The project leverages a public-private partnership approach – the first of its kind for Oregon – that provides the best value, which is in line with the county’s commitment to affordability.¹

The financial package for the Design Build Finance Operate Maintain (DBFOM) project includes a construction loan, term loan and privately placed notes – and Fengate PCL Progress Partners has now reached a commercial and financial agreement. The financing structure of the Clackamas County project includes almost US$150m in medium-term bank debt along with long-term privately placed notes.² The construction loan will be paid off using the county’s milestone payments for a total of US$130m.³

The state of Oregon will play a key role in the development of the project as it will fund these payments under its matching grant programme. The project has a three-year construction period followed by a 30-year facility management period. No additional tax increases will be required.

The new 241,073 ft² courthouse for the county is necessary. The current building serves fewer than 50,000 residents, at a point when the county’s population is growing to nearly 420,000.⁴ This move also helps to mitigate earthquake risks, addresses safety concerns, security challenges, and delays in justice.⁵

“We are honored to be selected to deliver this new, safe and secure courthouse with the features and services that the growing population of Clackamas County needs,” said Mac Bell, Managing Director, Infrastructure Investments, Fengate. “We look forward to working closely with the County and bringing our team’s deep experience to design, build, finance, operate and maintain the new facility for the community.”⁶

Bianca Steer, Vice President, Infrastructure Investments at Fengate added, “We are pleased with our partnership with Deutsche Bank’s Trust and Agency Services to support our commitments in developing affordable P3 infrastructure projects.”

Brian Studdert, Head of Trust & Agency Services, Americas, Deutsche Bank said, “We are delighted to have been chosen by Fengate to serve as the collateral agent and insurance trustee for this important infrastructure project, which will help to better meet the long-term needs of Clackamas County in an affordable way.”

Fengate PCL Progress Partners is a subsidiary of Fengate, is a leading North American alternative investment manager focused on infrastructure, private equity and real estate strategies investing in long-life, high-quality assets and businesses on behalf of their clients.

Note: Photo Existing Clackamus Courthouse – source Creative Commons

Sources

¹ See fengate.com
² See ijglobal.com
³ See fengate.com
⁴ See ijglobal.com
⁵ See fengate.com
⁶ See clackamas.us