What separates Indianapolis from Detroit, asks Rachel Somerstein in Next American City.
Not 300 odd miles, or the price of a three bedroom home. It’s public-private-partnerships–public projects, funded in part by private business–which have had a profound effect on revitalizing once-downtrodden Indianapolis, she writes.
Michigan law forbids PPP in infrastructure projects, while Indiana’s does not. Indiana’s governor, Mitch Daniels, initiated the public-private Indiana Public Development Corporation in 2004, and in four years it brought some $18 billion in new investment to the state.
“The private sector takes on some risks that it wouldn’t under normal contracting” in a PPP, said Rick Norment, executive director of the National Council on Public Private Partnerships.