Municipalities have set up private corporations to run quasi-public businesses like companies. Cobourg has set up Holdco this way. Here is an article on why and some of the pitfalls.
Here is an extract from the article:
“They were supposed to be outside of government, yet beholden to it. They could act like private business, but with the power of government in the name of public interest. They were supposed to be efficient and nimble—but had access to public money. Most of all, they lacked public oversight and accountability.”