Beppu City Harukigawa Park — Park-PFI in a Hot Spring City and the Structure Behind ¥14 Million in Annual Revenue
Beppu City's Harukigawa Park is a landmark Park-PFI case as western Japan's first three-dimensional urban park. By stacking commercial facilities on the first floor and park functions on the second, the project generates approximately ¥14 million in annual usage fee revenue for the city. This article examines the structure and design behind this model.
TL;DR
- Beppu City's Harukigawa Park is western Japan's first three-dimensional urban park, featuring SuperCenter Trial on the first floor and an artificial turf ground, café, and studio on the second
- Through the Park-PFI model, the city secures approximately ¥14 million in annual usage fee revenue while construction costs are borne by the private sector
- Presented at the PPP/PFI Promotion Mayors' Conference as a 'Triple-Win Public-Private Partnership,' it is gaining national attention as a model for hot spring city park activation
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
¥14M
Annual usage fee revenue for the city
Park-PFI model
9,238㎡
Park site area
Dec 2024
Full opening
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 project generates approximately ¥14 million in annual usage fee revenue for the city, transforming 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 breakdown of ¥14 million annual usage fees
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.
| Company | Location | Role |
|---|---|---|
| Goto System Service Co., Ltd. (Representative) | Beppu City | SPC representative, project oversight |
| Minerva Sports Club | Beppu City | Sports facility operation |
| Aoki Shoji Co., Ltd. | Miyazaki Prefecture | Commercial facility operation |
| Nishi Shoten Co., Ltd. | Beppu City | Local procurement, operational support |
Notably, three of the four companies are Beppu-based local enterprises. Rather than major developers or nationwide consulting firm chains, regionally rooted companies form the SPC's core. This composition is evaluated positively for enhancing the project's regional embeddedness and continuity.
Structure of Annual Usage Fee Revenue
Through the introduction of the Park-PFI model, Beppu City secures approximately ¥14 million in annual usage fee revenue.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 Stable revenue through usage fees: Annual usage fees from the SPC to the city amount to approximately ¥14 million. This figure is understood to combine a variable component linked to commercial facility (Trial) sales and a fixed component based on park facility usage.
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
The "triple win" refers to the following three beneficiaries:
| Beneficiary | Benefit |
|---|---|
| City (government) | ¥14 million annual usage fee revenue, 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 165 parks and policy trends
References
Harukigawa Park Development and Operation Project (2024)
Harukigawa Park Opening — Beppu City's Three-Dimensional Park with Trial and Other Tenants (2023)
Harukigawa Park Development Project: Designated Developer Decision (2022)