A primary challenge for any municipal leader, whether elected or appointed, is to provide modern infrastructure to the community without creating crushing debt.
Debt? It’s called bonded indebtedness. That describes the traditional way to raise money for buildings, roads, treatment plants and more – selling bonds.
Much of the time, bonds require approval from the voters. After all, it ultimately is the residents who are paying the interest and principal on those bonds. Even revenue bonds require approval from the city council, county board of supervisors or other public body.
But there’s another way.
Cities and districts can use private financing – and leverage state and federal programs – to complete public infrastructure projects without raising taxes. What city council is going to ignore the chance to have a new water treatment plant, a new library or a new convention center without asking voters to foot the bill?
“It is all about Public-Private Partnerships,” says John Keisler, CEO and managing partner at Sunstone Cities. “It’s called P3, and it opens a whole new world of financing for important civic projects. When you are able to bring private capital to bear, along with public incentive programs, infrastructure that seemed beyond reach becomes possible.”
Sunstone Cities has partnered with X-Caliber Rural Capital and American Lending Center (ALC) to muster resources for creative Public-Private Partnerships for the design, build, finance, operation, and maintenance of publicly-owned facilities. The Sunstone Cities team has specific expertise in government guaranteed loans, P3 financing and targeted government programs.
Sunstone’s Public Infrastructure Financing Solutions (PIFS) program offers expertise in multiple areas. That includes Public Infrastructure Financing, P3 Financing, Capital Improvement Project Financing and Bridge and FHA Loans.
The key, according to Jayro Sandoval, Sunstone’s Economic Development Officer, is the ability to bring together the right developer, financier and government program to complete a quality project.
“Federal, state and county governments have a vested interest in helping to improve public infrastructure in the broadest sense,” he said. “They have created several programs to assist financing projects, and we and our partners have experience putting such financing packages together.
“Our goal is to streamline financing, reduce risk, and deliver the right solution for every project.”
Keisler and his partner Jeff Fullerton were involved in the Long Beach Civic Center project, which is still the gold standard for P3 infrastructure projects in California. The $520 million complex was completed with the city of Long Beach committed to no more than what it was paying annually to maintain the old City Hall, main library and adjacent park.
Keisler was working for the city of Long Beach at the time, and Fullerton was the project director for developer Plenary Edgemoor. Keisler and Fullerton have since formed Public Private Partners LLC, working hand-in-hand with Sunstone Cities.
There are several tools available that can make alternatives to traditional bond financing both more doable and more affordable. For example, ALC is a certified non-bank lender for a number of Small Business Administration loan guarantee programs, and has access to diverse funding sources.
X-Caliber Rural Capital has experience with the USDA (U.S. Department of Agriculture) Community Facilities Program, designed to improve the quality of life and promote economic development in rural areas by supporting essential facilities. That financing pairs with guaranteed loans to reduce costs for rural projects.
Other PIFS lending products include the Commercial PACE (Property Assessed Clean Energy) program for energy-efficient projects, Tax Increment Financing to use future tax revenues to fund current investments, bridge loans to cover gaps until permanent financing is secured, and FHA (Federal Housing Administration) loans to provide long-term financing with favorable terms.
Sunstone Cities’ secret sauce is the ability to bring all of these resources and more to the table, and create the financing packages that work. Add the ability to attract reputable developers and operators, and the result is an infrastructure project that is an affordable asset for your city.
Projects can range from hospitals to convention centers, from Olympic facilities to fire stations. Take the first step today.
Sunstone Cities is at the Long Beach conference this week – be sure to stop by and get answers to all your questions. You can also go to sunstonecities.com or email Jayro.Sandoval@sunstonecities.com.
About Sunstone Cities
Sunstone Cities is an economic development consulting firm that helps local government leaders unlock economic development, new business formation, and job growth. Data-driven insights, industry expertise and public-private partnerships help cities revitalize economies, attract businesses and better monetize community assets. Visit www.sunstonecities.com to learn more.
© Sunstone Cities 2025
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