Rickenbacker Causeway needs fixes. Don’t let misinformation derail county bid process
The word “privatization” is being misused by naysayers to describe a potential Public Private Partnership (P3) that would address critical upgrades and repairs to the Rickenbacker Causeway.
How quickly we forget that P3s offer private financing to deliver public infrastructure projects and keep taxes low! MiamiDade County and the state of Florida have been national leaders in the successful use of P3s.
First off, let’s start with using the correct language for the Rickenbacker project. Miami-Dade County’s
Rickenbacker Requests For Proposals (RFP) is not a privatization effort — rather, it is a solicitation for a P3 that is consistent with state statutes and county code. These rules have been developed and vetted through public hearings to address the need for a timely and cost-effective design, construction, improvement and renovation of public infrastructure for which there are insufficient public resources. The rules explicitly require that a P3 demonstrates that it can meet the public needs by lowering costs and expediting the completion of said project.
NOT PRIVATIZATION
Privatization implies the outright conveyance or sale of a public service or facility to the private sector — a scenario that does not apply to the Rickenbacker RFP. In fact, nowhere in the county’s Rickenbacker
RFP does the word privatization appear because it is not a privatization, but rather a partnership. Under the P3 format, the private partner plays the role of financier, builder and operator while the county retains ownership and oversight responsibility.
The PortMiami tunnel is an example of a successful P3 project right here in Miami-Dade County. The $903-million project was completed on time and within budget. To achieve these results, the private firm selected to bring this project to life receives ongoing payments over the life of the agreement to cover its capital investment, operational costs and on-going maintenance.
The P3 model used for the tunnel mitigated the taxpayers’ exposure to potential risks, accelerated construction and leveraged additional state funding to complete this necessary project. We have received national recognition for this marvelous piece of infrastructure that takes thousands of cars off downtown Miami roads, supports 176,000 jobs and keeps Miami’s port competitive.
IT’S MISINFORMATION
The county is currently considering this same successful P3 model to make critical improvements to the Rickenbacker Causeway. Unfortunately, there has been misinformation about the county’s Rickenbacker Causeway RFP spread primarily by those on a quest to control a roadway that serves our entire community. A few mistruths warrant clarification:
As a P3, private capital would be used to finance, build and operate the causeway much sooner and more efficiently than projects funded solely with government funds — allowing the community to derive tremendous benefit from critical structural and safety improvements with no property tax burden.
The private partner will not have the unilateral authority to establish or increase toll rates — these fees are set by the county before construction can ever proceed. Once a contract is established and approved by the Board of County Commissioners, the partner would be required to collect tolls to fund its construction, operations and maintenance obligations.
The selected private firm will assume any cost overruns — taxpayers, residents, commuters and local businesses will not be affected.
If a Rickenbacker Causeway P3 were to come to fruition, the county could also stand to benefit from the new bipartisan infrastructure bill working its way through Congress.
The bill increases private activity bonds for surface transportation projects, a central tool for P3 projects that lowers the need for additional private financing.
The Rickenbacker Causeway is arguably one of the most valuable county assets, and yet is also in need of critical safety, resiliency and recreational upgrades. The county’s RFP for the Rickenbacker ensures a competitively bid process, significant public engagement and the use of private dollars to benefit the greater community.
County leaders should not let misunderstanding and misinformation sway them from their responsibility to county residents and the millions of visitors who drive our economy. Let’s continue advancing the Rickenbacker Causeway RFP — we all stand to benefit!