Overall Process Overview
Overview of the six phases (Phase 0–5) and their standard durations
Complete Park-PFI process: Phase 0 (Concept) through Phase 5 (Opening and Operations)
6 phases
Standard timeline from concept to opening — varies by project scale and sounding rounds
3–5 years
Actual timeline for Koriyama City's Kaiseizan Park (March 2020 advisory launch → April 2024 opening)
~4 years
Maximum certification period during Phase 5 Operations — the business term that shapes all investment planning
20 years
The complete Park-PFI process consists of six phases: from concept (Phase 0) through opening and long-term operations (Phase 5). The three to five years is an assumption this article makes rather than a published statistic; it varies with project scale, the complexity of regulatory procedures, and the number of sounding rounds.
In the Kaiseizan Park project in Koriyama City, approximately four years elapsed between the start of the advisory services procurement process (March 2020) and the park opening (April 2024). This four-year case serves as the benchmark throughout this article.
Bird's-Eye View of the Full Process
| Phase | Name | Standard Duration | Primary Activities |
|---|---|---|---|
| Phase 0 | Concept and Internal Alignment | 3–6 months | Assessing park condition; internal deliberation; executive decision |
| Phase 1 | Feasibility Study | 6–12 months | Engaging advisory firm; Stage 1 sounding; designing business scheme |
| Phase 2 | Solicitation Preparation | 6–12 months | Stage 2 sounding; drafting guidelines, standards, and agreement templates |
| Phase 3 | Solicitation and Selection | 4–8 months | Solicitation; application receipt; review; selection; certification |
| Phase 4 | Construction | 12–24 months | Design; building permits; construction; completion inspection |
| Phase 5 | Opening and Operations | Up to 20 years (certification period) | Opening; daily management; monitoring; period renewal |
Phase 0: Concept and Internal Alignment (3–6 months)
Making the park's problems visible with data, securing mayoral and council agreement, and settling the basic policy
Primary Activities
Building shared problem awareness internally: Visualize the park's challenges — aging infrastructure, rising maintenance costs, declining visitation — using data and site photographs. Advance coordination with the finance, planning, and legal departments is necessary.
Briefing the mayor and council: Since Park-PFI may require ordinance amendments (such as usage fee ordinances), it is important to secure executive-level commitment early. Advance briefings for council members are also essential.
Establishing a basic improvement policy: Draft a policy for applying Park-PFI to the target park, confirming consistency with higher-level plans such as the Green Master Plan and Comprehensive Municipal Plan.
Deliverables at This Stage
- Park condition analysis (aging status, visitor numbers, maintenance cost history)
- Internal policy document on Park-PFI application
- Advisory firm selection specifications (budget, scope of work)
Phase 1: Feasibility Study (6–12 months)
Selecting an advisory firm by proposal, then fixing the basic scheme through the feasibility study and the first-stage sounding
Selecting an Advisory Firm
Because the feasibility assessment requires specialized expertise, most municipalities at this stage engage an advisory firm (consultant) through a publicly announced proposal process.
Koriyama City launched its advisory firm procurement in March 2020 and selected Oriental Consultants in July 2020. The firm served as advisor from July 2020 through March 2022 — approximately two years.Content of the Feasibility Study
With the advisory firm leading, the study addresses four areas:
- Analysis of the park's location and footfall potential: Research on surrounding population, transport access, tourism assets, and competitive environment
- Business scheme design: Business type, scale, application of building coverage ratio relaxation, and scope of designated park facility improvements
The 10 points of added coverage are shared with rest facilities, not granted separately to each. A park that already reaches 12% coverage through rest or sports facilities cannot add a Park-PFI amenity building (Guidelines, §2.3). 3. Financial simulation: Projected usage fee levels, cost-sharing for improvements, and designated management fee estimates 4. Schedule design: Draft timeline for all phases from Stage 2 onward
Stage 1 Market Sounding (Concept Development Stage)
Market sounding in Phase 1 is characterized as the "concept development stage." Its purpose is to confirm market viability and gather ideas from private-sector businesses.
Standard documentation package:
- Overview of the park and its challenges
- Conceptual business scheme (business types, floor area, building coverage ratio)
- Indicative usage fee levels based on financial projections
- Projected schedule
Koriyama City innovation: A trial sounding (October 2020, one-month trial business operation) was conducted, giving private-sector businesses the opportunity to actually operate in the park and validate profitability firsthand. Participants received a bonus of +5 points in the formal solicitation.
Deliverables at This Stage
- Feasibility study report
- Trial sounding implementation report (if conducted)
- Stage 1 sounding implementation report
- Draft business scheme (project overview and financial simulation)
Phase 2: Solicitation Preparation (6–12 months)
Refining the solicitation terms through second-stage sounding, then drafting the solicitation guidelines and the requirement specifications
Stage 2 Market Sounding (Project Development Stage)
Phase 2 involves conducting the "project development stage" of sounding. Building on the basic scheme from Phase 1, draft solicitation conditions (proposed usage fees, scope of designated park facility improvements, project term, etc.) are disclosed and operator feedback is gathered.
Koriyama City conducted its Stage 2 market sounding in January 2022, disclosing draft solicitation conditions. Participants received a bonus of +3 points in the formal solicitation.Drafting the Solicitation Guidelines and Requirements
The most significant deliverable of Phase 2 is the solicitation guidelines. Guidelines that satisfy the ten legally required items under Article 5-2, Paragraph 2 of the Urban Park Act while reflecting local priorities and challenges must be prepared.
Documents to be drafted simultaneously:
- Requirements specification: Detailed specifications and standards for designated park facilities
- Risk allocation table: Allocation of design, construction, operations, and force majeure risks
- Draft agreement: Framework for the installation and management agreement and designated management agreement
- Selection committee formation: Securing at least two academic experts
Preparing Ordinance Amendments (Where Required)
Where usage fee ordinance amendments are needed, council coordination must proceed at this stage. Ordinance amendments require council approval, so the council schedule must be confirmed well in advance.
→ For detailed guidance on drafting solicitation guidelines, see How to Write Park-PFI Solicitation Guidelines.
Deliverables at This Stage
- Stage 2 sounding implementation report
- Completed solicitation guidelines
- Requirements specification
- Risk allocation table
- Draft agreements
- Draft ordinance amendments (where required)
Phase 3: Solicitation and Selection (4–8 months)
The solicitation period, review, selection, and certification — statutory procedures and practical execution
Launching the Solicitation
The solicitation formally begins when the solicitation guidelines are publicly announced. Under Article 3-4 of the Urban Park Act Enforcement Rules, at least one month must elapse between the date of public announcement and the application submission deadline.
Koriyama City schedule:
- April 2022: Solicitation launched (guidelines, requirements, and designated management specifications published)
- July 2022: Intent-to-apply submission deadline
- August 2022: Application submission deadline
- October 2022: Stage 2 review (presentations)
- November 2022: Selection of designated installer
Review and Selection Process
Stage 1 review (document screening): Objective confirmation of alignment with guidelines, financial soundness, and technical capacity. Binary pass/fail determination.
Stage 2 review (presentations and Q&A): Stage 1 passers present their proposals; the selection committee conducts quantitative scoring. In Koriyama City, proposals were scored on a 500-point scale.
→ For detailed guidance on evaluation criteria, see Designing Park-PFI Scoring Criteria.
Certification Procedures
Following selection, the following procedures are completed before the project formally begins:
- Submission of installation and management plan: The designated installer submits the certification application documents
- Certification: The park management authority certifies the plan (Article 5-4, Paragraph 1 of the Urban Park Act)
- Basic agreement execution: Execution of the agreement setting out basic project conditions
- Building Standards Act Article 48 permit: Building permit for park facilities (special permit for locations outside specified use zones)
- Designated manager council resolution: Council approval of the designated manager appointment (in integrated solicitation cases)
- Formal execution of agreements: Execution of the installation and management agreement and designated management agreement
Deliverables at This Stage
- Selection notice and selection committee minutes
- Installation and management plan certification
- Basic agreement, installation and management agreement, designated management agreement
Phase 4: Construction (12–24 months)
From confirmed improvement plan through construction completion — roles and schedule coordination
Construction Overview
Phase 4 is the stage in which the selected private operator actually constructs the facilities. Two types of construction work proceed, often in parallel:
| Type of Construction | Client | Cost Sharing | Approximate Duration |
|---|---|---|---|
| Designated park facility construction | Private (to municipality's specifications) | Shared (with the subsidy, the municipal share must be ≥10% below the estimate) | 12–18 months |
| Revenue facility (publicly solicited park facility) construction | Private | Fully privately funded | 6–18 months |
Where the Public-Private Vitality Hub subsidy is used, project eligibility requires the municipality's share of the cost of the designated park facilities to be at least 10% below the amount estimated at the time of solicitation. The guideline states that this 10% is the minimum condition for using the subsidy and that each project should set its own, project-appropriate share. The split itself is decided by the municipality in its solicitation guidelines; Koriyama City set it at "municipality ≤90%, private ≥10%" for Kaiseizan Park.
Importance of Schedule Coordination
Where the two types of construction overlap, phased scheduling is required. Plans must address the impact on park visitors, safety, and utility supply (electricity, water, drainage) well in advance.
In Koriyama City, large-scale construction commenced in July 2023, covering the western zone of Kaiseizan Park (approximately 119,900 m²) and three adjacent district parks (approximately 9,000 m²). Despite the scale, the construction phase lasted approximately nine months, with the park opening in April 2024.
The Municipality's Role During Construction
- Supervision: Confirming that designated park facility construction proceeds in accordance with the requirements specification
- Permit assistance: Internal coordination for the private sector's building permit applications and fire safety equipment inspections
- Resident communication: Advance explanations regarding construction noise, vibration, and traffic restrictions
Deliverables at This Stage
- Design documentation (prepared by the design firm)
- Construction plan and schedule
- Completion inspection certificate
- Construction completion report
Phase 5: Opening and Operations (Certification period, up to 20 years)
From opening preparation through long-term operations — monitoring and handling period expiry
Opening Preparation
After construction completion, preparation for the opening of revenue facilities proceeds:
- Tenant recruitment: Where multiple outlets are to operate, securing an anchor tenant that will open first is critical
- PR and marketing: Planning opening events, issuing press releases, and executing social media campaigns
- Staff hiring and training: Securing local employment and pre-opening training programs
Day-to-Day Management and Monitoring
After opening, ongoing dialogue between the municipality and private operator is essential.
Municipality's role (monitoring):
- Confirming revenue sharing (reviewing annual reports)
- Confirming maintenance conditions (1–2 site visits per year)
- Periodic review of operator financial condition (for early detection of financial deterioration)
Private operator obligations:
- Submission of annual business reports
- Revenue sharing payments
- Day-to-day facility maintenance and repairs
Options Upon Period Expiry
Three options are available when the certification period (maximum 20 years) expires:
| Option | Content | Building Coverage Ratio Exemption |
|---|---|---|
| Re-solicitation (continued Park-PFI) | Conduct a new solicitation and continue with a new or renewed business plan | Exemption applicable |
| Negotiated extension with incumbent operator | Bypass re-solicitation and negotiate continuation with the same operator | Legally tenuous — creates risk |
| Transition to standard permit | Switch to an ordinary installation and management permit under Article 5-1 of the Urban Park Act | Exemption lapses (maximum 10 years; building coverage ratio reverts to ordinance standard) |
The Kaiseizan Park Four-Year Case
Comparison of the actual Koriyama City timeline against the standard model
The following table maps the actual Koriyama City timeline against the standard model:
| Date | Phase | Actual Activity at Kaiseizan Park |
|---|---|---|
| March 2020 | Phase 0→1 | Advisory firm procurement launched via public proposal process |
| July 2020 | Phase 1 begins | Oriental Consultants selected; engagement commences |
| October 2020 | Phase 1 (mid) | Trial sounding conducted (1 month; +5 bonus points) |
| September 2021 | Phase 1 (late) | Preliminary sounding (feasibility study stage) |
| January 2022 | Phase 2 (mid) | Market sounding conducted (draft solicitation conditions disclosed; +3 bonus points) |
| April 2022 | Phase 3 begins | Guidelines, requirements specification, and designated management specifications published |
| July–August 2022 | Phase 3 (mid) | Intent-to-apply and application submissions received |
| October 2022 | Phase 3 (mid) | Stage 2 review (presentations) |
| November 2022 | Phase 3 complete | Kaiseizan Frontier Partners (led by Daiwa Lease Group) selected |
| July 2023 onward | Phase 4 | Full-scale construction commences |
| April 2024 | Phase 5 begins | Western zone renewal opening |
Comparison with the Standard Model
| Item | Standard Model | Koriyama City Actual |
|---|---|---|
| Phase 0→1 | 3–6 months | Approx. 4 months |
| Phase 1 (feasibility study) | 6–12 months | Approx. 12 months (including trial sounding) |
| Phase 2 (solicitation preparation) | 6–12 months | Approx. 4 months (January–April 2022) |
| Phase 3 (solicitation and selection) | 4–8 months | Approx. 8 months (April–November 2022) |
| Phase 4 (construction) | 12–24 months | Approx. 9 months (July 2023–March 2024) |
| Total (through opening) | 3–5 years | Approx. 4 years |
Timeline Compression Strategies
Engage an Advisory Firm Early
Delays in engaging an advisory firm during Phase 1 cascade directly into overall schedule delays. Securing budget and preparing the procurement process in parallel during Phase 0 is critical.
Conduct More Sounding, Earlier
The timing and quality of sounding rounds directly affects how smoothly Phases 2 and 3 proceed. Confirming early whether private-sector interest exists and whether proposed usage fee levels are viable significantly reduces the rework needed in guidelines drafting.
Form a Cross-Departmental Team Early
Park-PFI cannot be advanced by park management staff alone. Bringing in the finance department, legal department, urban planning department, and council liaison into the project team early minimizes inter-departmental coordination costs.
Use Parallel Workstreams
- Guidelines drafting and ordinance amendment preparation in Phase 2 can run in parallel
- Construction procurement preparation (e.g., selecting a design firm) can begin during the Phase 3 solicitation period
- Designated park facility construction and revenue facility construction in Phase 4 can partially overlap
What to do next
When considering Park-PFI, examine the park's conditions, use and operator interest.
| # | What to check or consider | Responsible team or contact |
|---|---|---|
| 1 | Check the park's site area and the footprint of existing buildings, including rest and sports facilities, to establish current building coverage | Parks team |
| 2 | Check the building coverage limits and exceptions in the local ordinance. Compare them with existing building footprints to assess whether new facilities can be added | Parks team |
| 3 | Study visitor numbers and patterns of use, including weekday, weekend and seasonal differences, to assess likely demand | Site surveys and existing survey records |
| 4 | Check actual fees at comparable parks, taking account of differences in area, location and facility use | Other municipalities and published records |
| 5 | Present the survey results and proposed use to private operators. Ask about their interest and the conditions needed for a viable project | Market sounding |
Assess the scope for new buildings against existing building footprints and the local ordinance. If there is no room to add buildings, consider reuse of existing facilities and other project methods.
The reference ratio for building coverage is 2%, and the uplifts for rest and sports facilities and for solicitation-target facilities can be combined only up to 10 points in total, giving a ceiling of 12%.
References
Guidelines for Improving the Quality of Urban Parks through Park-PFI (Revised May 30, 2025) — Urban Bureau, Ministry of Land, Infrastructure, Transport and Tourism (2025)
Koriyama City Park-PFI Project (Kaiseizan Park) — Koriyama City (2024)
Kaiseizan Park Park-PFI Project Overview (58564.pdf) — Koriyama City (2022)
How to Write Park-PFI Solicitation Guidelines
The key Phase 2 deliverable — all 10 legally required items, the MLIT template, and a breakdown of Koriyama City's 61-page guidelines
Park-PFI Market Sounding Practical Guide
Designing and conducting the Phase 1–2 sounding rounds that determine whether your solicitation conditions are viable
