CCI's recommendation for charter cities is that it would be best to develop the initial infrastructure buildout of a charter city with private capital rather than with public resources, the idea being that a private developer will be more responsive to market forces and take a long-term view of their investment. So this is one type of cost, let's call them infrastructure costs.
The second set of costs are the resources dedicated to creating and implementing the governance innovation. This is drafting and negotiating legislation or a concession agreeme... (read more)
It's interesting to me that your takeaway is that pushing for governance innovation is cheaper in existing polities rather than newly created polities. If your definition of "cheaper" factors in the cost of building new cities, then I get your point. I think there are good reasons to discount that cost that are discussed in the report, but regardless, do you think there is something unique about German institutional arrangements that allows for cities to better overcome collective action problems? Cities in the US and most (all?) developing coun... (read more)