North Carolina legislation allows private developers to build schools
Lawmakers in North Carolina have given the green light to legislation allowing schools to make "build and rent" deals. The legislation, which allows private developers to finance and build schools that can be leased to local governments, awaits the governor's signature. Proponents say that private developers can build schools more quickly and cheaply without having to survive the approval process of local governments. Long term contracts with private developers will bring more certainty to school boards without having to go through voting referenda for approval. "This will give us an opportunity for schools and school sites that normally we couldn't get," says Mike Burriss, assistant superintendent for facilities in Wake County. The legislation gives more control to developers, who would come up with the site, design, and funding for schools when school boards ask for proposals. Opponents fear developers will gain too much control. Susan Harrison, a Wake County school lobbyist, disagrees. "We are not giving up control of where we're planning on putting our schools," she says. Uncertainties remain as to how the plan will function properly. "This says that the developer would take care of maintenance. But if you've ever had a bad landlord, you know that's not always true," says Stan Norwalk, a retired government executive. The lone dissenter to the bill was state senator Hugh Webster, who indicated that a long term development contract is just debt by another name and that this issue requires voter approval.
Raleigh News & ObserverBy Ryan Teague Beckwith
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Editor's Note: An overview of private-public alternative financing arrangements for school facilities by the Appleseed Foundation is available below. For an example of a private-public success story in an urban setting, see the report by the 21st Century School Fund.]
[Appleseed Foundation report][21st Century School Fund report on D.C.'s Oyster School]