New Approach to Public-Private Partnerships Offers Greater Financial Options

This article presents a new way of thinking about public-private partnerships that financially benefit public agencies without the agency losing control of facility operation. The author gives examples of public private partnerships that have worked well, such as Chicago’s partnership in the operation of the Millennium and Grant Park parking garage system. The author then notes that partnerships can give public agencies the opportunity to find capital in a time of limited credit while still maintaining control over their assets for the best interests of their users. Next are guidelines for entering into such partnerships. The author suggests that assets engaged in a partnership should be user paid services such as parking, transportation, and some public facilities, and that the function of the contracted out asset should not be a part of the institution’s central mission. Further, the public-private partnership should take into account the interests of those that the institution serves, as well as retaining control when the facility needs to be renovated, expanded, or updated in any way.