PRIVATIZATION: DESCRIPTION
The privatization of services that governments traditionally manage and fund is a complex process requiring the resolution of thorny legal and political issues. At each stage of the process, from initial discussions of whether and what to privatize through the negotiation of contracts and handling of disputes, experienced counsel and a multidisciplinary approach are essential.
The privatization team of McKenna Long & Aldridge brings extraordinary experience to crafting the public/private partnership that is the foundation of successful privatization. The core team offers the unique perspective of former senior policy advisors and chief aides to the President of the United States, the Governor of Georgia and the Mayor of Atlanta.
Our team's victories in lobbying a wide range of issues before Congress, various state legislatures, federal and state regulatory and administrative agencies and local and county governments are notable. In privatization matters they bring experience in representing both governments and private companies seeking to manage government services. This experience promotes an understanding that effective privatization occurs only when the needs of both government and corporate partners are met.
International Expertise
Our Brussels lawyers work closely with colleagues in Washington, DC, on international trade matters, including anti-dumping, anti-subsidy and customs law issues, as well as the application of international trade rules, such as WTO and GATS. We represent non-EU exporters and EU importers in anti-dumping proceedings, responding to anti-dumping questionnaires issued by the European Commission and advising on issues such as classification and valuation of goods, quotas, preferential relations and all problems that importation in the EU may entail, such as warehousing, custom duties, origin of goods, transit and so forth.
In representing clients in the privatization process, we draw on a variety of experience throughout the firm in many related areas, for example:
Tax Collection
Acted as counsel to the largest purchaser of tax certificates and tax executions in the U.S. in matters including preparing responses to requests for proposals from state and local governments; litigating bid disputes; structuring transactions valued well in excess of $100 million; securitizing asset pools; advising on tax matters and performing other legal work related to the privatization of the tax collection process.
Military Housing
McKenna Long & Aldridge represents GMH Communities Trust in the privatization and subsequent redevelopment, management, construction and renovation of military family housing facilities at military installations around the country. These deals involve establishing for-profit joint ventures with branches of the U.S. Armed Services, negotiating 50-year Ground Leases and Management Agreements with the government, and obtaining financing for the projects. Current projects, valued at nearly $2 billion, are underway in Georgia, Maryland, the District of Columbia, Virginia, New York, Colorado, New Jersey, Maine, Connecticut, Rhode Island, Texas and New Mexico.
RTC and Seller Advisory Services
Represented and advised governmental and quasi-governmental entities in the sale to the private sector of real estate debt and equity portfolios. These transactions frequently involved the preparation, structuring and implementation of a public bid process. In this regard, we advised the Bush Administration and the Resolution Trust Corporation during the crisis in the savings and loan sector and were very involved in the sale by the Resolution Trust Corporation of its assets in what was, essentially, the privatization response to the thrift crisis.
Lottery Litigation
Represented the successful bidder for the contract to administer the Georgia State Lottery against a bid protest filed by the second highest bidder for the contract, with a judgment in favor of our client defended successfully through the Georgia Court of Appeals.
Water Infrastructure Bond Deals
Acted as bond counsel, underwriters counsel and in other capacities in connection with more than $3.2 billion in financings of water and sewer infrastructure facilities in Georgia, Louisiana, California, North Carolina, Nevada, Pennsylvania, South Dakota, Tennessee and Virginia.
Lake Lanier Islands Privatization
In the early 1990s we handled the privatization of Lake Lanier Islands in the State of Georgia. Lake Lanier is a U.S. Corps of Engineers water control project. The Corps leased Lake Lanier Islands to the State of Georgia through the Georgia Department of Natural Resources, which subleased it to the Lake Lanier Islands Authority. Our client, KSL, won the right to sublease 11,000 acres of Lake Lanier Islands, which included a hotel, a golf course and a water park.
While the Corps was supportive of the privatization effort, many hours were devoted to reshaping rules and regulations appropriate in a government-operated environment to fit the criteria for commercial success. Because Lake Lanier affects the water supply of three states, KSL's development of the project had to be designed as well to prevent a serious reduction in the water level of the lake.
Since this was the first such privatization for the State of Georgia related tax and employment issues had to be both defined and resolved. It was quickly apparent that privatization would require an interdisciplinary team, including transactional, finance, environmental, employment, government affairs, contracting and tax expertise.
City of Atlanta Water System Privatization
In 1998, the City of Atlanta, in a highly-competitive bid process, chose McKenna Long & Aldridge to serve as Legal Counsel to the City in the privatization of its water system. Both our firm's reputation for solving complex problems creatively and rapidly and our proven, multidisciplinary approach to assisting privatization projects were key factors in its selection. With our assistance, the City successfully completed the issuance of the RFQ/RFP, the proposal review process and the selection process in just six months (March 1998 to August 1998), a remarkably short time for completing this procurement.
Our lawyer worked closely with the City in every phase of the project, including preparing of the RFQ/RFP and form operating agreement and designing the RFQ/RFP review process to achieve maximum competition among proponents within the necessary legal framework. We helped the City finalize the agreements, close the transaction and monitor implementation of the contract.