Deepening Interlocal Partnerships: The Case of Revenue-sharing Infrastructure Agreements

Source: Stephanie D. Davis, Meghan Z. Gough, State and Local Government Review, Volume 51 Issue 4, December 2019
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From the abstract:
….New partnerships between individuals or organizations tend to form when the risk-adjusted expected benefits of collaboration outweigh the expected transaction costs and other costs of collaborating. How can localities, especially urban and rural areas, create or deepen and expand collaborative relationships? What factors are necessary to change localities’ expected costs and expected benefits to lower transaction costs or to raise mutual trust levels so that they begin to collaborate or deepen and expand an existing collaboration?

In this article, we address those questions via two cases of successful interlocal collaboration in a state where deep and extensive interlocal partnerships, such as revenue-sharing agreements, are not the norm—Virginia. To understand the motivation for localities to collaborate on economic development opportunities, we studied the history and context of intergovernmental relations and conducted in-person interviews with elected officials and the city or county managers in each jurisdiction. In each case, the localities changed their views of expected costs and benefits and availed themselves of a long-standing state policy to establish a new level of cooperation…..