The Importance of Public-Private Partnerships
Public-private partnerships can play a key role in real estate developments. In some cases, a development cannot get off the ground without a partnership with local government.
This was the case at Miller’s Landing in Castle Rock, CO. Miller’s Landing is developing a once blighted and abandoned property in town. At one time the property was the location of a municipal dump. Before the first shovel of dirt was turned, we created a public-private partnership with the Town of Castle Rock to help us develop financing options and move the project forward.
The partnership laid the foundation for our ability to remediate the dump, which posed an environmental threat and was a public eyesore, into a vibrant town center. Our blog posting Public-Private Partnership Supports Success outlines in more detail our partnership with the town and the benefits it offers.
Benefits of Public-Private Partnerships
Public-private partnerships (PPPs) in the real estate sector are growing in popularity. A blog on the National Real Estate Investor website titled Successful Strategies for Effective Public-Private Partnerships outlines the value PPPs offers.
The blog states, “Ultimately, bringing together the entrepreneurial energy and creative dynamism of the private sector with the resources and momentum that municipalities or civic organizations can bring to the table is a winning formula. When done correctly, it can result in the creation of influential and even iconic destinations.”
Public Participation is Crucial
As is often the case with developments in today’s social media world, garnering public participation and support is sometimes the first step a developer should take before attempting to form a partnership with local government entities.
The Urban Land Institute outlines the importance of community engagement in a free PDF brochure titled Successful Public-Private Partnerships: From Principles to Practices that offers an in-depth look at creating successful public-partnerships.
The brochure states: “An integral part of creating a shared vision is public participation and engagement. Community outreach, public presentations, and workshops with neighbors and constituent groups are often required before government considers and approves PPP projects. Public participation can be used both to help shape a shared vision and to educate stakeholders and interested parties, to dispel myths and present facts supporting the proposed project. This early spadework prevents opposition down the road.”
At Miller’s Landing we’re actively working with the community in Castle Rock and the surrounding area to tell our story and to learn what the community wants. Our blog Community Involvement is Key at Miller’s Landing outlines the community outreach program we are conducting through our Neighborland social engagement platform.
Principles for Success
Creating a successful real estate public-private partnership that creates win-win situations for all parties takes knowledge and successful negotiations.
The Urban Land Institute offers these 10 principles* for successful public-private partnerships:
- Prepare properly for public/private partnerships
- Create a shared vision
- Understand your partners and key players
- Be clear on the risks and rewards for all parties
- Establish a clear and rational decision-making process
- Make sure all parties do their homework
- Secure consistent and coordinated leadership
- Communicate early and often
- Negotiate a fair deal structure
- Build trust as a core value
*Ten Principles for Successful Public/Private Partnerships Mary Beth Corrigan et al., Ten Principles for Successful Public/Private Partnerships (Washington, DC: ULI, 2005)
Entering into partnership negotiations with a clear vision of what you want to achieve with a development and having the negotiating skills to communicate that vision to the community and local government officials are the keys to success.
Creating A Bright Future
Thanks in part to our partnership with local government entities, Miller’s Landing is creating a vibrant town center. It includes modern office spaces with digital connectivity, exciting retail and entertainment options, a resort hotel and spa, conference and meeting space, ample open space and easy access to downtown and the region’s top outdoor recreation park.
It’s the ideal place to locate your business. We invite you to join us and create the future together.