Public-Private Partnerships, Public Authorities, and Democratic Governance

Abstract

This case explores public-private partnerships in Omaha, Nebraska, where substantial private donations were received for the construction of two city-owned facilities: a convention center/arena and a baseball stadium. The donors required creation of a new public authority to undertake the construction and operation of the projects. This article analyzes key issues related to the decision to enter into the partnerships, contract terms, risk-sharing, transparency, and accountability. It also identifies several important factors that have not been well addressed in the literature, including the role of institutions, leadership of individual actors, contractual modifications, and power and politics. The study helps to advance theory-building in this area and, as well, provides advice to public administrators and officeholders in governments considering private donations for public projects.

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