Capital formation. Liquidity requirements for construction. Risk-reduction. Developers and governments alike all know these issues intimately as they work today to create opportunities and serve communities. We read often of what many call "The New Normal," which simply means that what was taken for granted in the developer industry 24 months ago no longer exists.

Cheap and easy money for new projects and construction is gone. Putting together a traditional commercial loan package for needed developments and improvements in any given community or region can represent a seriously complicated challenge. With state and local governments wrestling with lower revenues and cutbacks, how can any community or region advance its goals during this time of adjustment?

Many federal and state officials are turning to a tried and true solution: public-private partnerships. Indiana is no stranger to those types of partnerships, as the skylines of many Hoosier cities host silhouettes of hospitals, sports facilities, administration buildings and technology parks that sprang from the creative combination of commercial and government assets.

Today, many federal agencies look to directly partner with commercial developers and professionals on a scale rarely seen. Brian McGowan, the U.S. Deputy Secretary of Commerce for Economic Development, recently called for stronger and closer ties between government at all levels with experts and professionals in private industry. Such ties, he said, will achieve more in job creation, better service to communities and broader economic growth than either sector could achieve on its own.

With its enviable current fiscal position, Indiana sits in a place where an expanded strategic focus on new public-private partnerships - where a situation develops that deploys the best of both sectors - can help propel Hoosier communities and regions toward common goals.

In their best form, public-private partnerships (often called P3s) reduce risk, secure development capital at reasonable rates and provide a high return on investment for taxpayer and developer alike. Communities can effectively meet the needs of their residents while otherwise sub-optimized commercial resources are efficiently put to work.

In effect, a true public-private partnership represents a joint venture between two largely different entities. Governments draw on low-risk and "patient" capital with direct oversight to unleash collaborative enterprises. In typically a high-profile environment, they mutually share both risk and reward.

Energy development and infrastructure improvements today represent such partnerships, yet these sectors are but a small portion of what can be achieved. Numerous opportunities exist for such benevolent joint ventures in the healthcare arena, particularly for those facilities and institutions which require a high degree of specialization. In this particular example, the highly specialized needs of any given segment of American society – from seniors to infants - can be creatively, effectively and sensitively met through a carefully planned and executed P3 joint venture.

The commercial side of a P3 may bring proven experience, new technology, a seasoned workforce and savvy expertise to such a joint venture. The government side may bring "patient," long-term capital, high-profile oversight to protect public interests and legal authority required to faithfully execute a project properly. Both sides must be balanced to achieve a true win with a focus on real collaboration and zero exploitation.

As Indiana and the nation continue to recover and to build a "New Normal" way of sound operations in business and government, a fresh look at the resources available in a public-private enterprise may well provide Hoosiers with much-needed improvements and facilities for real growth.