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Parks & Economics/Financing

Millenium Park, Chicago, Photo: Ben Welle

How much value does a park system bring to a city? How do I find funding for my city parks? These are two questions that the center conducts on-going research into and works with cities to answer, primarily through the following two intitiatives.

I. Economic Value of Parks

Urban analysts and park advocates, housing proponents, park directors, mayors, city councils, and chambers of commerce, need solid, numerical motivation to strategically acquire parkland in balance with community development projects. Research is clear-successful communities have green space - parks - for recreation, health provision, tourism, sunlight, rainwater retention, air pollution removal, natural beauty, and views. The center contracted with six economist teams to construct formulas for the following factors on how greenspace makes for successful communities, and is puting these formulas to work in cities.

Clean Air: The value of air cleansing by trees.
Clean Water: The value of water retention by vegetation and soil.
Park User Happiness: The money users save by not having to purchase recreational opportunities from private providers.
Park User Healthiness: The money users save on doctors, hospitals and pharmaceuticals by being marginally healthier from exercising in parks.
Individual Neighbor Wealth: The increase in property value from approximation to a park.
Total Community Wealth: The increase in sales and tax revenue from park-related tourism.
Neighborhood Social Capital: The value of time and money donated by residents to parks in the city.

Economic Value Reports. The Center has put these calculators into action and is preparing reports for individual cities on the economic value of their park systems. The first report to be released is from a study of the Philadelphia park and recreation system, and can be viewed here. Measuring the different values associated with park systems is helping us better understand such factors as the impact of population density around park edges, the relative value of housing versus commercial uses near parks, the benefits of different kinds of park uses and programming, the magnitute of parks contribution to public health, the ability of different park features to generate tourism and tourist revenue, the relative ecological benefit of forested land versus meadows (and of stream-valley versus non-watershed parks) and much more.

The Economic Return on Park Investements. In this speech in Chicago, TPL President Will Rogers discussed how great cities have great park systems and how cities all over the country are leading with public realm investments to become more competitive, to attract the right demographics and to achieve their economic development and quality of life goals. View the speech here.

II. Funding City Parks

Finding the silver bullet to fund your city park system is impossible, but there are an array of financing tools available to communities. The center tracks the funding sources used for both capital and maintenance for parks.

Developer Exactions/Impact Fees for City Parks. Many communities require developers to donate land or pay in-lieu fees for the acquisition of parkland. Twelve cities were the subject of a six-month study and report on such regulations. 15 pages. (2005)

Local Parks, Local Financing Volume One. Increasing Public Investment in Parks and Open Space Volume 1 of Local Parks, Local Financing. Written by TPL consultant Kim Hopper, this volume of TPL's park funding report discusses the financial tools communities use to create parks, protect open space, and support recreational facilities. Includes examples. 22 pages. (1998)

Local Parks, Local Financing Volume Two. Paying for Urban Parks Without Raising Taxes. Written by TPL's Peter Harnik, this volume of TPL's report on park financing focuses on funding techniques beyond traditional tax allocations. 22 pages. (1998)

Partnerships for Parks. Visit the center's webpage on how private partnerships can work to create and maintain excellent city parks.

(See also the Center for Conservation Finance for more information on efforts to fund parks, with special attention to referendums)

Updated 8/2008