Resources

Insights, research, and frameworks that inform our approach to effective public-private partnerships.

Successful Public/Private Partnerships

Authors: Joseph E. Coomes Jr. and David Scheuer

Edited by: Stephen B. Friedman

This publication builds on ULI's foundational Ten Principles for Successful Public/Private Partnerships, providing public and private sector representatives with an understanding of both the necessity for, and the obstacles and opportunities inherent in, public-private partnerships. It offers a comprehensive toolkit of best practices for creating effective partnerships in development, infrastructure, and public facilities.

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Understanding the Challenges

The ULI Public/Private Partnership Council conducted a comprehensive survey to identify the most significant challenges facing both sectors in crafting effective partnerships. The results reveal critical gaps in understanding, communication, and trust that must be addressed for successful collaboration.

Survey Results: Greatest Challenges in Public-Private Partnerships

1. Where are the greatest challenges in crafting effective public/private partnerships?

Public sector understanding of private capital criteria and return requirements60.98%

Validating the "fairness" of the deal to the public sector51.22%

Negotiations dynamic—too much hard bargaining, not enough trust building48.78%

Lack of public support for "public subsidies"41.46%

Public sector understanding of risk of loss in predevelopment36.59%

Determining a fair rate of return to the private sector34.15%

Private sector understanding of public financing and investment constraints24.39%

Sharing proprietary information24.39%

Validating market and cost assumptions14.63%

Public sector's unreasonable performance schedule14.63%

Private sector understanding of need to create community ownership12.2%

Private sector lack of commitment to working with community groups12.2%

Public sector selecting a developer based on "pretty pictures" instead of performance9.76%

2. What expertise does the public sector need?

Real estate finance—capital sources and required returns58.54%

Standards providing a fair return to the private sector and protecting the public sector from "giving away the store"56.1%

How to manage negotiations so they are transparent and respect proprietary information43.9%

Negotiation as problem solving not hard bargaining41.46%

How to reduce predevelopment risk and still achieve the community vision39.02%

Risk profiles for each state of development29.27%

How to build community support24.39%

How to select a developer based on qualifications17.07%

3. What expertise does the private sector need?

How to explain the project risk profile and capital financing so the public agency can respond effectively63.41%

How to engage the community and create ownership46.34%

How to create a deal that is fair to the public sector46.34%

Negotiation as problem solving not hard bargaining43.9%

The range of public sector tools that can reduce risk, lower financing costs, and address a financing gap34.15%

Entitlement processing steps and their potential impact on project viability and processing time24.39%

How to participate in negotiations so they are transparent and respect proprietary information24.39%

Source: Charles A. Long Properties, Survey Monkey. From "Successful Public/Private Partnerships" by Joseph E. Coomes Jr. and David Scheuer, published by the Urban Land Institute.

The survey identified critical expertise gaps: the public sector needs better understanding of real estate finance and fair return standards (58.54% and 56.10% respectively), while the private sector needs to better explain project risk profiles and engage communities (63.41% and 46.34% respectively).

How Community Catalyst Co. Addresses These Challenges

Our approach is specifically designed to bridge the gaps identified in this research. We serve as translators and facilitators between the public and private sectors, providing the technical expertise and structured processes that both sides need to build trust and achieve successful outcomes.

Bridging the Understanding Gap (Challenge: 60.98% cited public sector misunderstanding of private capital)

We translate complex private sector financial requirements into clear frameworks that public officials can understand and defend. Our financial modeling makes capital structures, return requirements, and risk profiles transparent and accessible to non-financial audiences, while our feasibility analysis provides municipalities with the evidence needed to evaluate developer claims objectively.

Validating Deal Fairness (Challenge: 51.22% struggle with validating fairness)

Our independent "but-for" analysis and gap studies provide objective evidence of whether public incentives are justified and appropriately sized. We establish market-based benchmarks for fair returns, document comparable transactions, and structure deals that balance public accountability with private feasibility—giving both sides confidence that the partnership is equitable.

Building Trust Through Transparency (Challenge: 48.78% cite hard bargaining vs. trust building)

We facilitate collaborative, problem-solving negotiations by providing a neutral analytical foundation that both parties can trust. Our role as an independent advisor helps shift conversations from adversarial positioning to joint problem-solving, using shared financial models and clearly defined public objectives to guide discussions toward mutually beneficial solutions.

Reducing Predevelopment Risk (Challenge: 36.59% concerned about predevelopment risk)

Through our Priority Site Incentive Packaging service, we help municipalities move critical sites from concept to market-ready opportunities before engaging developers. By structuring incentive packages, conducting feasibility analysis, and preparing marketing materials in advance, we reduce uncertainty for both sectors and create a clearer path from initial interest to successful development.

Providing Technical Expertise (Challenge: 58.54% of public sector needs real estate finance knowledge)

We serve as an extension of municipal staff, providing specialized expertise in development finance, incentive structuring, and public-private deal making that most communities cannot maintain in-house. Our advisory support ensures that municipalities can participate effectively in negotiations, understand the implications of different deal structures, and make informed decisions throughout the partnership process.

Demonstrating Community Value (Challenge: 41.46% struggle with lack of public support)

Our fiscal impact analysis and economic benefit documentation help municipalities build the public case for partnerships by quantifying returns on investment, job creation, tax generation, and other community benefits. We translate complex financial structures into clear narratives that elected officials can communicate to constituents, helping build the political support necessary for successful implementation.

By addressing these fundamental challenges head-on, Community Catalyst Co. helps create the conditions for successful public-private partnerships: shared understanding, validated fairness, transparent communication, managed risk, and demonstrated public benefit. Our approach transforms the partnership process from adversarial negotiation to collaborative problem-solving.