Mary Scott NabersGovernmental entities are stressed… there is no doubt about that! Ongoing changes under the Trump administration are creating heightened uncertainty, placing added pressure on both public officials across all levels of government and private sector leaders navigating the shifting landscape. However, the number of public projects launching weekly at the state and local levels of government has not diminished.
Most officials at the federal level—elected or administrative—believe that much more outsourcing will occur in the future. There is not a path for that to happen yet, but it appears to be inevitable. Funding cuts will have an impact, of course, but many public sector projects are also being financially supported from other sources like nonprofits, other governmental entities and economic development organizations.
The likelihood that private sector investments in future public projects will increase is almost a certainty. The projects that follow outline how public projects are often critical to multiple stakeholders, thereby resulting in consolidated funding from multiple sources.
Officials in the city of Bakersfield in California have approved an investment of $24 million for a project that will revitalize parts of the Martin Luther King Park. Located in one of the city’s most underserved areas, the park is an essential asset to the community and is in need of modernization and expansion. Funding for the effort will be evenly split between a federal grant and local matching funds.
Plans for this initiative include the construction of a new community center, upgraded sports fields, and modern playgrounds. The community center will be designed to function as a gathering place for activities for all ages in a 16.1-acre complex. This project is part of a broader city initiative which will also upgrade and renovate 10 other parks into safe and attractive public assets. The project is currently in the early planning phase and construction is slated to begin in 2026.
City leaders in Baltimore, Maryland, are planning to alleviate a longstanding problem by connecting several neighborhoods to the downtown area of the city. The communities in South Baltimore have been separated from services, retail, education, food options, health providers and other essential services in the downtown area because of a lack of convenient access.
The project will be supported by numerous interested parties and a federal grant from the U.S. Department of Transportation. The effort will require the rehabilitation or replacement of the Hanover Street Bridge, a 108-year-old drawbridge structure that spans the Patapsco River. Currently, the only way to cross the water is by car. The project’s design will include access for other types of travel, including pedestrians, cyclists and other types of vehicles.
City officials see the project as an economic development effort as well as an opportunity to revitalize the Hanover Street Corridor. The new transportation access to key destinations will not only provide a better quality of life for citizens, but it will also make the area more attractive to retail and other types of development.
The project is currently at the end of the planning phase. The next phase will be solicitations for design and a National Environmental Policy Act consultant. While a timeline for solicitations has not been announced, bid documents are expected in late 2025.
The Western Reserve Port Authority in Ohio has announced plans to remediate and redevelop a 1,000-acre former steel mill site to create a relocation area for large corporations that will be recruited. The site redevelopment project will be funded by several organizations. A $17.2 million economic development grant from the state of Ohio, along with additional financial support from Jobs Ohio, Youngstown Warren Development Partners and the City of Warren will fund the $23.5 million effort.
Components of the project will include site preparation, regional transportation work to develop an industrial access road, and the closure of existing oil and gas wells on the development site. Approximately $15 million will be used to build a truck access road that circumvents the nearby city of Warren. Both state and local officials are interested in the initiative, hoping to attract several large-scale corporations to the site. With environmental work and remediation services still pending, construction is currently slated for 2026.
Securing funding for upcoming projects is rarely an issue when initiatives are well-structured and positioned to deliver meaningful public outcomes. Many public investment funds actively seek opportunities to support large-scale projects that generate clear public benefits. Private sector investment firms have been investing in public projects for decades, and today, regional banks and insurance firms are increasingly funding local projects. Nonprofit organizations also represent viable funding partners when the project aligns with their mission or advocacy goals.
With growing competition amongst investors, interest rates remain favorable. There are financial advisers in every state eager to help public officials negotiate rates, find a private sector investment partner and then assist with developing a repayment model that works for all stakeholders.
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