Overview of Harukigawa Park
Full picture of western Japan's first three-dimensional urban park. The long-standing challenge of undeveloped land and Park-PFI as the solution
Usage fees and related payments to the city (operator's projection)
¥14M
Assessed by the selection committee, December 2021
Park site area
9,238㎡
Full opening
Dec 2024
Western Japan's first 3D urban park
Beppu City's Harukigawa Park is the first urban park in western Japan to utilize the three-dimensional urban park system. For park land that had remained undeveloped for years despite urban planning designation, the introduction of Park-PFI (Public Recruitment Installation and Management System) enabled park development using private-sector funding and expertise.
This case merits attention for three reasons.
First, the "three-dimensionalization" approach — placing a park on a building's rooftop — achieves both commercial and park functions on limited land. Second, the project is operated by an SPC (Special Purpose Company) led by local enterprises, demonstrating a regional city Park-PFI model that does not depend on major consulting firms. Third, the operator's proposal projects approximately ¥14 million a year in usage fees and related payments to the city, a design that turns the park from a "cost" into a "revenue source."
On December 7, 2024, the western area of Harukigawa Park opened fully, with the artificial turf ground, rehabilitation exercise facility, learning facilities, café, and other amenities entering service.
Three-Dimensional Design
Technical background and Urban Park Act positioning of the first-floor commercial / second-floor park stacked structure
First Floor: Commercial Facility (SuperCenter Trial)
The first floor of Harukigawa Park houses SuperCenter Trial as the anchor tenant.
Of the 9,238㎡ site, approximately 6,000㎡ has been developed as a three-dimensional structure with commercial facilities on the first floor. SuperCenter Trial is a discount store handling daily necessities and groceries, serving the everyday shopping needs of Beppu residents.
Second Floor: Park Functions (Harukigawa Park)
The building's rooftop (second floor) has been developed as the park. The main facility components include:
- All-weather artificial turf ground: Accommodates sports such as soccer and futsal
- Rehabilitation exercise facility: Exercise facilities supporting elderly health promotion
- Multi-purpose studio: Accommodates indoor activities such as dance and yoga
- Learning facility: Space for children's educational support and community activities
- Café and retail shop: Dining and retail for park users
- Management office and changing rooms: Core operational infrastructure
Why "Three-Dimensionalization" Was Chosen
Harukigawa Park's site area of approximately 9,238㎡ is not particularly large. To simultaneously secure revenue through commercial facilities and meet residents' sports and health needs within this limited area, the three-dimensional approach was adopted. In a flat layout, a trade-off would emerge — "adding commercial functions shrinks the park" or "expanding the park eliminates revenue facilities" — but three-dimensionalization resolves this dilemma.
Business Scheme and Revenue Structure
SPC composition, construction cost allocation, and what makes up the projected ¥14 million a year
Unit costs and amounts in financial examples without a cited source are illustrative assumptions, not statistically established market rates. Use estimates and comparable records appropriate to the target facility, location and business when preparing a project plan. Distinguish these assumptions from cited statistics and case expenditure.
SPC (Special Purpose Company) Composition
Development and operation of Harukigawa Park is handled by the SPC "Minerva Inc.," composed of four companies centered on local enterprises.
The composition set out in Beppu City's selection result and assessment is as follows.
| As recorded in the primary source | Entity |
|---|---|
| Representative | Goto System Service Co., Ltd. |
| Member | Minerva Sports Club (general incorporated association) |
| Member | Aoki Shoji Co., Ltd. |
| Member | Nishi Shoten Co., Ltd. |
Beppu City's record gives neither the locations of these companies nor how roles are divided between them. We were able to confirm two things.
- The representative, Goto System Service, is headquartered in Minamitateishi, Beppu City (company website)
- Minerva Sports Club has its office in Shiomi-cho, Beppu City, on the second floor of Harukigawa Park (its own site)
The SPC itself, Minerva Inc., is also registered in Shiomi-cho, Beppu City. The representative is a Beppu company and the SPC is registered in Beppu — a different shape from a project led by a major developer. Counting how many of the four are local, however, would require confirming the remaining two locations against a primary source, which we have not done as of 30 August 2026.
Structure of Annual Usage Fee Revenue
The figure comes from Beppu City's own record. The selection committee's assessment states that "in the price assessment, the committee valued the projection that usage fees and related payments to Beppu City would come to approximately ¥14 million a year under the plan."
This is the operator's projected figure, not what the city actually received. The selection took place in December 2021 and the west area opened in December 2024, so the assessment predates opening by three years. We have found no published record of the amount the city actually received (as of 2026-08-29).
Key aspects of this revenue structure include:
① Private-sector construction cost burden: Construction costs for both the park (second floor) and commercial facility (first floor) are borne by the SPC, significantly reducing the city's initial investment.
② How the usage fees are built: What is charged for what is set out in Beppu City's solicitation guidelines.
| Charged for | Amount |
|---|---|
| Installation permit fee for solicited park facilities (commercial, etc.) | Operator's proposed unit price × permitted area. Minimum ¥1,440/m² per year |
| Land use fee for the three-dimensional urban park portion | Rent derived from an appraised land value (appraisal cost borne by the operator) |
| Occupancy permit fee for convenience facilities | Signage ¥33/day per m² of display area; bicycle parking ¥120/month per m² |
| Installation permit fee for designated park facilities (paths, plazas, restrooms) | Waived once the city confirms they are not operated for profit |
| Profit sharing | When after-tax profit exceeds 120% of plan, part of the excess returns to the city (method agreed with the city) |
If any part tracks sales, it is the profit sharing — and that applies only above 120% of plan. The fee itself is a unit price multiplied by an area.
③ Maintenance cost reduction: The SPC also handles day-to-day park maintenance, reducing the city's maintenance expenditure. The city benefits fiscally from both usage fee revenue and maintenance cost reduction.
Locational Conditions as a Hot Spring Tourism City
Beppu City's demographic trends, tourist numbers, and park user needs analysis
Characteristics of Beppu City
Beppu City is a hot spring tourism city with a population of approximately 110,000 (as of 2024) and annual tourist numbers exceeding 8 million. Known for its "Beppu Hatto" (eight hot spring areas), it ranks among Japan's premier hot spring destinations.
These locational conditions affect Park-PFI in two directions.
Positive impact: Tourist-driven visitor draw
Hot spring tourists may use park facilities and the café. The café and retail shops on Harukigawa Park's second floor have high affinity with the behavioral pattern of "strolling around the hot spring area → stopping at a café for a break."
Negative impact: Seasonal fluctuation in tourism demand
Beppu City's tourist numbers fluctuate seasonally, peaking during the summer beach season and winter hot spring season, with park users declining during off-peak periods. SuperCenter Trial (first floor) serves as a buffer against this seasonal volatility through its steady everyday demand.
Beppu City's Other Park-PFI Deployments
Beppu City has also applied Park-PFI to the Beppu Park East Parking Lot Convenience Facilities Project, making it a "multi-park deployment" municipality implementing Park-PFI across multiple parks. The success of Harukigawa Park appears to have accelerated Park-PFI deployment at other parks within the city.
Evaluation as a National Model
Content of the PPP/PFI Promotion Mayors' Conference presentation and implications for other municipalities
Presentation at the PPP/PFI Promotion Mayors' Conference
At the PPP/PFI Promotion Mayors' Conference held on November 11, 2024, Beppu City Mayor Yasuhiro Nagano presented the Harukigawa Park case as a "Triple-Win Public-Private Partnership."
The "triple win" refers to the following three beneficiaries:
| Beneficiary | Benefit |
|---|---|
| City (government) | Usage fees and related payments of about ¥14 million a year (operator's projection), private-sector construction cost burden, maintenance cost reduction |
| Operator (SPC) | Commercial facility revenue opportunity, long-term stable business secured |
| Residents | Access to sports and health facilities, daily shopping convenience, café and relaxation space |
Prior Market Sounding Survey
Before introducing Park-PFI, Beppu City conducted a market sounding survey to ascertain private-sector participation appetite and business viability conditions in advance. Through this survey, the "three-dimensionalization" concept was formed and reflected in solicitation conditions.
The careful execution of a market sounding survey led to appropriate operator selection and a viable business scheme — a procedural lesson for other municipalities.
Implications for Other Municipalities
The Harukigawa Park case is particularly relevant for municipalities with the following conditions:
- Undeveloped park land: Urban-planning designated land left undeveloped for years exists in many municipalities nationwide
- Regional core cities with populations around 100,000: Lacking the visitor draw of major cities but having sufficient everyday commercial demand
- Tourism resources: Hot springs, nature, historical assets, and other tourism resources can boost park visitor numbers
- Capacity for locally-led SPC formation: Availability of local enterprises that can complete the business within the region without reliance on major firms
→ For guidance on conducting Park-PFI market sounding surveys, see Park-PFI Market Sounding.
Complete Guide to Park-PFI
Comprehensive explanation of the Public Recruitment Installation and Management System: mechanism, procedures, and cases
Park-PFI Usage Fee Design
Usage fee revenue calculation methods, national benchmarks, and design considerations
Park-PFI Latest Cases and Statistics [2026 Edition]
Nationwide statistics across 203 parks and policy trends
What to do next
When using a case to inform a project, check how its conditions differ from the target park.
| # | What to check or consider | Responsible team or contact |
|---|---|---|
| 1 | Compare the case with the target park's area, location and users. Do not assess viability from population size alone | Published records and target park surveys |
| 2 | Obtain the case municipality's solicitation guidelines and selection results. Ask the responsible team for records not published online | Parks team in the case municipality |
| 3 | Compare the minimum fee in the guidelines with the fee in the selected proposal | Solicitation guidelines and selection results |
| 4 | Check existing building footprints and building coverage limits in the target park's local ordinance | Parks team |
| 5 | Present the target park's conditions and the case evidence, and ask operators about their interest and requirements | Market sounding |
To apply a case to the target park, examine the solicitation terms and selected proposal. Identify which conditions are relevant, accounting for differences in area, location and users.
This coverage-ratio uplift is not 10 percentage points for rest facilities and another 10 for solicited park facilities: the two share a single 10%. In a park that has already reached 12% with rest or sports facilities, no new amenity facility can be added as a solicited park facility. Both that 10% and the ordinary 2% are figures the law asks local governments to take into account, and the ratio that applies is the one each local government sets in its own ordinance.
References
Harukigawa Park Project — Selection Result and Assessment — Beppu City Harukigawa Park Project Operator Selection Committee (2021)
Harukigawa Park Project — Solicitation Guidelines — Beppu City (2021)
Harukigawa Park Development and Operation Project — Beppu City (2024)
PPP/PFI Promotion Mayors' Conference: Beppu Mayor's Presentation — Triple-Win Public-Private Partnership — Ministry of Land, Infrastructure, Transport and Tourism (2024)
Harukigawa Park Opening — Beppu City's Three-Dimensional Park with Trial and Other Tenants — Urban Commercial Research Institute (2023)
Harukigawa Park Development Project: Designated Developer Decision — Beppu City (2022)
