PROJECT SUMMARY
In 2002, the General Assembly passed, with support from Governor Warner, the Public-Private Education Facilities and Infrastructure Act of 2002 (PPEA), which allows for the private sector to partner with state and local governments to develop needed infrastructure projects. Because of Virginia's growing population, the need for new school facilities, built in a cost effective and timely manner, is acute.

The first project for which a comprehensive agreement was signed under the PPEA was a multi-school, mixed use development in Stafford County. As one of the fastest growing localities in the country, Stafford needed to quickly develop new elementary and high school facilities to keep up with growing enrollments. Taking advantage of the new PPEA, Stafford County issued on February 27, 2003, a solicitation for private companies to develop up to three new schools (2 elementary and one high school) on county owned land (the 150+ acre Armstrong tract), provide for revenue generating opportunities such as recreational facilities, develop soccer and sports fields, and provide for the later construction of a higher education facility. Seven companies responded to this solicitation on March 27, 2003. Within a week of receiving these proposals, the county had narrowed the field to two competing proposals - including the Haskell/Hess P3 Schools collaboration. Other project partners included Grimm+ Parker Architects and the engineering firm of Patton, Harris, Rust & Associates.

After several months of negotiation, the Haskell/Hess team was ultimately selected to develop the project. The comprehensive agreement was signed on July 1, 2003. The final project included two schools - an elementary school and a high school, recreational fields, and land banked for a higher education center - all located on the Armstrong tract. The Haskell/Hess team worked with a private developer to sell a portion of the property for a senior living facility. This sale netted $1.8 million towards the project for 5 acres - almost the cost of the entire Armstrong tract purchased by the school board five years earlier. Land was also set aside for a new YMCA facility adjacent to the senior living facility. By locating all of these facilities adjacent to each other, the Haskell/Hess team created a learning village. The high school has access to the pool and some of the recreational facilities at the YMCA. The senior living center provides volunteers to work at the elementary school while high school vocational students can learn nursing in a hands on environment at the senior living facility. Such co-location not only encourages collaboration, but it results in cost savings through less infrastructure and other joint use activities.

Construction began in the late fall of 2003 on Margaret Brent Elementary School, and it was completed for the school year beginning September 2004. The school, consisting of 88,000 square feet, was built at a cost of $12,986,059. At $145.00 per square foot, this amounts to $17.47 per square foot less than the average cost for an elementary school in Virginia according to Virginia Department of Education data. Construction on Mountain View High School began in February 2004 and was completed prior to the beginning of the 2005 school year. The building consists of 270,000 square feet and will cost $36,371,385 ($134.71 per square foot). The average high school in Virginia costs $142.83 per square foot, so the Haskell/Hess P3 approach represented a savings of 6.2% versus the traditional procurement approach. The schools were funded through the issuance of bonds by Stafford County through the Virginia Public School Authority.

The real estate deal included several innovative features that also contributed to the cost savings. Many of these elements are excellent examples of the five criteria - originality, quality, implementation, economics, and P3 approach - that are must be demonstrated for a potential award candidate. In fact, the project has already earned the distinction as the "Public Private Project of the Year" for 2005 from the CCIM- Virginia Chapter.

The Armstrong tract was purchased by Stafford County Public Schools (SCPS) in February 1999 for $1.4 Million. On September 7, 2004, SCPS conveyed the Armstrong property to Stafford County, thus facilitating development of non-school related activities. Stafford County then agreed to a 40-year lease (with five year renewal options up to an aggregate of ninety years) of about 122 acres to SCPS. The lease rental payment is $1 per year. Stafford County retains control of the remaining 28 acres for other development components including:

• Five Acres Senior Living (generated $1.8 million)
• Twelve Acres YMCA/Community Center
• Eleven Acres Higher Education Center

These innovative project approaches and revenue generating opportunities are in addition to the cost savings achieved through the PPEA process that were outlined in the project summary document. By taking advantage of shared infrastructure and creative development opportunities, the Haskell/Hess collaboration in Stafford County achieved the true spirit of the PPEA.