ETM ASSOCIATES, LLC. Timothy Marshall

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1 Timothy Marshall ETM ASSOCIATES, LLC The Roles and Importance of Friendship Associations Public/Private Partnerships in the US Public Private Partnerships Play Many Roles in the US City wide efforts Multiple Parks One Park Each has a specific Mission Non-Profits in the US A 501(c) organization, also known as either a 501(c) or a "nonprofit", is an American tax-exempt non profit organization. Section 501(c) of the United States Internal Revenue Code that identifies types of nonprofit organizations exempt from some federal income taxes and set out the requirements for attaining such exemptions. Donations made to a tax-exempt nonprofit organization may be exempt from personal income taxes. The tax exempt status encourages donations from individuals, corporations, foundations, trusts, etc. 1

2 Before any public/private partnership can succeed there are some important Ground Rules that need to be considered There must be willingness on the part of the public sector to accept a partner, a willingness to share responsibilities and recognition that each party has certain assets and liabilities. Sustained and consistent commitment, particularly by the public sector, is critically important to developing and sustaining a viable partnership. A realistic understanding of the nature and level of private support that can be expected must be developed. Private support is not a substitute for public support, but is in addition to. Public support must remain consistent or, if reduced, it must not be disproportionate because of private support. Operating Models Pros Cons Public Agency/Authority Public/Private Partnership Private Model Types of Operating Models Access to public capital funds Access to public operating funds Access to public sector resources Access to experienced entities with knowledgeable staff Committed and focused Access to private funds Flexibility Not subject to election year cycles Capacity to negotiate beneficial relationships Flexibility Can leverage public and private funding Single focused vision Capacity to negotiate beneficial relationships Able to take long term view Risk of long term sustainability Changing political tides Cumbersome public sector procedures Changes in availability of public funding Overlapping jurisdictional responsibilities with differing perspectives Start up costs Long term commitment for operating funding Requires private funding base Requires other sources of revenue Private control; diminished public control May have limited access to public agencies/staff Subject to changing economic and financial realities There should be some written agreement or MOU between both parties. Example of a public/private partnership organization The promise of the new private/public partnerships is that they will remain flexible and open to new approaches constantly reinvigorated by their mix of governments, businesses, charitable and stakeholder groups, and non profit consultants. Such partnerships present the greatest hope of the urban parks movement. (From: Partnerships: the Key to the Future for America s Urban Parks ) Typical Non Profit Partner Roles: Fundraising Marketing and Public Outreach Programming Organizing Volunteers Design, Planning, and Construction Advocacy Maintenance (sometimes) Security (sometimes) Non Profit Partnering Advantages: Efficiency and Flexibility Building Community Ties Consistent Leadership not subject to election cycles Advocacy Focus on the Long Term 2

3 BUILDING A STRONG PARTNERSHIP RESPONSIBILITIES AND IDENTITY Establish Advisory Committee/Board: political leaders, community representatives, stakeholders, philanthropists, business leaders formal investment of key participants will bolster private fundraising and facilitate efforts. Institutionalize Strong, Consistent and Entrepreneurial Leadership insulated from Public Sector Change and focused on the mission. Effective Non Profit Partner often takes years to develop gradual transition/sharing of responsibilities with Non Profit Partner over time, or at end of establishment period. New park Non Profit Partner can be legislatively, contractually or non contractually created, depending of levels of involvement and responsibilities. Partners should focus on doing what they do best ( Core Competencies ). It is possible to Share Responsibility while Retaining Identity. Front line Tasks and Branding can ensure strong Identity while Sharing Responsibilities. Non Profit Partner roles can include: fundraising, marketing, programming, volunteer management, design/construction, education, advocacy tasks benefiting from flexibility, entrepreneurial spirit, and quick response to changing conditions. Non Profits With City wide Focus Trees for Houston, Houston, TX Houston Parks Board Houston, TX Trees for Houston is a non profit organization dedicated to planting, protecting and promoting trees throughout the city of Houston, Texas. In nearly 30 years, planted over 430,000 trees to benefit the Houston community. Locals can help by planting, donating, and working with the organization Strong educational mission. 3

4 Houston Parks Board is dedicated to creating, improving, protecting, and advocating for parkland in the greater Houston area. Since 1976, HPB has added over 13,600 acres of new park land to Houston s park system and completed capital improvements of $80 million. Is the primary non profit partner to the City of Houston for new parkland acquisition and park capital improvements throughout Houston. Non Profits That Support Multiple Parks Royal Park Foundation London, UK City Parks Foundation NYC, NY National Park Foundation US Royal Park Foundation The Royal Parks Foundation a registered charity established in It helps support London's eight London's Royal Parks As part of its annual fund raising efforts, the Foundation promotes Deckchair Dreams, through which artists donate individual works of art for the canvases of deck chairs which are reproduced and distributed through the Parks. Royal Park Foundation Among the artists and celebrities who have contributed to the scheme are Damien Hirst, Will Young, Antony Worrall Thompson, Tracey Emin, Alexander McQueen, and Raymond Briggs. Deckchairs from the 2008 collection were recycled into sling bags, made by designer Bill Amberg 4

5 City Parks Foundation, NYC, NY Partnerships For Parks City Parks Foundation (CPF) is the only nonprofit organization to create programs in parks throughout all five boroughs of New York City. CPF enriches and connects New Yorkers through free and accessible arts, sports, education and community building initiatives. Catalyst Program Park Academy Volunteer Efforts National Parks Foundation One Park Non Profit Organizations National Parks Foundation is the charity of America s national parks, raises private funds that directly aid, support and enrich America s nearly 400 national parks and their programs. Chartered by Congress as the charitable partner of the National Park Service, the National Park Foundation plays a critical role in: Conservation & Preservation Education Community Engagement Friends of the High Line Central Park Conservancy Discovery Green Prospect Park Alliance Friends of St. Nicholas Park 5

6 HIGH LINE NEW YORK, NEW YORK BRIEF HISTORY Part of a massive public private infrastructure called the West Side Improvement in 1930s. It lifted freight traffic 30 feet above street level, removing traffic from street level. No trains have operated on the High Line since

7 PLANNING AND DESIGN Friends of the High Line (FHL), a community based non profit group, formed in 1999 when the structure was under threat of demolition. The project gained the City's support in South of 30th Street was donated to the City by CSX Transportation Inc. in th 34th Street saved in Landscape architects James Corner Field Operations, with architects Diller Scofidio + Renfro, created design based on community input. 7

8 MAINTENANCE OF THE HIGH LINE The High Line is maintained and operated by Friends of the High Line. Maintenance is a challenge as park is set 20 feet above street grade. e.g. trash removal. Conventional practices will not work on the High Line. MAINTENANCE OF THE HIGH LINE Delivery of materials and supplies and getting them to the High Line level is a challenge. Consideration for deliveries/disposal during design process. Freight elevator has an 11 (3 meters) diagonal length limit. Longer items will require use of a crane and street closures. 8

9 Trash chutes to dispose trash from High Line Mobile stations for ease of cleaning on the High Line. MAINTENANCE OF THE HIGH LINE Maintenance yard space is not available within the park. A temporary solution was employed between Section 1 and Section 2 development. Trailers and smaller containers are used as part of the maintenance yard. 9

10 MAINTENANCE OF THE HIGH LINE CHALLENGES Maintaining the 23rd Street Lawn The 23rd Street Lawn is a favorite gathering space on the High Line. Only open green space in the park. Restoration plays a major role in maintaining the Lawn. The Lawn is closed on Mondays and Tuesdays throughout the busy season, as well as days following heavy rains and high use to allow the grass to recover. This helps keep the Lawn a welcoming green space all season long. MAINTENANCE OF THE HIGH LINE CHALLENGES Equipment Choice of equipment had to be carefully considered. Mobility is limited, but work needs to be done. In its first year, High Line has more than 2 million visitors. A lot of work needs to be done to keep the park clean. Most work is done by hand, supplemented with use of maintenance trikes and smaller equipment. 10

11 Programming is Critically Important safety and use Dance competition Educational program Temporary rollerblading 11

12 ACCESS Access to the High Line is possible via any of nine (9) access points located along the High Line. The High Line is fully wheelchair accessible. Stairs Access Elevator Access GOVERNANCE Friends of the High Line A non profit organization, founded in 1999 by two neighborhood residents, Joshua David and Robert Hammond. They seek to preserve the structure when faced with threat of demolition. Working with the City, the policy favoring demolition was reserved, and ensuring its preservation through the federal Railbanking program. GOVERNANCE Current Governance: City of NY continues to serve as the owner of the High Line. City of NY provides some support. FHL, holds a license agreement with the City, is responsible for its maintenance, operations, and funding. FHL raises more than 70% of the park s annual operating expenses. FHL is working to raise fund to complete the construction of Section 3 and create an endowment for its future operations. 12

13 BUDGET FUNDING CONTRIBUTIONS 30%, or $2M 70%, or $4.7M Estimated annual operating budget is $6.7M Budget is for Section 1 and Section 2 only $3.5M is for grounds maintenance Maintenance is projected to go up to $4.5M Friends of the High Line fundraises more than 70% of its operating budget. Funding comes from grants, donations, and memberships (including merchandises). City provides the remaining 30%. ECONOMIC BENEFITS $4 Billion private investment/ development Architects Row Jean Nouvel, Annabell Selldorf, Neil Denvari, etc. Upscale restaurants 29 new development projects 2,500 new residential units 1,000 hotel rooms 500,000+ SF of office and art gallery space 8,000 construction jobs 12,000 jobs from redevelopment Apartment prices doubled $2,000 per SF Projected $900 million in revenue over next 30 years 1. Whitney Museum 2. Edison Properties, mixed use; public plaza West 20th Street 4. Sherwood Equities West 21st Street 6. Equity Residential th Avenue 8. Hampshire Companies, retailoffice 9. L&M Development Partners and Ekstein Development 10. Related Companies, mixed use CENTRAL PARK NEW YORK, NEW YORK 13

14 The Central Park Conservancy is a private, not for profit organization founded in 1980 that manages Central Park under a contract with the New York City Department of Parks & Recreation. With gifts from individuals, corporations, foundations, and the City of New York, the Conservancy has invested more than $450 million to date making it one of the most successful public/private partnerships in the world. The Conservancy provides 85% of Central Park's $27 million annual operating budget and is responsible for all day today care of the Park. In 1998, the City of New York awarded the Central Park Conservancy a management contract for the continuing maintenance, public programming, and capital restoration of Central Park. Under this agreement, the Conservancy receives an annual fee for services. The minimum Conservancy annual expenditure is $5 million. On April 27, 2006, the contract was renewed for another eight years. 14

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16 Organized and informal events and activities can be found all throughout the park at any given time of the year. The events can range from small to large, counting from less than ten to thousands of people. Street music Rollerblading Artist corner Shakespeare in the Park SummerStage Ice skating Ice sculptures Central Park Tango Concerts Model boats 16

17 Sources of Central Park Revenue Park Revenue Other New York City Contributions DISCOVERY GREEN HOUSTON, TEXAS DISCOVERY GREEN, Houston, Texas Three entities that worked collaboratively to realize the vision for Discovery Green: City of Houston Mayor Bill White initiated the public private partnership to secure the site for the park, City Council approved a contribution of 6.4 acres of land toward the project and $7,900,000 toward acquisition of the remaining 5.4 acres. The City also approved the Conservancy and it will contribute $750,000 annually toward maintenance of the park 17

18 Houston Downtown Park Corporation is a public local government corporation that owns Discovery Green. Others The Corporation has entered into agreements with the Conservancy for development of the park and underground garage and for operation of the park. City of Houston The Discovery Green Conservancy, a 501(c)(3) organization, is responsible for the park's development and now operates the park. It is the first private non profit organization in Houston to be responsible for managing all aspects of a major public park's ongoing operation. The Discovery Green Conservancy has a 50 year contract to manage the park. Restaurant Revenue Conservancy Fundraising Preliminary Discovery Green Organizational Chart 18

19 Prospect Park Alliance, NYC, NY The Alliance was formed in 1987 to restore the Park after years of budget cuts and a steady deterioration of both its natural areas and usage. The Alliance supplements the Park s operating budget with private funds and led the efforts for a large number of capital projects and community programs. The Alliance has boosted public awareness of the crucial role parks play in the urban environment The Alliance has not only been active in the restoration of Prospect Park s physical well being, but also its transformation into an important cultural institution. It was instrumental in the restoration of Brooklyn s only forest thru a trailblazing partnership with the National Audubon Society that resulted in the nation s first urban Audubon Center, which opened in 2002 The Alliance s efforts have increased use of the Park by 300%. The Alliance has focused on the park s natural resources and public/educational programming Friends of St. Nicholas Park, NYC, NY The Friends of St. Nicholas Park is a coalition of residents and community based organizations, working together to revitalize their neighborhood s natural resource. They advocate for an increase in programming, beautification projects, and the over all positive use of the park. Easter Festival Holiday Tree Lighting Coffee Bark Program 19

20 There are numerous small friends groups throughout the US involved with public space. They are small groups that may advocate or support public space through volunteer or small contributions. THANK YOU 20