Partnerships

Overview

Transit-oriented development, infill development, and other types of smart growth projects often fall under the purview of multiple public agencies and usually involve collaboration with various property owners, local community organizations, and other private and nonprofit entities. Forming effective partnerships is therefore a critical part of developing a successful funding and financing strategy for smart growth infrastructure. These partnerships can include interagency partnerships, public/private partnerships, and anchor institutions, defined below.

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Anchor Institutions

Anchor institutions are entities such as universities, hospitals, and companies that are inextricably tied to their locations because of real estate holdings or capital investment, history, or mission. Because of these deep ties to their communities, these organizations may have an interest in investing in local economic or community development. From the perspective of a city or community, an anchor institution may bring new funding sources to the table as well as leadership capacity, research expertise, and other forms of human capital. The case study of the Greater University Circle Initiative and University Circle, Inc, in Cleveland, Ohio provides examples of how anchor institutions can work with cities to fill the gaps in traditional sources of funding and financing for smart growth infrastructure.​

CASE STUDIES

 

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Public/Private Partnerships

Joint Development

Joint development refers to a real estate development project that involves a cooperative arrangement between a private sector entity and a public entity like a city, county, redevelopment agency, or transit agency. Joint development arrangements can take a number of forms, including the sale or lease of publicly owned land or air rights for specific types of development, or joint construction of a transit or other public facility. Depending on the particular arrangement, the public and private partners can share costs, revenues, and/or financial risk. Joint development is only applicable where the public sector owns land.

Joint development can allow a public agency to benefit from a private developer’s expertise and access to credit, while maintaining some control over the use of public property and potentially receiving revenues from the development. From the private developer’s perspective, partnering with a public agency can provide access to subsidy or an agency’s bonding capacity, and/or help defray some of the risks associated with development. On the other hand, joint development can have downsides for both parties, leaving the public sector exposed to financial risk and reducing the private developer’s flexibility.

CASE STUDIES

Parking Management District

Parking management or benefit districts combine a number of tools within a designated geographic area (typically a downtown or other business district) in order to ensure efficient utilization of existing commercial parking spaces; protect residential neighborhoods from visitor, employee, and/or commuter parking; and raise funding for transportation and/or other neighborhood improvements. They are typically managed by a business improvement district, transportation management association, or other PPP that includes representation by local business and property owners and other stakeholders.

CASE STUDIES
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Interagency Partnerships

Local governments—including cities, counties, and special districts such as sewer or water districts—have traditionally been charged with building, operating, and maintaining basic infrastructure and facilities in California. In a smart growth context, however, local governments often partner with local or regional transportation agencies to improve bicycle/pedestrian access, provide parking, or make other station area improvements. Transit agencies may also get involved more directly in transit-oriented development when the agency owns land near the station that they wish to develop, as in the West Dublin BART case study.

CASE STUDIES

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West Dublin BART