PGCPS Will Build 6 New Schools With $900M Of Private Money

PRINCE GEORGE'S COUNTY, MD — Aging facilities continue to plague Prince George's County Public Schools. The Board of Education took a step toward fixing that problem Wednesday evening, approving a plan to build six new schools through a public-private partnership.

The $900 million deal calls for a private developer to finance the construction and maintenance of the buildings. The school board will repay the builder over 30 years.

PGCPS will assume ownership of the schools after it pays off the loan. Until then, the private partner will own the buildings.

"Something special happens when a new school building opens its doors," school system CEO Monica Goldson said in a Thursday press release. "This investment will provide our students with a quality education within the walls of modernized and new state of the art facilities. "

The public-private partnership, also known as P3 or Alternative Construction Finance, worries many county residents. They fear its price tag and budgetary implications.

Goldson tried to clear the air monday evening during a telephone town hall with Prince George's County Executive Angela Alsobrooks. The CEO told callers that the county is not asking for more money nor is it requesting additional taxes to fund the project.

The board's vote for P3 set aside, or earmarked, some of the money that is already in the school system's budget. That means the board committed $30 million-per-year to the school payments.

The school system will withdraw the money from its $211 million annual construction allotment, called the capital budget. The funding will not come from the school system's $2 billion operational budget that pays teachers and everyday expenses.

Goldson attempted to calm parents by comparing the contract to a 30-year mortgage. Most school builders demand payment upfront, but the P3 plan does not require that initial investment.

The county may also save money with the contract's upkeep agreement. Because the developers will handle maintenance during the repayment period, the board expects to save $174 million compared to traditional financing.

Goldson sees the investment as a common sense solution to failing infrastructure. The schools slated for replacement range in age from 47 to 82 years old. More than half of PGCPS's 207 schools are older than 50.

"We have to do better than that," Goldson said Monday, noting that most schools last about half a century. "While we can’t modernize every building, this is a start."

P3 will bring new facilities to Adelphi, Capitol Heights, Hyattsville and Landover, replacing these schools:

PGCPS's maintenance backlog extends even further. The school system projects that it will need an extra $8.5 billion to modernize facilities over the next 20 years. Alsobrooks thinks this signals that students need better resources.

"They do deserve to attend schools worthy of their dignities," the county executive said. "The decisions that we make today speak boldly about the value that we place on our children."

PGCPS has about 132,000 students, and enrollment is on the rise. The potential new schools would grow the system's capacity by 8,000 students.

Some students are taking notice of the unique public-private partnership, which the county says is the first in the nation.

The deal is a sign of hope for Suitland High School senior Roland Polite, who endorsed P3 during the town hall. He wishes students were included more often in decisions like this.

"They talk about us," Polite said. "They never really talk with us."

Construction will begin after the final details are ironed out by January of 2021. The buildings should open by July of 2023. Goldson says this turnaround is far faster than most other school builds, which can sometimes take more than a decade.

PGCPS will not pay builders until at least half the project is completed. The value of the contract will diminish if the schools open late. Officials say these safeguards should help construction finish on time.

Crews call themselves the Prince George’s County Education and Community Partners. The following companies will supply workers:

• Fengate Asset Management: Developer
• Gilbane Development Company: Developer
• Gilbane Building Company: Design Build Contractor
• Stantec: Designer and Architect
• Honeywell: Services Provider

Alsobrooks says the project will bring more than 3,000 jobs to Prince George's County. She touted the economic benefits of the project in a Monday Op-Ed for The Washington Post. She writes that 30 percent of P3's budget will pay local or minority-owned businesses.

"Prince George’s parents and our community have been waiting decades for new schools," she wrote. "It’s time the county delivers."

The Board of Education okayed P3 by an 11 to 1 vote with one abstention.

RELATED:

• PGCPS May Replace 6 Schools, Leaders Make Final Push Before Vote
• Prince George's School Construction P3 Plan Draws Backlash Before Board Vote

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