Notes · Tim Derrington

Building Community Through Public-Private Partnerships

November 3, 2024

The fastest-growing cities in the country are also, almost by definition, the cities most behind on their public infrastructure. The recreational facility, the cultural building, the community center — these are the projects that municipalities want to build, that residents want them to build, and that conventional municipal procurement is least equipped to deliver on the schedule the population growth demands.

The public-private partnership has emerged as the most consistent answer to that gap. The structure varies from project to project, but the pattern is recognizable: a private operator with the operational expertise and a portion of the capital partners with a municipal entity that contributes site, infrastructure, and (often) a portion of the financing. The building gets built faster than the public process alone could deliver, and it operates with the discipline of an enterprise rather than the discipline of a department.

For designers working in this register, the P3 changes a few things in important ways.

First, the design brief is more layered than a conventional commercial brief. There is a private operator with a P&L; there is a municipal stakeholder with a public-realm responsibility; there are often community-engagement processes baked into the procurement that don’t apply to a conventional retail or hospitality project. The design has to read coherently to all of them.

Second, the operating model has to be explicit in the building. A facility that is publicly accessible during certain hours and privately programmed during others has to organize its threshold conditions, its security, and its wayfinding around that fact. The architecture is not background to the operating model — it is, often, the operating model rendered in plan.

Third, the construction approach is generally more conservative than a fully private project of the same scale. The financing structure rewards predictability; the political structure rewards the appearance of fiscal discipline; the asset is held longer than a typical commercial project. The materials and assemblies are chosen for that hold period.

We have been spending more time in the P3 conversation in the last few years, partly because the experiential-venue work — the climbing gyms, the racquet clubs, the cultural installations — sits naturally close to the kind of program municipalities are most interested in delivering through these structures. The match is intuitive: the experiential-venue typology is, in our reading, a piece of public infrastructure that happens to be operating as a business. The P3 makes that public-private hybrid explicit.

There is a longer policy conversation to have about which P3 structures actually deliver and which ones produce buildings whose financing structures collapse under their operating realities. That conversation is being had, in fragments, across municipal governments and design teams in Texas right now. We will write more about specific examples as the projects we are working on can be discussed publicly.

For now, the worth-marking observation is that the procurement vehicle is upstream of every design decision in this kind of work. Understanding the P3 — its incentives, its constraints, its political requirements — is, increasingly, part of the design discipline.

#procurement#civic#policy


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