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Space 134 - The Economics of Cap Parks

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How much does it cost to build and operate a cap park and who pays for it? Explore the funding sources that could make Space 134 a reality.

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Space 134 - The Economics of Cap Parks

  1. 1. $0 $50m $100m $150m $200m $250m Private Public-Private Public HanceMilleniumKlyde Warren $0 $50m $100m $150m $200m $250m $300m $350m Private Public-Private2 Public Hance1 MilleniumKlyde Warren $0 $50m $100m $150m $200m $250m $300m $350m Private Public-Private2 Public Hance1 MilleniumKlyde Warren 1 Includes HR&A estimates for 2014 Hance Park Master Plan redesign. 2 Includes value capture methods. 3 Only deck structure costs. Assumes sustained Federal funding to Caltrans at 2015 levels. Deck Infrastructure Costs and Funding Park Construction Costs and Funding $0 $5b $10b $15b $20b $25b $30b Local/Regional State Federal CaltransTotal California Trans. Funding Space 134 Deck Costs Other 20-Year Federal Highway Funding for California* $92 billion Funds for the deck structure could come from a wide variety of public sources, but will require extensive grassroots efforts to demonstrate Space 134’s wide- ranging community impacts in Sacramento and Washington, D.C. Philanthropy, as in the case of Klyde Warren Park, can kick-start the park development process, and will be essential to creating a high-quality park, as there are limited sources of public funds for open space improvements. In most cases, capital funding requires a mix of public and private funding, with deck infrastructure funded publicly, and the surface park and amenities drawing heavily from private sources. Successful implementation will require local government to leverage public-private partnerships. To revitalize an unsuccessful, publicly-funded freeway cap, an organization in Phoenix plans to privately fund a new signature park. CAPITAL FUNDING PUBLIC RESOURCES PHILANTHROPIC RESOURCES LAYERED RESOURCES California Transportation Funding (2015) Philanthropy as Share of Park (not Cap) Costs Space 134 as a Share of Anticipated Federal Highway Funds for California (2015-2035) Space 134 would be about 0.5% of CA’s Federal transportation allotment over the next 20 years.3 Illustrative Space 134 Capital Funding Proposed Redesign of Hance Park, Phoenix, Arizona 0% 20% 40% 60% 80% 100% R ose K ennedy Y erba B uena H ance Park D iscovery G reen St.Louis C ity A rch M illennium K lyde W arren OtherPhilanthropy $25m $150m Philanthropy Other Federal, State & Local Partner- ships Value Capture $50m $75m $100m $125m $200m Philanthropy & public- partnerships may cover between 20-30% of Space 134’s total capital costs. W W W. S PA C E 1 3 4 . O R G BUILDING A CAP PARK
  2. 2. $0 $100k $200k $300k $400k $500k $600k $700k $800k H ance R ose K ennedy B rooklyn B ridge D iscovery G reen Y erba B uena M illennium K lyde W arren Highly-programmed, signature downtown parks require significant annual operating funding, ranging from $250,000- $750,000 per acre, and earned income rarely exceeds 20 percent of total expenses. Active park elements like cafes and spaces for events can help subsidize a small portion of park operation costs, but it will be important to balance active elements with community-serving passive park spaces. In addition to annual fundraising, private organizational support will be essential to a ensure a high-quality park and to ensure continued maintenance, operations and engaging programming. OPERATIONAL FUNDING EARNED REVENUE ONGOING SUPPORT CAPABLE GOVERNANCE Weighted Average $340k Annual Operating Costs, per Acre Signature Urban Park Operating Resources Philanthropy Earned Income Public (City) Public Klyde Warren Public Millennium Discovery Green 13% 15% 72% 7% 56% 37% 38% 41% 21% Factors for Determining Philanthropic SupportIllustrative Space 134 Earned Income The long-term sustainability of Space 134 will require significant governance and operating resources, which may mean a public-private partnership and continued City support from discretionary or dedicated funds. $0 $100k $100k Cafe FoodTrucks Program s and Events Restaurant $200k $300k $400k $500k $600k $700k $800k $900k $100k Earned revenue from Space 134 may cover between 10-15% of the park’s annual operating costs. Public-private partnerships and earned income may cover between 20-30% of Space 134’s annual operating costs. Millennium Park, Chicago, Illinois $100k $250k $2.5m $500k $750k $1.0m $1.5m $2.0m Earned Income Other Federal, State & Local Partner- ships, and Philan- thropy Value Capture Illustrative Space 134 Operational Funding Regional Philanthropic Capacity Fundraising Ability Park Programming and Amenities W W W. S PA C E 1 3 4 . O R G OPERATING A CAP PARK

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