How the City of San Diego and WMATA Are Redefining Public-Private Partnerships

Public-Private Partnerships (P3s) are redefining how cities invest in housing, infrastructure, and community development. With municipal budgets stretched thin and demand for resilient civic spaces at an all-time high, P3s have become essential frameworks for aligning public leadership with private sector expertise. The foundation of every successful P3 is clarity of purpose. 

As Kameshia Freeman, Senior Vice President, Government and Education Advisory at JLL, explains: “This is about breaking down the fundamentals of P3s in plain terms—what they are, when they make sense, and how city leaders can use them as a tool to advance their community's priorities.”

Projects anchored in well-defined, community-driven goals attract stronger private partners, align public stakeholders, and sustain momentum through political and financial cycles. 

From San Diego’s focus on affordable housing and cultural amenities to Washington Metropolitan Area Transit Authority (Metro) market-ready structures that de-risk complex transit projects, new models of P3s are proving that civic reinvestment can be both ambitious and achievable. These partnerships go beyond financing—they are creating affordable homes, revitalized neighborhoods, and scalable solutions that help cities meet long-term community needs. 

For municipal leaders, transit agencies, and advisors, the question is no longer whether to use P3s, but how to structure them effectively. The lessons from San Diego and Metro demonstrate that with clarity of purpose, strong frameworks, and accountability, P3s can transform underutilized assets into lasting community value. 

As James Birkey, Senior Vice President at JLL, puts it: “Define the problem clearly—what it is you’re trying to solve—and then create a solution around that. Every project must be mission-driven.”

San Diego’s Midway Rising redevelopment illustrates this principle. On 48 acres currently home to outdated facilities, the city is advancing a P3 that will deliver 4,250 housing units—including 2,000 affordable homes—along with 16 acres of new parks and open space, and a cultural and entertainment anchor. 

For Christina Bibler, Economic Development Director, the success of the effort depends on focus: “When we’re maintaining our focus on the end goal, we can navigate challenges during a complex P3 negotiation.”

The lesson is clear: prioritizing community outcomes—such as housing, public spaces, and cultural anchors—transforms P3s from financial transactions into civic reinvestments aligned with public priorities. 

Transit agencies face unique challenges, including multi-jurisdictional politics and financial instability. The Washington Metropolitan Area Transit Authority (Metro) has addressed these concerns by establishing a framework designed to enhance the predictability and market readiness of P3s. 

This framework includes: 

• Pre-development site preparation through zoning and feasibility assessments 
• Standardized agreements to reduce transaction costs 
• Milestone-based contracts that embed accountability 
   

As Nia Rubin, Acting Vice President of Real Estate and Development at Metro, explains:
“Milestone-based agreements with off-ramps hold developers—and us—accountable. We want to make sure projects advance instead of stalling.”

By reducing barriers to entry and increasing transparency, Metro shows how well-structured frameworks can harmonize public oversight with private innovation—even in complex environments.

Both the City of San Diego and Metro demonstrate that P3s succeed when strategic vision and effective execution are aligned. San Diego exemplifies the community-outcome model, focusing on civic needs like housing, parks, and cultural infrastructure. WMATA exemplifies the market-readiness model, using repeatable frameworks to mitigate investment risks across multiple sites. 

Though their approaches differ, the underlying principle remains the same: P3s are not shortcuts. They are resilient tools that, when implemented with clarity, structure, and accountability, can convert underutilized assets into enduring community value. 

As Bibler cautions: “Too many ornaments on the Christmas tree can derail a project.”

Cities must strike a balance—ambitious enough to inspire impact, yet realistic enough to attract partners and maintain momentum. 

Public-Private Partnerships are increasingly central to how municipalities and transit authorities fulfill civic objectives. By integrating public sector leadership with private sector expertise, P3s establish sustainable frameworks for housing, transportation, and community reinvestment. 

For local officials, the optimal approach is to study successful models—like those of San Diego and Metro—and tailor strategies to meet their unique civic challenges. 

Explore more insights and watch the full recording here.