Workshop 6Funding and Finance
Green Growth : New Shoots10th May 2012 – Sheffield UK
Stefan KreutzHafenCity University Hamburg HCU
Green Growth : New Shoots10th May 2012 – Sheffield UK
Benefits and values of quality open spaces are manifold:
• Social values• Environmental values• Economical values• Cultural values• …
Investments are necessary to create and to use these benefits/values and to secure them in the long-run –that’s what place-making and place-keeping is about
Green Growth : New Shoots10th May 2012 – Sheffield UK
Funding and Finance in place-keeping
Modes of funding maintenance and operation of open spaces and the need to secure long-term financial resources to safeguard the values of open spaces, i.e.
• Capital - to pay for one-off improvements, construction, renovations and equipment
• Revenue (or operating funds) - to pay for general maintenance and staffing
Green Growth : New Shoots10th May 2012 – Sheffield UK
Sources of Funding – The Public Sector
• Several public levels: city, region, federal, European• Lack of guaranteed funding – pk is not a statutory task• Competition between city departments and
infrastructures, e.g. education, fire, culture, sports etc.• Danger of “zero-sum games”• Procurement regulations, tendering processes and
contractual arrangements• Influence of political decisions
Green Growth : New Shoots10th May 2012 – Sheffield UK
Sources of Funding – The Private Sector
• Open Space as a public good and a public asset – but also sometimes as private property
• Open Space has an influence on property values• Private funding of open spaces: individual donors, public-
private organisations, foundations, businesses, proprietors
Green Growth : New Shoots10th May 2012 – Sheffield UK
Sources of Funding – The Third Sector
• Community organisations or charities• Voluntary work of community groups and individuals• Investment of money, time, know-how etc.• Not on a strategic or citywide level but with a focus on
single open spaces
Green Growth : New Shoots10th May 2012 – Sheffield UK
Key issues of Funding and Finance
• Valuation of open space and the direct and indirect effects, e.g. impact of open space quantities and qualities on property values
• Calculation of long-term running place-keeping costs (consequential costs) from the beginning, e.g. “whole-life-costing” approach: information on the maintenance and replacement costs over lifetime
• Co-production from planning to maintaining
Green Growth : New Shoots10th May 2012 – Sheffield UK
Recommendationsfor Funding and Finance
• Long-term management as an integral part of place-making processes
• Transparency of public sector activities• Multiple stakeholder approach (“open
space as a joint responsibility”)• Regulations for multiple funding
Green Growth : New Shoots10th May 2012 – Sheffield UK
Experience from the MP4 pilots
• Plans and agreements shall include long-term management from the beginning
• Co-production of open spaces requiresco-management and co-funding of PK
• A mix of sources enhances the responsibilities of several stakeholders for place-keeping (“You take care of what you pay for”)
• If budgets come from several sources, one loss might put the whole budget at risk
Green Growth : New Shoots10th May 2012 – Sheffield UK
Green Estate Sheffield / UK
Business and Neighbourhood Improvement Districts Hamburg / Germany
Emmen Revisited / Netherlands
Green Growth : New Shoots10th May 2012 – Sheffield UK
Place-keeping is not only about funding – but without secured funding there is no place-keeping!
Open spaces need secure funding for long-term maintenance and management to safeguard their qualities and benefits - but regular public budgets are no longer sufficient.
Beside multiple-funding from public sources private investments in open spaces "on top" of public activities are becoming more and more essential.
Green Growth : New Shoots10th May 2012 – Sheffield UK
Key Questions
• What kind of regulations and rules are necessary for mixed-funding from multiple stakeholders?
• How can economic benefits of open spaces be used for the funding of place-keeping?
• In the current climate are we able to deliver big bold visions or do we need to focus on more everyday basics?
Green Growth : New Shoots10th May 2012 – Sheffield UK
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