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.

From San Diego’s focus on affordable housing and cultural amenities to WMATA’s 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 WMATA demonstrate that with clarity of purpose, strong frameworks, and accountability, P3s can transform underutilized assets into lasting community value.

Public-Private Partnerships (P3s) are no longer considered experimental. For municipalities grappling with the obligation to provide housing, upgrade infrastructure, and enhance community resilience amidst constrained budgets, P3s have become indispensable instruments for civic reinvestment. By aligning public objectives with private sector expertise, they facilitate outcomes that exceed the capabilities of traditional procurement methods.

The foundation of every successful P3 is clarity of purpose. Projects anchored in well-defined, community-driven goals attract stronger private partners, align public stakeholders, and sustain momentum through political and financial cycles.

As James Birkey, Senior Vice President at JLL, put it: “Define the problem clearly. Like 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 On 48 acres currently home to outdated facilities, the city is advancing a P3 that will deliver 4,250 housing units—including 2,000 affordable homes—along with 16 acres of new parks and open space,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 evident: prioritizing community outcomes—such as housing, public spaces, and cultural anchors—transforms P3s from mere financial transactions into civic reinvestments aligned with public priorities.

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

This framework encompasses the preliminary preparation of sites through zoning and feasibility assessments, the standardization of agreements to diminish transaction costs, and the incorporation of accountability via milestone-based contracts. These structures mitigate uncertainty and broaden the pool of developers willing to invest.

As Nia Rubin, Acting Vice President of Real Estate and Development at WMATA, explained: “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 establishing transparency, the Washington Metropolitan Area Transit Authority exemplifies that well-structured frameworks can harmonize public oversight with private sector innovation, thereby expediting delivery even within the most complex environments.

Both the City of San Diego and WMATA show that P3s succeed when strategic vision and effective execution are harmonized. The City of San Diego exemplifies the community-outcome model, focusing on projects that address civic needs, including housing, parks, and cultural infrastructure. The Washington Metropolitan Area Transit Authority exemplifies the market-readiness model, utilizing repeatable frameworks that mitigate investment risks across various locations.

Although the models vary, the underlying lesson remains consistent: P3s are not shortcuts. They are resilient tools that, when implemented with clarity, structure, and accountability, have the capacity to convert underutilized assets into enduring community value.

As Bibler cautioned, “Too many ornaments on the Christmas tree can derail a project.” Cities must find a balance: ambitious enough to inspire impact, but realistic enough to attract partners and keep moving forward.

Public-Private Partnerships are increasingly integral to the way 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 involves studying exemplary models, such as those of the City of San Diego and WMATA and tailoring these strategies to address their unique civic challenges. Explore more insights and watch the full recording here.