Image: Flickr user Captain Kidder. Funding Public Parks in Tough Times: An Innovation Agenda Jamie Torres Springer February 7, 2011
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1 Image: Flickr user Captain Kidder Funding Public Parks in Tough Times: An Innovation Agenda Jamie Torres Springer February 7, 2011
2 City Parks: Drivers of Civic and Economic Value The Funding Crisis/Opportunity Revenue Generation Approaches
3 Historically: respite from the harsh city New York circa 1850 HR&A Advisors, Inc. Funding Public Parks 2 Funding Public Parks 2
4 Form follows function: the pastoral aesthetic High Park, Toronto HR&A Advisors, Inc. Funding Public Parks 3 Funding Public Parks 3
5 Historically: places for passive recreation Source: Flickr user Kyle Walton Rittenhouse Square, Philadelphia HR&A Advisors, Inc. Funding Public Parks 4 Funding Public Parks 4
6 Drivers & organizers of tremendous real estate value Central Park, 1915 HR&A Advisors, Inc. Funding Public Parks 5 Funding Public Parks 5
7 Drivers & organizers of tremendous real estate value Central Park, present day HR&A Advisors, Inc. Funding Public Parks 6 Funding Public Parks 6
8 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 HR&A Advisors, Inc. Funding Public Parks 7 Funding Public Parks 7
9 Driving economic growth through quality of life and amenitization The High Line, New York HR&A Advisors, Inc. Funding Public Parks 8 Funding Public Parks 8
10 Supporting downtown investment and revitalization Discovery Green, Houston $30 million construction cost $850 million+ in local investment HR&A Advisors, Inc. Funding Public Parks 9 Funding Public Parks 9
11 Restoring community life and vibrancy Fountain Square, Cincinnati HR&A Advisors, Inc. Funding Public Parks 10 Funding Public Parks 10
12 Historic New Value creation takes many forms Arts & Culture Neighbourhood Development Tourism Quality of Life Real Estate Premiums City Building Park Users Local Neighbourhood City/Regional HR&A Advisors, Inc. Funding Public Parks 11 Funding Public Parks 11
13 Recent innovations: Navy Pier design competition HR&A Advisors, Inc. Funding Public Parks 12 Funding Public Parks 12
14 Recent innovations: Destination Bayfront HR&A Advisors, Inc. Funding Public Parks 13 Funding Public Parks 13
15 Recent innovations: Lower Don Promontory Park HR&A Advisors, Inc. Funding Public Parks 14 Funding Public Parks 14
16 Recent innovations: Queen Elizabeth Olympic Park HR&A Advisors, Inc. Funding Public Parks 15 Funding Public Parks 15
17 City Parks: Drivers of Civic and Economic Value The Funding Crisis/Opportunity Revenue Generation Approaches
18 Public retrenchment continues apace 0% City Park Department Budget Cuts, Denver Minneapolis Dallas Austin Detroit Tampa Phoenix -5% -10% Denver Minneapolis Dallas -15% Austin -20% Detroit -25% Tampa -30% Phoenix Source: Trust for Public Land, HR&A Advisors, Inc. Funding Public Parks 17 Funding Public Parks 17
19 New parks are more costly $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Per Acre Park Operating Costs, 2010 $2,800 Typical City Park $180,000 $19,800 $25,200 $25,200 $52,200 $57,600 Signature Park Source: HR&A Advisors and City Parks Alliance, 2011; Trust for Public Land, 2010 HR&A Advisors, Inc. Funding Public Parks 18 Funding Public Parks 18
20 New parks are more costly $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Per Acre Park Operating Costs, 2010 $2,800 Typical City Park $180,000 Other Fundraising Management Programming, $52,200 Maintenance, Maintenance, $57,600 $57,600 Signature Park Source: HR&A Advisors and City Parks Alliance, 2011; Trust for Public Land, 2010 HR&A Advisors, Inc. Funding Public Parks 19 Funding Public Parks 19
21 Diversification creates value Public funding Stable base to leverage economic activity Earned Income Park activation Philanthropy Real estate development Sense of ownership, engagement New constituencies to support a park HR&A Advisors, Inc. Funding Public Parks 20 Funding Public Parks 20
22 City Parks: Drivers of Civic and Economic Value The Funding Crisis/Opportunity Revenue Generation Approaches
23 Best practices in revenue diversification General Fund/Bond Special Levy BID Charge /Bond Food & Beverage Events & Promotions Parking Fees/Bond Corporate Sponsorship Philanthropy Real Estate Proceeds 501(c)(3) Public Funding Earned Income Private Funding HR&A Advisors, Inc. Funding Public Parks 22 Funding Public Parks 22
24 Revenue Scale Stable public base is critical Real Estate Development Earned Income Government Funding Sponsorship & Fundraising Time HR&A Advisors, Inc. Funding Public Parks 23 Funding Public Parks 23
25 Stable public base is critical 80% 70% Public O&M Funds as a Percent of Total 75% 60% 50% 47% 40% 30% 25% 32% 35% 20% 10% 0% Prospect Park, NYC Harbourfront Centre, Toronto Discovery Green, Houston Millennium Park, Chicago Rose Kennedy Greenway, Boston HR&A Advisors, Inc. Funding Public Parks 24 Funding Public Parks 24
26 Stable public base is critical 80% 70% Public O&M Funds as a Percent of Total Built % 60% 50% 47% Built % 30% 25% Built % Built % Built % 10% 0% Prospect Park, NYC Harbourfront Centre, Toronto Discovery Green, Houston Millennium Park, Chicago Rose Kennedy Greenway, Boston HR&A Advisors, Inc. Funding Public Parks 25 Funding Public Parks 25
27 Special tax assessments based on rational nexus 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 HR&A Advisors, Inc. Funding Public Parks 26 Funding Public Parks 26
28 Fee-based activities and concessions monetize park visitation and offer valued amenities 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 HR&A Advisors, Inc. Funding Public Parks 27 Funding Public Parks 27
29 Events generate substantial revenues and drive visitation 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 HR&A Advisors, Inc. Funding Public Parks 28 Funding Public Parks 28
30 Adjacent real estate creates constituency Brooklyn Bridge Park, New York HR&A Advisors, Inc. Funding Public Parks 29 Funding Public Parks 29
31 Working-class waterfront HR&A Advisors, Inc. Funding Public Parks 30 Funding Public Parks 30
32 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 HR&A Advisors, Inc. Funding Public Parks 31 Funding Public Parks 31
33 Challenge: limited adjacent constituency Brooklyn Bridge Park Prospect Park Population Density (per sq. mi.) Less than10,000 10,001-25,000 25,001-50,000 50, ,000 More than 100,000 HR&A Advisors, Inc. Funding Public Parks 32 Funding Public Parks 32
34 Real estate development program $3M provided / $15.2M required HR&A Advisors, Inc. Funding Public Parks 33 Funding Public Parks 33
35 HR&A Advisors, Inc. Funding Public Parks 34 Funding Public Parks 34
36 HR&A Advisors, Inc. Funding Public Parks 35 Funding Public Parks 35
37 Private support through naming rights and event sponsorship 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 HR&A Advisors, Inc. Funding Public Parks 36 Funding Public Parks 36
38 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 HR&A Advisors, Inc. Funding Public Parks 37 Funding Public Parks 37
39 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 parkgenerated 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 Earned Income Private Funding HR&A Advisors, Inc. Funding Public Parks 38 Funding Public Parks 38
40 Image: Flickr user Captain Kidder Funding Public Parks in Tough Times: An Innovation Agenda Jamie Torres Springer February 7, 2011
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