SUCCESSFUL DEVELOPMENT AND P RIVATIZATION OF E NERGY P LANTS THROUGH ENHANCED L EASING

Authors

  • Michael R. Simmons Patton Boggs, LLP
  • Anatolij (Tony) Kushnir Patton Boggs, LLP
  • Bob Eidson Energy Systems Group, LLC

DOI:

https://doi.org/10.13052/dgaej2156-3306.1826

Abstract

In June 2001, Deputy Secretary Dr. Leo Mackay formally dedicated
the “Mountain Home Energy Center,” Department of Veterans Affair’s
(VA) first privately financed and operated energy development and op-
eration. The energy center was also a “first” in the federal government in
that it was developed and financed with minimal, short-term federal com-
mitments in lieu of the traditional long-term leaseback or energy purchase
arrangements. This state-of-the-art cogeneration facility, designed in har-
mony with the historic Beaux Arts campus architecture at the James H.
Quillen VA Medical Center (Mountain Home) in Johnson City, TN, will
not only serve the energy needs of the VA Medical Center, it will also pro-
duce and sell energy products to the neighboring East Tennessee State
University’s James H. Quillen College of Medicine, as well as to others in
the local community for many years to come.

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Author Biographies

Michael R. Simmons, Patton Boggs, LLP

Michael R. Simmons , is a partner in Patton Boggs’ privatization
practice where he structures complex financial transactions, supporting
innovative, public-private venture/asset management programs, focus-
ing his efforts on loan and real estate privatization. Prior to joining the
firm, Mr. Simmons was with the Department of Veterans Affairs (VA), Of-
fice of General Counsel, privatization programs. There he served as the principal architect and author, of the VA’s “enhanced-use leasing” pro-
gram—an innovative program in which under-utilized real estate is priva-
tized through leases, to private entities in exchange for cash, improved
space, goods or services. Mr. Simmons was responsible for developing
and implementing a unique and innovative financing structure, adopted
by VA for all of its projects where the VA retains considerable involvement
with the privatized activity. He also structured all complex financial trans-
actions, such as financing the projects through public bond offerings, tra-
ditional construction and take-out lending. This structure was so success-
ful that Mr. Simmons was awarded the National Performance Review
Award in 1995, 1999 and 2000. In the years since Mr. Simmons’ involve-
ment with the program, over $300 million in private investment has been
successfully placed in VA facilities and properties. Mr. Simmons may be
reached at msimmons@pattonboggs.com.

Anatolij (Tony) Kushnir, Patton Boggs, LLP

Anatolij (Tony) Kushnir is a partner at Patton Boggs. Tony Kushnir
builds and fosters innovative, public-private partnerships that encourage
private sector investment in public properties and infrastructure. Prior to
joining the firm, Mr. Kushnir was the director of the Department of Veter-
ans Affairs (VA) asset management program and responsible for the ac-
quisition, management, and disposal of all department capital assets.
While at the VA, Mr. Kushnir was the architect and author of the en-
hanced-use-leasing program—a unique program in the federal govern-
ment in terms of its scope and authority. Through the enhanced-use leas-
ing program, the VA secured significant private sector investment onto VA
properties for the private development and operation of cogeneration fa-
cilities, housing, office buildings, child care centers, medical office and re-
search facilities, parking garages, and retail centers that serve both VA and
the local economy. In the years since Mr. Kushnir established the program,
over $300 million of private investment has been successfully placed in VA
facilities and properties.

Bob Eidson, Energy Systems Group, LLC

Bob Eidson is currently the federal business director for Energy
Systems Group LLC, of Evansville, IN, where he leads a sales and techni-
cal staff in pursuit of energy development and performance contracting
projects with various federal customers. ESG is the only energy service
company, which has successfully privatized the development, operation
and maintenance of energy facilities and energy infrastructure, on federal
property, through innovative and low risk financing and ownership busi-
ness models. ESG is also one of DOE’s Biomass and Alternative Methane
Fuel (BAMF) Super Energy Savings Performance Contractors

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Published

2003-03-15

How to Cite

Simmons, M. R. ., Kushnir, A. (Tony) ., & Eidson, B. . (2003). SUCCESSFUL DEVELOPMENT AND P RIVATIZATION OF E NERGY P LANTS THROUGH ENHANCED L EASING. Distributed Generation &Amp; Alternative Energy Journal, 18(2), 57–65. https://doi.org/10.13052/dgaej2156-3306.1826

Issue

2003: Vol 18 Iss 2

Section

Articles