Public-Private Partnerships in Urban Development in the United States

29

The public sector involvement is determined by the scope of intersectoral partnership
activities. I argue that the public sector involvement in urban development projects is low in
the case of administrative incentives but high when the city is engaged in development project
financing. According to Cummings, Koebel, and Whitt, the financial roles of cities in urban
development can range from “gift-giver” to “equity partner” (Cummings, Koebel, Whitt,
1989:219). Cities that hold equity positions in development projects are highly involved in
urban development. Such cities may be described as entrepreneurial cities. Besides formal and
informal intersectoral partnerships one can determine investment and social partnerships with
regard to their chief objective and spatial focus.

Figure 5: Investment and Social Partnerships

economic
development

neighborhood
revitalization

chief partnership
objective

neighborhoods

Spatial Focus

Source: own draft

Investment partnerships are more widespread and visible than social partnerships in the
United States. Essentially, investment partnerships are focused on economic development in
downtown and its CBD. The projects are physical in nature and mostly highly visible.
Downtown-focused public-private partnerships are also described as elite-based and
centralized partnerships. Social partnerships, in contrast, are neighborhood-based partnerships
addressing neighborhood development, community services, housing and jobs. Such
partnerships are more “inclusive” (Squires, 1991:198) and aim at broader participation and
social distribution aside economic development. Consequently, economic development is also
an important feature for social partnerships following the thesis that the very concept of
public-private partnerships is to promote urban economic development, but the projects are
social-oriented as well. Socioeconomic revitalization comprises physical and social
rehabilitation of neighborhoods and in this regard combines place-based urban development
strategies and people-based strategies (Wagner, F. W.; Joder, T. E.; Mumphrey, A. J.,
2000:11). The federal empowerment program (EZ/EC) can be considered an appropriate
example of such “new partnership” approaches (Haider, D., 1986:139; Barnekov, 1989:38) in
the United States. In this context, third sector, nonprofit organizations have become more
important since the 1980s. An outstanding example for such neighborhood improvement
associations are Community Development Corporations (CDCs). A CDC is an organization of
neighborhood residents or organizations established to revitalize and strengthen

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