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Balancing the “Private” in a Public-Private Partnership: Orange County Great Park

Recently I talked with Mike Ellzey, the Chief Executive Officer of the Orange County Great Park Corporation, the nonprofit public benefit organization charged with the design, construction, and maintenance of the Orange County Great Park in Irvine, California. We spoke soon after the city struck a new deal with the project’s related housing developer that puts the park back on solid ground after the 2008 real estate crash and the state’s dissolution of its redevelopment agencies threatened its completion.

OCGP2The Orange County Great Park is the official name for the park portion of a reuse plan for the decommissioned Marine Corps Air Station, El Toro, in Irvine, California. The 2002 voter approval for this very ambitious project ($1.4 billion budget) – after 3 previous initiatives failed – envisioned a team of partners to bring off the project, including a public nonprofit corporation charged with the design, construction, and maintenance of the Orange County Great Park.

Following the annexation of the property by the city of Irvine in 2003, the Navy held an online auction for the El Toro property. Miami-based Lennar Corporation purchased the entire property for $650 million and entered into a development agreement with the City of Irvine. Under the terms of the development agreement, Lennar was granted limited development rights to build the Great Park Neighborhoods in return for land and capital – $200 million – to allow the construction of the Great Park. Continue reading

Paradise Built on a Parking Lot

Each month, City Parks Alliance recognizes a “Frontline Park” to promote and highlight inspiring examples of urban park excellence, innovation, and stewardship across the country. The program also seeks to highlight examples of the challenges facing our cities’ parks as a result of shrinking municipal budgets, land use pressures, and urban neighborhood decay.

Santa Monica, CA
Built on the site previously occupied by the RAND Corporation’s headquarters and more recently a surface parking lot, Tongva Park and Ken Genser Square (once collectively known as the Civic Center Parks) encompass 7 acres in the heart of Santa Monica. The completion of these parks represents the first step toward completing a plan for the 67-acre civic center area, which re-envisioned the area as a vibrant neighborhood with improved linkages to the Santa Monica Pier, Palisades Park, downtown Santa Monica and Santa Monica State Beach.  Continue reading

Managing Water Conservation in Southern California Parks (Part II)

By Catherine Nagel, Executive Director, City Parks Alliance

Continued from “The True Stars of Southern California (Part I)”

For more than a decade, California has experienced drought conditions and Los Angeles has not been immune:  the city’s rainfall has been below average for seven of the last nine years.  A number of the parks featured in the City Parks Alliance 2013 Summer Parks Tour are exemplary for their ecologically driven design and management.  Three are described below.

Echo Park 10The iconic Echo Park in Central Los Angeles recently reopened to the public after a $45 million, 18-month renovation that includes stormwater management upgrades to the 150-year-old reservoir as well as restoration of historic structures.  Although no longer holding drinking water, the lake has been re-engineered to function primarily as a detention basin in the city’s storm drain system.  A portion of California’s Proposition O Clean Water Bond provided funding and Proposition K, a half-cent local sales tax for transportation projects, provided $600,000 to help clean up the surrounding park. Continue reading

Los Angeles: Angels in the Parks

Not all angels have wings.  Some are clearly grounded and quietly working in Los Angeles city parks thanks to the partnership between the Recreation and Parks Department (RAP) and the Los Angeles Parks Foundation.  Just over $106 million has been secured to put 50 new parks in the city in the neighborhoods most in need, based on a 2009 RAP assessment that found that many dense areas of the city lacked sufficient park space.

LAPF Logo1Under its 50 Parks Initiative, 53 sites for new parks have been acquired by the city – taking advantage of the real estate downturn and bulldozing foreclosed homes in some cases – and are being developed into parks, playgrounds and recreation areas.  A quarter of the 50 parks are smaller than an acre in size.

“With the addition of the 50 Parks Initiative, about 20% of the parks established during this department’s long history will be the work of the last seven years,” says Barry Sanders, Recreation and Parks Commission President.  One important partner in this initiative has been the Los Angeles Parks Foundation, founded in 2008 and just hitting its stride.

“Probably thirty years of thinking preceded the creation of the foundation,” says Judith Kieffer, Executive Director of the Foundation.  But like many successful start-ups, it took the convergence of some good leaders – including Sanders – and Jon Kirk Mukri, General Manager for the Recreation and Parks Department.  Sanders now wears two hats as head of the Parks Commission and chair of the Foundation.  “Barry is absolutely the right person for the job – and probably the only one who can make this dual-hat role work,” says Kieffer.

The Foundation’s mission is all about a partnership with RAP.  They are not leading but listening, doing things with and for the department as a support organization, not a policy advocate with a “distinct and bright line of separation” between them so as to be independent enough to bring real value.  They promote the department, raise funds for parks and develop a broader constituency for the fate of public parks.

It Takes Two
“We have a good working relationship and we communicate constantly – one of the keys to making our partnership work.”

It worked well when the Republic of Korea came to the Mayor with a request to restore the Korean Friendship Bell, a gift from the Republic to the city in 1976.  The bell sits high on a hillside in Angel’s Gate Park and had become so rusty that it had stopped ringing.  Korea wanted to provide funds so that the bell would be fixed. The Foundation accepted the funds and then hired an expert to repair the bell which now once again rings for ceremonies and services.

LAPF Photo 2Typically there is some re-energized interest in projects that drive their joint interest; there is no formal priority setting.  The Foundation receives donations designated for a specific purpose that the RAP is interested in and the Foundation acts as a record-keeper.  In other cases, they will take the lead and take on the role of general contractor while working closely with the department. They have helped to construct huge projects, especially ones that have been in the system for years lacking the funding to move forward – and including the 50 Parks initiative.

The 50 Parks Initiative was generated by the department and may be the largest urban park expansion in the country.  RAP spearheaded all the initial fundraising and the Foundation supported them.  Together, everybody was cranking to find sources of funding from numerous public and private not for profit sources.  The Foundation hosted meetings with major donors and local banks; teamed with RAP while they pitched the idea to other city agencies, like Housing; and secured funding from philanthropic foundations that only give to nonprofit corporations.

As of May of this year, 45 sites are now publicly owned and ready to be developed as parks.  RAP has built 13 of the sites already.  Once again, the Foundation plays a role in helping with site development, often taking possession and then hiring a contractor to build, working with the city at every step.  “We get a right of entry from the city to take ‘temporary ownership’ of a park, hire developers, get the park built and then turn the site back over to the city.”

Corporate Partners
One way that the Foundation has provided value is by building a reputation with the corporate community, with new partners stepping up for the parks in big and small ways.  The challenge is to gain their support for not only the upfront capital expense but the long term maintenance of a new facility.  “The sustainability issue is probably the key thing in making the partnerships work. No one wants to do anything that is a downstream maintenance issue for the city.”

So for any capital project or program where the parks department sees a need, the Foundation raises additional funds – as they did for the restoration of the mounted patrol horse unit, where they identified funds for the ongoing need for trainers, feed, vets, etc.  Originally created in the early 1970′s, the Ranger Mounted Unit was established to provide services to the users of Griffith Park’s extensive bridle trails. The Foundation, as one of its first projects, provided the funding to restore the unit and add more horses to the fold.

In another case, the Foundation is raising funds for the planned nature conservancy in Griffith Park and the goal will include a $5 million endowment, thanks to their outreach efforts in helping donors understand the value of an ongoing reserve.

Along with corporate support comes the issue of donor recognition.  The Foundation is finding ways to work with the city on signage that recognizes donors, such as plaques on benches – trying to reflect corporate support without compromising the public park experience.  Recently the city had its first ‘naming’ request and is learning the importance of a program and policies to recognize donors.  More requests are coming, too, from promoters, regarding events in the park that can provide value to both to themselves and the city.

A Business Model Taking Shape
The LA Parks Foundation is small.  They currently have two half time employees who provide help with bookkeeping, communications, the website and membership.  Judith herself works three quarter time.  And this year, a new full time project manager has been hired which they share with the department.

They share that staffer with RAP so both can take advantage of his expertise.  RAP, like many other city park departments across the nation, has seen both cutbacks (30% of their operations budget in the last 4 years) and the retirement of some of its most seasoned staffers.

“Typically we don’t do fundraising for city staffing – this has been a baseline issue for us.  As much as we work well with the department, we know we can’t underwrite their staffing.  We try to be sensitive about the best place we can provide value.”

The Foundation has just crossed the $6.5 million level in fundraising since 2008.  They have exceeded their budget every year since forming as the community embraces the idea of a private entrepreneurial partner committed to the city and its goals for parks.  Their success is linked to a 15-member board that uses its own gifts to leverage more – their giving provides a floor for the Foundation’s operations.  When the Foundation takes on a larger role in construction projects, they work with donors and the city on support for their administrative efforts.

“I also needed to understand and see how the city worked in order to figure out how we could work together,” said Judith. There are no weekly staff meetings between the two organizations, but Judith is talking all the time with the department, and she is out in the parks – a lot.  She also attends meetings with park advisory boards, other city departments, city council members and potential donors.

“We team up all the time and represent each other as needed on the same mission. This integrating of our resources around a common mission has absolutely been the key ingredient to our success.”  The City now embraces the partnership and sees how the Foundation can serve the department – and the staff sees it as a tool for them to have more success around their initiatives. “Everything we do is collaborative; we are hand in glove to get where we need to be.”

As the organization grows and takes on additional projects with the city and with friends of the parks groups around the city, they are looking more thoughtfully at their own future.  “We have always had an annual strategic plan which we revisit regularly with the board.  We are poised for a longer term view to help us identify where the next growth spurt will come from.  The fact that we have exceeded our budget expectations every year – that’s a good sign.”

Lessons learned?  “It was so critical that I work very carefully and slowly to integrate the foundation into the city system; building good relations with the city was key.  We slowly built trust as a reliable partner who wanted to work on their behalf – because the city can take money from donors and offer tax benefits without a foundation.  But RAP knew that money was being left on the table by donors not comfortable with giving money to the city for any number of reasons.”

Los Angeles already has a library and a police foundation.  The LA Parks Foundation is the third of its kind, and one more example of the importance of a private partner playing the role of a go-between, adding value with its flexibility and business-like approach.

KBlahaKathy Blaha writes about parks and other urban green spaces, and the role of public-private partnerships in their development and management. When she’s not writing for the blog, she consults on advancing park projects and sustainable land use solution

December’s Frontline Park

Each month, City Parks Alliance recognizes a “Frontline Park” to promote and highlight inspiring examples of urban park excellence, innovation, and stewardship across the country. The program also seeks to highlight examples of the challenges facing our cities’ parks as a result of shrinking municipal budgets, land use pressures, and urban neighborhood decay.

Orange-County-Great-Park-001

The Great Park Balloon

With its approximate 1,300-acre master plan, the Orange County Great Park is the centerpiece of the redevelopment of the publicly-owned portion of the 4,700-acre former Marine Corps Air Station El Toro. After the military base was decommissioned in 1999, several proposals to redevelop the land were put forward, including an international airport and a new housing development.  In 2002, Orange County voters approved the Great Park project.  The goal of the Great Park is to bring a world-class metropolitan park to Orange County, with a wide range of cultural, social, recreational and educational amenities.  Currently, more than 230 acres of the Great Park are activated or under construction.

Hundreds of thousands of visitors from all over Southern California enjoy the Great Park’s array of recreational and educational opportunities and participate in shared experiences, including panoramic views from the iconic Great Park Balloon that rises 400 feet in the air.  Other popular Great Park features include the Great Park Carousel, Farm + Food Lab, Kids Rock Playground, Walkable Historical Timeline, Palm Court Arts Complex, North Lawn recreation area, 105-acre Great Park Farm and historic Hangar 244.  The Great Park delivers innovative programming that activates all of these features, including free sports clinics, gardening workshops, a weekly Farmers Market, art exhibitions in the Great Park Gallery and an Artists-in-Residence program, as well as other community events. Total attendance and ridership for 2012 will exceed 750,000.

20110428-ocgp-005

Farm Lab

The Great Park’s success with events and programming helped it earn the opportunity to host the U.S. Department of Energy Solar Decathlon 2013.  This award-winning competition challenges collegiate teams to design, build, and operate solar-powered houses that are cost-effective, energy-efficient, and attractive. Hundreds of thousands are expected to gather for the event October 3-13, 2013 at the Great Park, the first time the event has ever been held outside of Washington D.C. The Solar Decathlon 2013 will be the centerpiece of the XPO, a world’s fair of clean, renewable and efficient energy that the Great Park team is developing as a complement to Solar Decathlon 2013.

To learn more about the Orange County Great Park, click here: www.ocgp.org

The “Frontline Parks” program is made possible with generous support from DuMor, Inc. and PlayCore.

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