workshop 6 funding and finance

Workshop 6Funding and Finance

Green Growth : New Shoots10th May 2012 – Sheffield UK

Stefan KreutzHafenCity University Hamburg HCU


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


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


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


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


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


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


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


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 Estate Sheffield / UK

Business and Neighbourhood Improvement Districts Hamburg / Germany

Emmen Revisited / Netherlands


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.


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?

workshop 6 funding and finance

Documents

new shoots10th

sheffield uksources

multiple funding green

proprietors green growth

risk green growth

workshop funding

values of open spaces

sheffield ukbenefits