Private Meets Public: Rick Caruso’s Vision for Rebuilding Los Angeles

In the wake of devastating wildfires that destroyed an area two and a half times the size of Manhattan, Los Angeles faces the monumental task of rebuilding communities with varying socioeconomic backgrounds. Real estate developer Rick Caruso believes the solution lies at the intersection of public service and private enterprise—a space he has navigated throughout his career.

“What Steadfast does is a nonprofit but on the private side we populated it with people who are donating their time and their talent, the best in individual industries, to roll up your sleeves, come in and solve critical problems with a level of innovation and speed that generally the government doesn’t have at their disposal,” Caruso explained in a recent interview with Stanford Graduate School of Business Professor Brian Lowery.

Caruso, who founded Steadfast LA to aid in the recovery efforts, brings a unique perspective shaped by decades straddling both worlds. His public service began at age 26 when Mayor Tom Bradley appointed him commissioner to the Department of Water and Power. He later served as police commissioner, making difficult decisions during racially tense periods following the Rodney King incident.

“I think what made my public service role effective or more effective was the fact that I also had experience in the private sector along the way,” Caruso noted. “The intersection of those two things, public and private, bringing that to service of the city, was really rewarding for me.”

This dual perspective has informed his approach to the current crisis. The rebuilding effort requires tailored strategies for different communities—from affluent Malibu to moderate-income areas of Altadena. “What we’re doing to help get those people back into their communities is very different from what maybe a Malibu needs,” he said.

Caruso’s approach challenges the traditional friction between government regulation and private development. While acknowledging that some oversight is necessary, he believes excessive bureaucracy often impedes progress without serving constituents.

“Money is like water. It flows to where there’s the least restrictions and friction,” he explained. “What we’re seeing in a lot of the big cities now that have become tougher to do business in, that money is going somewhere else. And that’s not good for anybody.”

The developer also emphasized the need for accountability in government, particularly regarding disaster prevention. “Had we protected communities and done what was needed, it either could have been completely prevented or certainly the damage would have been mitigated,” he asserted.

Despite his frustrations with government inefficiency, Caruso remains a strong advocate for public service. His political journey—from Republican to independent to Democrat—reflects his distaste for ideological rigidity. “I believe the greatest thing you can be doing is frankly to be in the middle and reaching out to both sides and finding common ground,” he said.

For aspiring leaders, Caruso’s message is clear: “Public service is amazing. Go do it. It will be one of the most rewarding things in your life.” He credits his early opportunity under Mayor Bradley with changing his trajectory and opening doors throughout his career.

As Los Angeles rebuilds, Caruso’s vision represents a pragmatic fusion of private sector efficiency with public sector purpose—a model that may prove increasingly valuable as cities face complex challenges requiring both innovation and accountability.

“We are there to serve the community that lost their homes and their jobs and to get people back in their community as quickly and safely as possible,” he said. “That is our singular mission.”

Source: Stanford Graduate School of Business YouTube Channel, “Rebuilding Los Angeles with Rick Caruso” interview with Professor Brian Lowery