As described in yesterday’s blog, a public-private partnership development team made up of the municipality, developer, tenants and university (when applicable) is necessary to build a CoolTown, simply because their individual assets are needed.
What’s a development team? Essentially, anyone with equity in the project; bankable value. Here’s what equity each party could contribute:
Municipality: Land and/or money through incremental tax revenue (where the taxes generated from the project go back into the project.
Developer: Money, and lots of it. Also, expertise to carry out the design and construction.
Tenants: A committed market. It’s not upfront money since downpayments must be refundable for any reason, but any kind of assurance that they won’t simply skip out once the project is built.
University: Usually land or a committed market of students/graduates for housing and/or research space.
Discussion of building a CoolTown usually goes nowhere until it becomes focused on establishing a public-private partnership development team.