Institute for Social Vision Design

5 Park-PFI Success Cases — From Large Urban Parks to Cities of 23,000 Residents [2026 Edition]

ISVD編集部
About 7 min read

For municipal officials: Structural analysis of 5 successful Park-PFI (Public Solicitation Management System) cases. From Kaiseizan Park (Koriyama City) to Kadaru Terrace Kindaichi (Ninohe City, population 23,000), examining preconditions and success factors.

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TL;DR

  1. Park-PFI is viable across municipal scales, from Ninohe City (23,000) to Koriyama City (330,000)
  2. Six typologies of small-scale success exist: regional resource, problem-solving, glamping, vertical, package, and townscape company models
  3. Common success factors across all cases are 'phased sounding' and 'engagement of local businesses'

Overview of 5 Cases

Comparative fact sheets for 5 cases across Koriyama, Mutsu, Ninohe, Beppu, and Hachioji

Five successful cases of have been selected, ranging from large to small parks. These cases demonstrate that the belief "Park-PFI only works for large parks" is mistaken.

For an overview of the Park-PFI framework, see What Is Park-PFI (Public Solicitation Management System)?.

CaseMunicipality (Population)Park AreaOperatorBusiness Type
Kaiseizan ParkKoriyama City (330,000)12.89haDaiwa Lease GroupCafé, bakery, multipurpose
PARK DAIKANYAMAMutsu City (56,000)Mutsu Real Estate Trading CenterGlamping, dining, dog run
Kadaru Terrace KindaichiNinohe City (23,000)2ha (neighborhood park)Kadaru Mirai (SPC)Hot spring, sauna, accommodation, restaurant
Harukigawa ParkBeppu City (110,000)0.92haMinerva (SPC)Supermarket, artificial turf field, café
Takakura Park and OthersHachioji City (580,000)0.25ha × 5Ball play areas

Case 1: Kaiseizan Park (Koriyama City, Fukushima Prefecture)

ItemDetail
ApproachPark-PFI +
Project Period2024–2043 (19 years)
Development CostApprox. ¥700 million (municipality 90% / private 10%+)
Designated Management Fee¥1.44 billion over 19 years (approx. ¥75.87 million/year)
OperatorDaiwa Lease Group (5-company JV: 1 major firm + 3 local companies + 1 management firm)

Structural Success Factors

Three-phase sounding: Market needs were progressively refined through three stages — Trial (social experiment format), Pre-sounding, and Market sounding. An incentive design awarding 5 bonus points in the public tender to Trial participants and 3 points to Market Sounding participants encouraged early engagement.

Major firm × local JV: The combination of Daiwa Lease (national expertise) and three local companies (community ties and construction capacity) received high marks in the evaluation.

Preconditions

  • Core city with a population of 330,000 (high private sector interest in participation)
  • Annual park visitors of approximately 1.4 million (sufficient footfall to support return on investment)
  • Approximately 4-year preparation period from planning to opening

Case 2: PARK DAIKANYAMA (Mutsu City, Aomori Prefecture)

ItemDetail
PopulationApprox. 56,000
OperatorMutsu Real Estate Trading Center (local company)
Business TypeGlamping (trailer house accommodation), dining, dog run
Project Period20 years

Structural Success Factors

Branding strategy: A unique positioning as "northernmost glamping on Honshu." Rather than large-scale facility investment, the use of movable trailer houses kept initial costs low while commanding premium pricing through scarcity.

Local company leadership: Rather than a major general contractor or PPP specialist firm, a local real estate company led the project as representative operator. A proposal grounded in local context successfully revitalized an underutilized park.

Case 3: Kadaru Terrace Kindaichi (Ninohe City, Iwate Prefecture)

ItemDetail
PopulationApprox. 23,000
Park ClassificationNeighborhood park (2ha)
OperatorKadaru Mirai (locally funded, quasi-public townscape company) + SPC
Business TypeHot spring, sauna, accommodation, restaurant, indoor pool
AwardJapan Society of Civil Engineers Design Award 2023, Excellence Prize

Structural Success Factors

Utilization of local resources: The project integrated the replacement of an aging municipal hot spring facility with Park-PFI. By positioning the hot spring — a locally distinctive resource — as the primary revenue driver, financial viability was achieved even in a town of 23,000.

Local investment model: With a locally funded townscape company at the core of the SPC, the structure ensures that money circulates within the community. This model of not depending on external capital has high replicability for small municipalities.

What this case demonstrates: Park-PFI is viable even in municipalities of around 20,000. However, the prerequisite is the presence of a strong local resource such as a hot spring.

Case 4: Harukigawa Park (Beppu City, Oita Prefecture)

ItemDetail
AreaApprox. 0.92ha (under 1ha)
OperatorMinerva (SPC) = Local sports club + local retailer
Business Type1F: Supermarket; 2F: Artificial turf field + café
Annual Municipal RevenueApprox. ¥14 million

Structural Success Factors

Overcoming constraints through vertical design: The challenge of a 0.92ha narrow site was resolved by stacking uses vertically (1F commercial / 2F sports). The project also generated media attention as the first multilevel urban park in western Japan.

Agility of local SPC: A sports club and retailer formed an SPC, integrating each party's core business with the park operation. The self-contained local structure enhanced financial viability without relying on major firms.

Case 5: Takakura Park and 5 Other Parks (Hachioji City, Tokyo)

ItemDetail
Park ClassificationNeighborhood park (0.25ha) × 5 parks
Business Type"Ball-play areas"

Structural Success Factors

Packaging: Five neighborhood parks of 0.25ha — individually too small to be financially viable — were combined into a single project, creating a scale sufficient for private sector entry. A conceptual shift overcame the structural constraint.

Six Typologies of Small-Scale Success

Regional resource, problem-solving, glamping, vertical, package, and townscape company models

Analysis of the 5 cases reveals six typologies of successful Park-PFI in smaller parks.

TypologyRepresentative CaseCore Logic
Regional ResourceKadaru Terrace KindaichiSecure a primary revenue source through location-specific resources such as hot springs
Problem-SolvingYanagimachi Children's Park (Mutsu City)Use social infrastructure (childcare) rather than food and beverage as the revenue facility
GlampingPARK DAIKANYAMALow investment, strong branding, premium pricing even in regional areas
VerticalHarukigawa ParkResolve narrow-site constraints through multi-level design
PackageTakakura ParkConsolidate multiple small parks into a single project
Townscape CompanyKadaru Terrace KindaichiLocal investment SPC ensures money circulates within the community

Precondition Comparison and Structural Analysis

Comparative framework and extraction of shared success factors

Two structural success factors are common across all 5 cases.

1. Phased sounding: The three-phase approach at Kaiseizan Park is emblematic, but in all other cases as well, some form of dialogue with the private sector took place before the public tender. There are no successful cases in which "going straight to public tender" worked.

2. Engagement of local businesses: In 4 of the 5 cases, local companies serve as the JV representative or core entity. Creating a structure in which local businesses are involved and local money circulates is the key to sustainable project operation.

For these success factors to function, however, the preconditions described above — footfall, local resources, preparation time, and private sector interest — must be in place. Copying only the "approach" of a case without matching preconditions will not produce the same result.


There is much to learn from these cases, but whether the same can be achieved at your park is a separate question. The necessary first step is to accurately assess the preconditions for your park: Is there sufficient footfall? What local resources exist? Will private operators participate?

ISVD provides free support for the early stages of Park-PFI implementation, from design to project scheme development.

References

Public Solicitation Management System (Park-PFI) (2024)

Park-PFI Case Studies for Small-Scale Parks (FY2024 Workshop) (2024)

Kaiseizan Park Park-PFI Project (2022)

Related Consulting & Support

PPP / Public-Private Partnership Support

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Questions to Reflect On

  1. Which of the 6 typologies most closely resembles your park?
  2. Is there an environment where a local company could take the lead in a JV?
  3. If you conduct sounding, can you identify any operators likely to participate?

Key Terms in This Article

Park-PFI
A system under Japan's Urban Parks Act that publicly solicits private operators to develop and manage revenue-generating facilities (e.g., cafés) alongside park facilities. Established by 2017 law revision with up to 20-year permits.
Sounding (Market Survey)
A dialogue-based market survey conducted before public tender to gather private sector opinions and ideas on utilizing public assets. Used to pre-validate feasibility and appropriate conditions.
Designated Manager System
A system under Japan's Local Autonomy Act that allows private operators and NPOs to manage public facilities. Introduced in 2003 to improve efficiency and service quality, though typically short designation periods (3-5 years) can hinder long-term investment.
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