A financing package involving a public-private partnership, also called a P3, for the $513 million Long Beach Civic Center rebuild project reached commercial and financial close on April 20, according to an announcement released by p3point, which served as the lead P3 financial advisor to the City of Long Beach.


The P3 project was approved by the Long Beach City Council on December 15 and includes constructing a new city hall, port headquarters, main library and Lincoln Park, along with new commercial and residential development.


The financing package, arranged by project development team Plenary-Edgemoor Civic Partners (PECP) and HSBC bankers, includes $239 million in private placement financing in a 43-year term with Allianz, a $213 million construction loan in a three-year term from Sumitomo Mitsui Banking Corp., a $21 million equity investment by PECP, and contributions of cash and land from the City of Long Beach totaling approximately $40 million, according to the announcement.


“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,” said Long Beach Mayor Robert Garcia in the statement. “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.”


Michael Conway, director of economic and property development for the City of Long Beach, stated that the P3 method was selected for the project since it enabled the city to procure a new civic center without having to issue bonds or raise taxes. He added that there have been more than 100 outreach sessions on the project so far.


“This method also facilitated design and operational innovation from the P3 developers, provided a high level of 40-year life cycle maintenance for the new civic center, and integrated significantly increased private real estate development of the downtown area through the city’s contribution of land,” Conway said.


On a related matter, at its meeting on April 19, the city council approved findings and determinations regarding contracting with PECP for custodial, maintenance and security services usually performed by city employees.