PROJECT SUMMARY
The Arizona Game and Fish Department (AGFD) Headquarters facility was completed in December of 2007. When the Game and Fish Department wanted to build the new headquarters, it did not have the capital funding to finance the project on its own, and State of Arizona capital improvement budgets were very limited. What the department did have was land ownership and an annual cash-flow that was guaranteed by fees generated by the sale of Federal gun permits and licenses, State lottery proceeds, and other sources. No annual legislative approval is required for this department cash-flow, which made the project very attractive to private funding sources. Its existing headquarters was housed in a dozen different aging structures located on their Greenway Campus, leading to inefficiencies in process, administration, operations and energy. The Arizona Game and Fish Department employed a creative public-private partnership to help finance and manage the construction of its new headquarters in Phoenix, a forward-thinking project constructed on 25 acres.

The project was financed through the use of tax-exempt bonds on a privatized lease-to-own basis. This creative financing vehicle dramatically lowered occupancy and operations costs for the Department. The building also is registered under LEED for New Construction, and received Platinum certification, the highest level possible with the most stringent environmental standards.

PROJECT OBJECTIVES
One of the main purposes of the project was to consolidate the old dispersed facilities that previously made up the Department’s headquarters. Prior to its move in November 2007, the campus consisted of 14 modular buildings and trailers located in northern Phoenix. The idea was to bring all the disparate offices together at one location to improve communication and services.

Now the Arizona Game & Fish Department Headquarters is a campus of three buildings totaling 117,452 square feet, which also provides parking for 536 vehicles. The main administrative building is a single story, 82,154-square-foot office building. The site contains a warehouse/laboratory facility of 26,648 square feet and a vehicle maintenance facility of 8,650 square feet. With a new consolidated facility, the Department is able to capitalize on enhanced security, synergy and communication between the different offices.

Also, the Department, given its authority and jurisdiction related to the environment, was highly sensitive to developing the headquarters in a manner that required low water use and high energy efficiency. In developing this project to be a sustainable building, the project team focused on minimizing impacts to the environment and energy requirements. The building was oriented to minimize summer heat gain and maximize the use of natural daylight and views of the surrounding desert and mountains. Onsite solar energy production, high efficiency mechanical systems, high performance glazing and an Energy Star highly insulated foam roof minimizes the amount of electricity required to operate the building. Water conservation was achieved by using natural landscaping that requires no irrigation after one year, along with low flow and waterless bathroom fixtures. The team also focused on the occupants of the building by using low VOC (volatile organic compounds) paints, low VOC adhesives, and all cleaning products were Green Seal approved. The other project materials and features include integral color split face concrete masonry units (CMU), sunshades over all windows, a circular rotunda housing the Department’s customer service functions and a memorial garden with a scenic view of the surrounding mountains to provide a place of respite to honor Department employees who have died in the line of duty.

PROJECT DESCRIPTION
Partners
There were several players involved in the partnership, each bringing a certain expertise to the table. The Arizona Wildlife Finance Corporation (AWFC) is the private financial organization that was set-up to own the $20.9 million facility for the 25-year agreement. This organization was responsible for selecting a general contractor and a property developer for the project. Partners in the project included a private developer (Lincoln Property Company), an architect and designer (Will Architects), a financier (Piper Jaffray), a general contractor (Sundt), and a LEED consultant (Green Ideas).

Implementation Environment–Legislative and Administrative
The Arizona Game and Fish Department employed a creative public/private partnership to help finance and manage the construction of its new headquarters in Phoenix, a very forward-thinking project constructed on 25 acres adjacent to its Ben Avery Shooting Range. When the Game and Fish Department wanted to build the new headquarters, it did not have the capital funding to finance the project on its own and State of Arizona capital improvement budgets were limited. What the department did have was land ownership and an annual cash-flow that was guaranteed by fees generated by the sale of Federal gun permits and licenses, State lottery proceeds and other sources. No annual legislative approval is required for this department cash-flow which made the project very attractive to private funding sources. Its existing headquarters was housed in a dozen different aging structures located on their Greenway Campus leading to inefficiencies of process, administration, operations and energy. The new site effectively pulled many resources together for the Arizona Game and Fish Department making this project easier to gain stakeholder support and board approval.

Financial Agreement
The project was financed through the use of tax-exempt bonds on a privatized lease-to-own basis. This public-private partnership utilized 100% Loan-To-Value Tax Exempt bond financing. The Privatized Lease-to-Own structure provided a 4.63% interest rate over 25 years. The land is owned by the Arizona Game & Fish and designated specifically for their use, creating a very cost effective foundation for the property. Generating onsite power from solar panels significantly reduced utility costs and increased the energy efficiency for the department. By utilizing this bond structure they were able to dramatically lower the long-term occupancy and operation costs while achieving LEED Platinum Certification.

Contract Provisions
The Arizona Game and Fish Department employed a creative public/private partnership to help finance and manage the construction of its new headquarters in Phoenix. The Arizona Wildlife Finance Corporation (AWFC), a private financial organization was established to own the facility, selected Sundt to build the $20.9 million facility. Lincoln Property Co., an independent property developer, secured private market financing for the project and will manage and maintain the property for the 25 years. At the end of the 25-year term, ownership of the facility is transferred from AWFC to the Arizona Game and Fish Department. The partnership allowed the Game and Fish department to take advantage of the best aspects of the private market system, and it proved to be an efficient way to create a state-of-the-art, environmentally friendly facility that will serve the department for many years to come.

Implementation Metrics
Completing a successful public-private partnership project like the new Arizona Game and Fish Department (AGFD) headquarters requires the efforts of many different individuals representing all the partners. These partners must plan around the stated goals, seek innovative solutions, and then execute the plans while staying flexible and adaptive to evolving project circumstances. To achieve this, metrics are created based upon the goals and serve as a baseline reference. The partners in this project were tasked with accomplishing many specific goals, including: meeting the Governor’s Executive Order 2005-05, bringing many Arizona Game and Fish Department offices under one roof, expanding the services of headquarters and enabling this site to serve the public well into the future. These were achieved through the collaborative efforts of many individuals representing the various partners, including the Arizona Game and Fish Department, Lincoln Property, Sundt, Will Architects, the Arizona Wildlife Finance Corporation, as well as Green Ideas. Rising to the challenge, the new AGFD headquarters was built to exceed the departments’ goals and needs while supporting future growth.

One achievement that was necessary for this project under the Governor’s Executive Order 2005-05 was that new state-funded buildings must receive LEED Silver certification at minimum and derive at least 10% of their energy from renewable sources. Every effort was made to accomplish this goal. Specifically, Sundt used Building Information Modeling (BIM) to provide a variety of new metrics to improve on the final design and construction process. Overall, some of the considerations included building alignment, materials origination and composition, as well as energy production and resale through the use of solar panels. In fact, the building surpassed Executive Order 2005-05 requirements, becoming the fourth building in Arizona to achieve LEED Platinum Certification. This accomplishment was a collaborative process also involving Will Architects and consultation from Green Ideas.

Securing the funding for this innovative project included the creation of the Arizona Wildlife Finance Corporation (AWFC), which was enacted to manage the initial Tax/Exempt Bonds and ensure proper financial administration according to contract law. This financial entity allows the AGFD to satisfy its funding responsibilities independently, and ensure the eventual transition of full ownership to the Department after 25 years. No longer unusual, such funding models are one creative option in public-private partnership financing that helped make this project a success.

The new facility has achieved its goals through careful planning, execution, and post-construction management. According to the head of AGFD's development branch, the proximity and convenience is a benefit to the customers and gives employees a sense of community. The public can now enjoy the huge new lobby, complete with seating. Additionally, the new 205-seat auditorium can accommodate public and private meetings, such as those needed by the Commission. All of the goals were met or exceeded, in the new Arizona Game and Fish Department’s headquarters through the use of clear metrics between the partners, providing synergistic functionality for employees and expanded amenities for the public today and well into the future.

Commentary
(1) Methods for Overcoming Impediments
The project had a long-term focus by using environmentally friendly technology and techniques. By utilizing the creative public-private partnership delivery described above, the department was able to create a new, highly sustainable facility many years in advance of when capital funding to finance the project would have been made available through conventional governmental capital funding.

Solar energy production was achieved through a Purchase Power Agreement (PPA) which features the third party finance-installation of solar arrays atop the building’s roof. The third party then sells the power to the facility at an agreed upon and market-competitive rate. This innovation allows the public entity to once again leverage private financing against operating cost budgets, thus achieving long-term sustainability goals for the project. This innovative financing structure will allow the AGFD to lock-in a favorable rate for power rate over the long-term to hedge against price increases. This will aid in budgeting and financial planning in the long-run, as well as save money spent on power.

(2) Key Points of Success or Failure
The project was financed through the use of Tax/Exempt Bonds on a Privatized Lease-To-Own basis. This creative financing vehicle dramatically lowered occupancy costs for the department which, prior to embarking on the project had several things working to its advantage: land it owned, annually predictable revenues which were not subject to legislative approval and a willingness to try something new to consolidate its operations. What it did not have was access to capital funding for a new facility. The Public-Private Partnership concept ideally suited these pre-conditions.

LEED Platinum Certification was also achieved for the project, due in part to an innovative approach to on-site renewable energy production. This aspect of the project was important in gaining stakeholder support. The alignment of the AGFD’s wildlife management and environmental advocacy with the project’s environmental goals was an excellent way to garner support for the project. Also, the Southwestern region of the United States is an area that is prime for solar energy production, and is often more economically efficient than in other regions.