Changing the Nature of Core Industry through Partnership among Multiple Stakeholders

Partnership among governments, private companies, academia and citizens was key to the success for Kitakyushu’s Eco-Town. Public and private sectors collaborated to establish the recycling industry even before the launch of the Eco-Town Project in 1997. For instance, a steel company, which later became one of the main companies in the formation of the Eco-Town, transformed their old-fashioned business to a new complex industrial structure including recycling. It collaborated with the city and other private entities in order to commercialize the business and recycle PET bottles. Therefore, when the policy of the national government for the Eco-Town Project and a sound material-cycle society were announced, Kitakyushu City welcomed this development and was in a good position to begin. The city also has collaborative partnership with research institutions that provides new methods and technologies for Eco-Town projects and waste management. Endorsement by the citizens to the project is another critical factor for sustainable project implementation.

  • Aligning the different interests of multiple stakeholders to pursue a common goal
  • National programs on Eco-Town development that provide subsidies to local initiatives
  • Cooperation network among citizens, local governments and companies 

A premature market of recycling products calls for public initiatives to expand the new industrial cluster. On the other hand, cutting-edge technologies and knowledge of private companies are vital factors for innovative activities on recycling, which enhance both corporate profit and public interest. Thus, building close partnerships among governments, private companies, academia and citizens contributes to materializing the idea of a sound material-cycle society.

Utilization of Existing Technologies and Infrastructure Systems

Kitakyushu City could benefit from the old industrial cluster with technologies, infrastructure, and logistic systems refined during the previous industrial development era in the town. These existing assets were adapted to or repurposed for new recycling industry. There was also a demand nearby the town for recycled goods, which did not have to be transported over a long distance. As a result, transaction costs for the location of the recycling facilities has declined because the recycling industry is concentrated in the Eco-Town.

  • Accumulated resources and infrastructure for industries;
  • Vast land and facilities available for industry and waste treatment in Hibikinada.
  • Variety of basic technologies that can be adapted for recycling
  • Geographical proximity to the market of recycled goods

Many technologies, infrastructure, and logistic systems in the nation have been refined during the previous industrial development era. These with abundant recourses of knowledge and expertise have formed industrial agglomerations on vast land available at the time in suburbs. To meet current social and economic needs, these established ecosystems are possibly altered to clusters of next-generation industries like recycling industry and Eco-Town.

Public Sector Guidance Coupled with Private Sector Initiatives

To address a social need for transportation facilities equitably accessible, understandable and usable to people of all ages and abilities, the national government enacted a law to promote smooth transportation to the elderly, disabled and others in 2006. It set a target to adopt the concept of Universal Design by 2020 for all public transportation facilities, including airports that serve more than 3,000 daily passengers. Under this law, the government developed “Universal Design Guideline”, which is also applicable to improvement of Haneda International Airport. Not only did TIAT follow this guideline, it as a private company made extensive efforts to offer a comfortable space and enhanced accessibility to all types of airport visitors.

  • Strong drive from the national government to consider universal accessibility in infrastructure design

  • Detailed guidelines to develop universally accessible infrastructure

A key tenet of the philosophy of Universal Design is that the facility improvements needed to support people with disabilities can benefit everyone. Increased physical accessibility and hospitality satisfy customers with the high-quality of services and contribute to increasing the number of airport users to some extent. While the national government plays a pivotal role in adopting the Universal Design concept in public transportation facilities, private terminal operators should be motivated to proactively install innovative technologies and unconventional services for long-term cost saving and customer (passenger) satisfaction.

Integrated Access to and from Urban Centers

The design of the airport itself is half of the success equation - how to ensure seamless door-to-door travel experience for various people including the elderly and disabled is a key. Haneda International Airport Terminal is directly connected to the city’s major urban centers by two railway companies. When the new terminal and stations were built, TIAT and these two railway companies collaborated to get rid of physical barriers across facilities for people with mobility disadvantages. For example, a hall in the terminal allows passengers to directly access to departure/arrival lobbies, public transportation services (e.g., Monorail, railway, buses, and taxies) and a car parking area via flat and straight paths. Several large-size elevators set in the station can also carry a large volume of passengers between the platforms and the arrival/departure floors. A railway line redirected the guideway from the existing platform at the domestic terminal to the second floor of the international terminal to produce flat passenger access from the station to the departure lobby. In addition, the both railway lines introduced movable step boards that bridge train vehicles and platforms for wheelchair users, and platform screen doors for passengers’ safety.

  • Coordination of facility design with railway companies providing access to the airport

Integrated access design between an airport terminal, ground transportation systems, and urban centers is critical for travelers with disabilities. In particular, it is essential to eliminate all types of level differences and floor gaps that can cause stress and hamper passengers from having seamless door-to-door travel experiences. Incorporating a centralized hall into the terminal benefits all users, as it enables smooth transfers among different transportation modes with barrier-free paths and, in turn, mitigates pedestrian congestion at airports.

Thoughtful and Interactive Design Process

The universal design committee organized approximately forty universal design workshops and reflected the opinions collected from a wide range of users to the detailed drawing of the terminal. The members also visited existing airport facilities and used mock-ups to assess the effect of the design plan. As a result of these joint design efforts, the terminal successfully provides seamless access to public transportation, especially railways. It also progressively introduced world-class terminal facilities with the Universal Design concept; Multipurpose toilets, boarding bridges, and versatile concierge service and communication devices exemplify its novelty.

  • Establishing a universal design committee as a coordinating board
  • Organizing universal design workshops that allow governments and private companies to gather more input from airport users into design of facilities.
  • Strong private players (NGOs, community development conference, etc.) active in promoting universal design

Airport terminals require several special facilities related to a series of air travel procedures, such as security checks, embarking and disembarking, immigration, and lengthy waiting times. To increase access to the terminal for everyone, the usability of all facilities needs to be scrutinized and should reflect the voices from a range of actual users.

LONG TERM FINANCIAL MECHANISM TO GUARANTEE THE EFFECTIVE IMPLEMENTATION F THE PROTECTED AREAS’ MANAGEMENT PLANS

With the revenues from the endowment and the investment in the sinking fund, La Minga provides the financial resources to implement the prioritized actions from the management plans. To that end, the members of the Technical Committee decide together what strategies are the most vital to implement, the cost of the activities and the terms of refence for hiring a community-based organization to execute the components.

The donation of the Walton Family Foundation to la Minga will be in the fund for at least 30 years, and therefore this mechanism can guarantee that the protected areas will have financial resources for every year over a long time.

It is necessary to get to the 5 Million USD Goal in the endowment and 1 million USD in the sinking found. Otherwise we won’t have enough revenuers to support the implementation of the management plans of the three protected areas.

These endowment funds are subject to an investment policy focused on generating annual income while simultaneously preserving and enhancing the value of endowment capital through adequate diversification of high quality instruments, balanced by an acceptable degree of risk.

The process of building an endowment and a sinking fund is long and difficult. Most of the potential donors’ can´t give money for a long period (La Minga is conceived at least for 30 years). Also, it is very important to set strict and clear rules regarding the investment of the money, because of different expectations that can emerge in the country.

 

DEVELOPMENT OF A GOVERNANCE STRUCTURE TO GUARANTEE THE STAKEHOLDER´S PARTICIPATION IN THE RESOURCES INVESTING PROCESS

All of the protected areas that are covered by La Minga are managed by Community Councils and the regional environmental authorities. Net interests of La Minga will be transferred to community-based organizations (Community Councils) and other nonprofit organizations to support the implementation of management plans for the protected areas, under the
supervision of an Endowment Fund oversight structure.

A Technical Committee for La Minga directs  and oversees the use of La Minga Endowment revenues that are channeled annually to the account
opened and held by Fondo Acción. The Technical Committee is  composed of representatives from Conservation International Colombia, Fondo Acción, local environmental authorities, Community Councils with participation in the protected area management, and an academic advisor. The Technical Committee reviews and approves annual investment plans
presented by both Regional Environmental Authorities and Community Councils.

The Executive Committee  makes the funding decision in accordance with the recommendations that it receives from the Technical Committee.

A big enabling factor is the transparency required in the governance mechanism and also the need to guarantee the effective participation of the community council´s representatives and of the environmental authorities. Also, the thorough following of the proposals and projects are a key factor for the mechanism to work. And -lastly- is it of high importance to continue with the building capacities process with local stakeholders to ensure that the proposals will be in line with the management plans and the prioritized needs.

We learned that the involvement of the community’s actors is required from the very beginning to obtain an acceptance of the rules and an empowerment of the local stakeholders regarding the management of the areas that they use to satisfy their needs. We also learned, that building this kind of mechanisms requires a lot of time and it´s very important to make that clear with all the allies so they don’t expect the financial support in an early stage.

The consolidation of a co-management mechanism requires that the public entities understand the value of the inputs of the community, and that they are willing to prioritize the investment needs in accordance with the needs of the local stakeholders.

Lastly, it´s important to mention that an endowment can create a lot of false expectations in different actors, and that´s way is necessary to consolidate a communications strategy that can reach national, regional, and local levels.

Land Owners in the Driver's Seat

In the case of Marugamemachi, a community development company manages a range of properties and services (e.g., commercial buildings, housing, tenants, car parking, and community bus operation). In contrast to such companies that in general often hire city officers or private executives to promote and coordinate redevelopment projects, all the staff are business professionals who have rich knowledge and experience in managing commercial buildings. Financially, 95% of the investment to the company comes from the private sector and the rest comes from the local government. This means that the involvement of local government is very limited in the management of the company. Nevertheless, several government subsidy schemes were utilized for the re-development project to reduce the amount of borrowing from banks, which resulted in a reduced financial burden for the land owners.

  • Government's understanding of themselves as "facilitators" "brokers" of the redevelopment initiative
  • Presence of a local body coordinating individual land owners (e.g. Community Development Company in this case - see project overview for details)
  • Professional expertise of a community development company on property and business service

Government financial support is important to implement capital-intensive redevelopment projects to reduce the financial burden and lower the risks for the group of small land owners leading the projects. However, in the case of private-based redevelopment efforts like this particular case, governments should not always be at the centerpiece in the decision-making process. Less government involvement encourages land owners to take initiatives, make immediate decisions, and expedite revitalization at their own risk and expense.

Strong Local Private Initiatives to Revitalize an Urban District

Historically, retailers along old shopping streets are both individual land owners and local business operators. Although a large-scale redevelopment project has a great potential to generate huge benefits to all the stakeholders, these land owners are often less cooperative with each other for protecting their own property rights. In the case of Marugamemachi, this issue was solved by land owners’ decision to lease their land use rights for the redevelopment project while retaining their property rights, with the strong initiative of local land owners themselves. Through this ownership arrangement, fragmented land lots with different owners were efficiently consolidated into a large parcel for redevelopment and leased to a community development company. Then, the company selectively invited new competitive tenants in consideration of a well-balanced mix of business types to make the place more attractive for customers.

  • Local leadership, both from the public and private, to serve as brokers to bring together land owners and various stakeholders 
  • Urban redevelopment law that allows to exchange land rights and also to separate the land use rights from the landownership

It is essential to strongly motivate all owners to redevelop by clarifying both potential project risks and investment returns and tightly unite them by sharing vision and goals of redevelopment. The strong will of local communities for redevelopment and the involvement of experts to support the redevelopment are also key factors for success.

Land Use Incentives

Under a market freehold system, it is not always easy for local planning departments to curb large shopping mall projects and gain control over individual land uses by zoning. When and where traditional planning and regulatory systems are not sufficient to manage land use and shape development, generous incentives (e.g., direct subsidies, tax reductions, and expedited reviews) may be needed to move new residents to the target districts and corridors.

  • Substantial assistance from the city government to provide direct subsidies, tax reductions and expedited reviews

It is critical for local governments to identify major property owners and involve powerful private developers in both capital projects and operation programs that aim to materialize the public vison of building a compact city in a profitable way.