Threatened by bankruptcy, NY town considers PPPs

Mark Lesko, Town Supervisor of Brookhaven, New York, hopes that PPPs will help prevent insolvency for the municipality. Lesko has identified a string of local landmarks that could benefit from private sector involvement.

The town of Brookhaven, New York is facing a budget deficit and town officials are considering public-private partnerships (PPPs) as a way to ease the municipality’s balance sheet. 

In a state of the town address, Town Supervisor Mark Lesko urged fellow legislators to begin identifying projects with the makings of future PPPs.  Supervisor Lesko pointed to local landmarks that could evolve into projects involving the private sector, including the amphitheatre, airport and town marinas.

Brookhaven is facing insolvency and if the budget continues to operate the way it has been running – which is using a surplus to create a balance – there will be a funding gap of as much as $10 million in 2013 or worse, which could bankrupt the town within three years.

As part of his mission, Lesko is forming a committee to explore the use of PPPs. In addition to performing an analysis of historic and future activity for Brookhaven, this working group is charged with naming infrastructure projects that could be procured as PPPs.

By March 1, the committee must begin preparing Request for Proposals (RFPs) for appropriate projects, which would accelerate the process should these projects be approved by Brookhaven’s Town Board, Lesko said.  

The town of Brookhaven did not return calls seeking comment.