FINANCE FOR THE FIELD Park and Recreation Department Assets Are Valuable to Potential Partners By John L. Crompton, Ph.D.
N
early all park and recreation departments have a list of desired capital projects that far exceed their available capital resources. The only way some of them will ever come to fruition is if outside capital can be attracted. Private capital can be made available relatively quickly once it is clear there is a reasonable probability there will be a return on the investment (ROI). So, the challenge for a department becomes: What can we offer to make this project a viable opportunity to attract outside investment?
Park and recreation agencies have four major assets that are potentially powerful incentives that can be used as a foundation upon which to build partnerships and attract investment from businesses: (1) a substantial land bank, (2) the ability to access low-cost capital and to raise funds from the tax base, (3) the capacity to convey tax incentives, and (4) control of zoning and permit applications. Successful synergy from collaboration requires fusing the complementary resources of the partners in a project to the mutual advantage of all parties involved. Most of these department resources are “in-kind.” This has the important political advantage of being less controversial than directly committing tax dollars toward a facility.
Land Bank From the perspective of a business, land is a prerequisite for building projects, but it is an unproductive cost. It is not depreciable; it adds to property taxes and it yields no revenue flow. If its cost can be reduced or removed, then it may make an otherwise infeasible project viable. It is common for a substantial portion of a community’s open space to be under the jurisdiction of a park department. The agency could offer some parkland or use of an existing facility to a business under a With the help of private capital, park and recreation departments can complete capital projects that otherwise would not come to fruition. 16
Parks & Recreation
| F E B R UA RY 2 02 1 | PA R K S A N D R E C R E AT I O N .O R G
