Funding Public Parks in Tough Times: An Innovation Agenda ......Source: HR&A Advisors and City Parks...
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Funding Public Parks in Tough Times: An Innovation Agenda Jamie Torres Springer February 7, 2011 Image: Flickr user Captain Kidder
Transcript of Funding Public Parks in Tough Times: An Innovation Agenda ......Source: HR&A Advisors and City Parks...
Funding Public Parks in Tough Times:
An Innovation Agenda
Jamie Torres Springer February 7, 2011
Image: Flickr user Captain Kidder
City Parks: Drivers of Civic and Economic Value
The Funding Crisis/Opportunity
Revenue Generation Approaches
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New York circa 1850
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Historically: respite from the harsh city
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High Park, Toronto
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Form follows function: the pastoral aesthetic
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Rittenhouse Square, Philadelphia
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Historically: places for passive recreation
Source: Flickr user Kyle Walton
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Drivers & organizers of tremendous real estate value
Central Park, 1915
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Drivers & organizers of tremendous real estate value
Central Park, present day
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Need for parks has evolved and shifted
“As the city becomes more park-like,
the park becomes more city-like.”
- Betsy Barlow Rogers
Former Executive Director, Central Park Conservancy
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Driving economic growth through quality of life and
amenitization
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The High Line, New York
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Supporting downtown investment and revitalization
Discovery Green, Houston
$30 million construction cost
$850 million+ in local investment
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Restoring community life and vibrancy
Fountain Square, Cincinnati
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Quality of Life Real Estate Premiums City Building
Value creation takes many forms
Local Neighbourhood
Tourism Neighbourhood
Development
City/Regional
Arts & Culture
Park Users
New
H
isto
ric
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Recent innovations: Navy Pier design competition
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Recent innovations: Destination Bayfront
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Recent innovations: Lower Don Promontory Park
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Recent innovations: Queen Elizabeth Olympic Park
City Parks: Drivers of Civic and Economic Value
The Funding Crisis/Opportunity
Revenue Generation Approaches
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Public retrenchment continues apace
Source: Trust for Public Land, 2009-2011
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Denver Minneapolis Dallas
Austin
Detroit
Tampa
Phoenix
-30%
-25%
-20%
-15%
-10%
-5%
0% Denver Minneapolis Dallas Austin Detroit Tampa Phoenix
City Park Department Budget Cuts, 2009-2011
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New parks are more costly
Source: HR&A Advisors and City Parks Alliance, 2011; Trust for Public Land, 2010
$2,800
$57,600
$52,200
$25,200
$25,200
$19,800
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Typical City Park Signature Park
Per Acre Park Operating Costs, 2010
$180,000
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New parks are more costly
Source: HR&A Advisors and City Parks Alliance, 2011; Trust for Public Land, 2010
$2,800
Maintenance, $57,600
Programming, $52,200
Management
Fundraising
Other
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Typical City Park Signature Park
Per Acre Park Operating Costs, 2010
Programming
$52,200
$180,000
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Maintenance,
$57,600
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Diversification creates value
Public funding
Earned Income
Philanthropy
Real estate development
Stable base to leverage economic activity
Park activation
Sense of ownership, engagement
New constituencies to support a park
City Parks: Drivers of Civic and Economic Value
The Funding Crisis/Opportunity
Revenue Generation Approaches
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Best practices in revenue diversification
Public Funding Private Funding Earned Income
General
Fund/Bond
Special
Levy
BID Charge
/Bond Parking
Fees/Bond
Food &
Beverage Events &
Promotions Corporate
Sponsorship Philanthropy
Real Estate
Proceeds
501(c)(3
)
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Stable public base is critical
Government Funding
Time
Reve
nue S
cale
Real Estate
Development
Earned Income
Sponsorship & Fundraising
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Stable public base is critical
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25%
32% 35%
47%
75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Prospect Park, NYC Harbourfront Centre, Toronto
Discovery Green, Houston
Millennium Park, Chicago
Rose Kennedy Greenway, Boston
Public O&M Funds as a Percent of Total
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25%
32% 35%
47%
75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Prospect Park, NYC Harbourfront Centre, Toronto
Discovery Green, Houston
Millennium Park, Chicago
Rose Kennedy Greenway, Boston
Public O&M Funds as a Percent of Total
Stable public base is critical
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Built 1866
Built 1991 Built 2008
Built 2007
Built 2004
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Special tax assessments based on rational nexus
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Minneapolis Park & Recreation Board
Independent authority with dedicated budget (separate from
City general fund)
Governed by elected commission
Issues special assessment on all city property to fund
operations
$47 million in annual property tax revenues supports 67% of
park operations Loring Park
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Bryant Park, New York
4 food venues; carousel; holiday market; skating rink
4 million annual visitors
$2 million generated from restaurants and concessions alone,
accounting for approximately 25% of O&M costs
Fee-based activities and concessions monetize park
visitation and offer valued amenities
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Events generate substantial revenues and drive
visitation
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Austin City Limits, Zilker Park
3 day in-park event, 130 performances
Ticket sales support Austin Parks Foundation
Event reinforces Austin’s music brand
Source: Flickr user ACL Festival
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Adjacent real estate creates constituency
Brooklyn Bridge Park, New York
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Working-class waterfront
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Challenge: waterfront cost increment
EIS Projection
(2004 $)
Landscape O&M $4,475,000
Security and Recreation
Staff
$2,682,000
Utilities and Insurance $1,037,000
Administrative Expenses $1,380,000
Marine Infrastructure $3,600,000
Vehicle Replacement $202,000
Capital Reserve $1,820,000
TOTAL: $15,200,000
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Challenge: limited adjacent constituency
Population Density
(per sq. mi.)
Less than10,000
10,001-25,000
25,001-50,000
50,001-100,000
More than 100,000
Brooklyn Bridge Park Prospect Park
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Real estate development program
$3M provided / $15.2M required
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Private support through naming rights and event
sponsorship
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Millennium Park, Chicago Private donations covered over 40% of the park’s $475 million
construction cost
BP contributed $5 million for naming rights to the BP bridge
AT&T contributed $3 million for naming rights to AT&T Plaza, which
hosts the “cloud gate” sculpture
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Private support through naming rights and event
sponsorship
Stanley Park, Vancouver Following a major windstorm in 2006, which damaged Stanley Park,
Vancouver Parks Board increased its efforts to attract philanthropy
The Board approved a new naming rights policy that enabled
individual and corporate donors to name park features
Regulations to ensure public approval: Board approval of
corporate naming, no logos
Annual contributions increased tenfold to $2.5 million
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Funding sources inform governance
CITY PARK
DEPARTMENT
Public
resources and
management
SPECIAL PARK
DISTRICT
Public
organization
with
dedicated
public
funding or
governance
MUNICIPAL
DEVELOPMENT
CORPORATION
Private
management
of public
and/or park-
generated
resources
FRIENDS’
GROUP
Private
funding and
advocacy
paired with
public funding
and/or
management
FOUNDATION/
CONSERVANCY
Private
funding that
supports
public funding
and
management
Public Funding Private Funding Earned Income
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Funding Public Parks in Tough Times:
An Innovation Agenda
Jamie Torres Springer February 7, 2011
Image: Flickr user Captain Kidder
