Practices:

• Global Infrastructure and Public-Private Partnerships
• Real Estate
  • Real Estate Development
  • Real Estate Finance
• Government Contracts
  • Construction
  • Claims and Terminations
• Economic Stimulus

Industries

• Construction and Engineering

Experience

Penny Cobey concentrates her practice on real estate development, infrastructure and public-private partnerships. From 2002-2004 she served the Los Angeles Unified School District as senior construction counsel to the largest public building project in the United States, charged with delivering approximately 165,000 two-semester classroom seats at an estimated cost of $12.6 billion. Her responsibilities included developing a value-based procurement process as an alternative to the District’s historic reliance on fixed-price bidding and serving as legal counsel to District source selection committees charged with development of new schools through partnership with the private sector. 

Ms. Cobey is a leader in the firm's global infrastructure practice group. She has authored testimony on the monetization of public assets for the New York State Asset Maximization Commission and the transportation committees of the State of Colorado legislature. She has also written and spoken widely on the American Recovery and Reinvestment Act and its potential for the financing and construction of infrastructure projects. She has experience in project development and structuring, procurement, bid protests, complex design and construction contracts, insurance and land use. She speaks frequently on development issues and is a former Governing Committee member of the ABA Forum on the Construction Industry.

Ms. Cobey holds a Ph.D. and a J.D. from Harvard University and a B.A. from the University of Cincinnati.

Representative Matters

• Advice to joint venture bidding on substantial contract for design, engineering and project management services for the proposed High Desert Toll Road north of Los Angeles, to be developed by a public private partnership. Issues included analysis of procurement documents, recommendations for enabling legislation and advice as to bid protest.
• Testimony to the New York State Asset Maximization Commission regarding advantages of design-build and negotiated proposals in developing public school facilities, with recommendations for enabling legislation.
• Development of luxury condominium project in Wilshire Corridor. Site was assembled in part by leasing land from the Metropolitan Transportation Authority at a bargain rate in return for renovating a subway stop and adding amenities and MTA employee parking. Issues included negotiating complex ground lease; drafting and negotiating contracts for architects, construction manager, owner’s representative; analysis of insurance options and extensive advice on wrap coverage; advice on claim prevention. Construction cost: over $100 million.
• Renovation, seismic retrofit and new exhibit design for the Natural History Museum of Los Angeles County, a project estimated at over $100 million in construction cost. Development approvals were negotiated with LA County, partial owner of the Museum, and the City of Los Angeles, owner of the Museum site. Financing achieved through a combination of county and state funding and issuance of tax-exempt bonds. Other work included drafting and negotiating contracts with architect, exhibit designer, construction manager.
• Developed the first value-based procurement system to be employed by the Los Angeles Unified School District in its $12.6 billion building program, the largest in the United States, utilized an overlooked section of the Education Code that allowed the District to contract with developers on a value rather than fixed-fee basis and avoid Public Contract Code restrictions requiring public bidding of contracts between the District and general contractors.
• Initial-stage development of the Ambassador Hotel, a historically significant structure located on 23 acres in midtown Los Angeles, slated to become a learning center of four separate schools serving a total of 4400 students. Issues included over 18 months of CEQA-related work, drafting and negotiating architect’s agreement worth about $17 million, preparing legal response to substantial opposition to project from various constituencies. Construction cost: over $400 million.
• Advised LAUSD throughout the process of partnering with N.E.W. (New Economics for Women), a non-profit that assists low-income, single-parent families by providing them with housing, counseling, after school programs and education. Project: a public-private partnership initiative to develop the N.E.W. Canoga Park Elementary School, a charter school in the West San Fernando Valley. Land and project management consultation provided by LAUSD; project management services contributed and school design and construction contracts held by N.E.W.; funding through Washington Mutual loan to N.E.W., guaranteed by LAUSD.
• Development of 450 North Grand, a magnet high school for the performing arts to be located in downtown Los Angeles. Issues included analysis of private-sector support to maximize compliance with public procurement law, drafting and negotiating substantial architect’s agreement, advising as to legal impact of cost overruns. Construction cost: over $100 million.
• Development of freestanding proton therapy treatment center for Massachusetts General Hospital in Boston. Issues included analysis and interpretation of Federal Acquisition Regulations in connection with obtaining substantial federal funding for the project; development of complex value-based procurement processes for construction of building and construction of immense custom machinery for delivery of laser beams; drafting and negotiation of design/build contract for machinery with Swiss vendor. Estimated construction cost: about $50 million.

Education

• J.D., Harvard Law School, 1984, cum laude
• Ph.D., Harvard University, 1979; A.M., 1975 (English and American literature)
• B.A., University of Cincinnati, 1972, summa cum laude

Admitted

• California
• Massachusetts