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This study illustrates the benefits of public-private partnerships in creating public corporations to build sport venues. In addition to potential returns, public officials' understanding of the potential structures of these authorities is equally important. Additionally, as the scope of public-private partnerships broadens, it is essential for administrators of secondary and higher level education to recognize the benefits of and understand the structure of these partnerships. This study presents the structures of four authorities and the details of the sport-related partnerships they entered. The authorities include the Gateway Economic Development Corporation of Greater Cleveland, Indianapolis Capital Improvement Board, Frisco Economic Development Corporation, and Detroit Downtown Development Authority. In each instance, individual outcomes were analyzed. This paper illustrates the range of responsibilities that could be assigned to authorities and the potential for benefits to be generated for teams, cities, universities, and school districts. The results from each partnership reflect the structure of the public authority. To protect the public's interest, the legislation creating a new public corporation must clearly outline its objectives, structure, and responsibilities. But when cities, universities, and school districts utilize authorities for sport-related development projects, the opportunities for achieving public policy goals are more expansive than many realize.
Public-private partnerships created for the purpose of building venues for professional sport teams have been a staple of public administration for decades (Turner, 2002). At the cornerstone of these partnerships lie independent public authorities, development corporations, or special districts created for the purpose of facilitating the financing and management of professional sport facilities. In certain cases, authorities have the responsibility to leverage the assets to enhance real-estate development and produce revenue. These independent authorities are often necessary, as there are limits on the amount of debt local governments can assume; their purpose is to reduce the stress on governmental units' borrowing capacities. In the past 2 decades, the range of participants in these partnerships has broadened to include school districts and universities (Patrinos & Barrera-Osorio, 2009). As the use of public-private partnerships persists and expands, it is important for community leaders to understand the implications of authorities' structures and their potential benefits.
An authority's structure determines the actions it may undertake. To achieve the goals set by public officials, authorities must consider advantages and...