 
that the expectations and goals are 
similar. It is extremely expensive, time 
consuming, and frustrating when a 
project partner leaves. 
Minnesota laws regarding 
telecommunications and governmental 
finance of fiber have not kept up with 
technology.
Key points 
Tax abatement bond law currently 
provides a useful tool for local 
governments to assist private or 
governmental service providers. 
Assisting the expansion of an existing 
service provider is a far easier task than 
starting from scratch. 
A reliable source for working capital 
should be identified early on.
Suggested Legislative Changes: 
Remove ambiguity about the authority for 
cities and counties to own and operate fiber 
networks, without referendum. 
Allow cities and counties, without 
referendum, to pledge their full faith and 
credit to the payment of up to 30 percent of 
the annual debt service on bonds issued to 
finance a fiber network.
Suggested Legislative Changes: 
Allow the State to provide credit-enhancement 
for the portion of bonds issued 
by a city or county that is secured by the 
issuer’s full faith and credit.

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Making Public Private Partnerships Work by Shannon Sweeney

  • 1. Making Public Private Partnerships Work November 19, 2014 Shannon Sweeney, Associate David Drown Associates, Inc.
  • 2. History – R/S Fiber Project…. 2010 11 Cities and 2 Counties formed a joint powers board to explore the feasibility of constructing a fiber-to-the-farm network. 2011 Joint Powers used funding from members and Blandin to explore project feasibility. 2012 Joint Powers worked in earnest to assemble and finance a project. Engineering, Legal, Finance 2013 Gave up on original structure due to changes in financial market conditions.
  • 3. History…. 2013 Identified alternative structure that took advantage of the grass roots nature of the project. Cooperative ownership. 2013 - 2014 Discussed feasibility of the units of government providing an economic development loan. 2014 Now have 17 townships and 10 cities as members of a joint powers board proposing to issue G.O. Tax Abatement Bonds to fund a loan to the private cooperative.
  • 4. Key points If multiple jurisdictions/partners are attempting to work together, make sure that the expectations and goals are similar. It is extremely expensive, time consuming, and frustrating when a project partner leaves. Minnesota laws regarding telecommunications and governmental finance of fiber have not kept up with technology.
  • 5. Key points Tax abatement bond law currently provides a useful tool for local governments to assist private or governmental service providers. Assisting the expansion of an existing service provider is a far easier task than starting from scratch. A reliable source for working capital should be identified early on.
  • 6. Suggested Legislative Changes: Remove ambiguity about the authority for cities and counties to own and operate fiber networks, without referendum. Allow cities and counties, without referendum, to pledge their full faith and credit to the payment of up to 30 percent of the annual debt service on bonds issued to finance a fiber network.
  • 7. Suggested Legislative Changes: Allow the State to provide credit-enhancement for the portion of bonds issued by a city or county that is secured by the issuer’s full faith and credit.
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