Hisaya-odori Park (Nagoya) — Structure of Japan's Largest Park-PFI and Independent-Accounting Scheme
Hisaya-odori Park in Naka Ward, Nagoya opened in September 2020 as a landmark Park-PFI (Public Offering Management System) case. Managed by Mitsui Fudosan under a 20-year contract covering 54,122 m², it achieved integrated development of 35 commercial stores and public facilities with zero public expenditure by Nagoya City through an independent-accounting scheme.
TL;DR
- Hisaya-odori Park opened on September 18, 2020 as a large-scale Park-PFI project covering approximately 54,122 m²
- A group led by Mitsui Fudosan was selected as the certified plan submitter under a 20-year contract (March 2018 - end of February 2038), with zero public expenditure by Nagoya City under an independent-accounting scheme
- Integrated development of designated park facilities (lawn plaza + 80m water feature + newly planted trees) and revenue facilities (35 commercial stores in 24 buildings) marks a landmark for urban Park-PFI
Project Overview
Verified information from primary sources: opening date, operator, contract period, target area, site area
Target Area
approx. 54,122㎡
North + TV Tower Area
Business Period
20 years
2018-2038
Opening
Sept 2020
RAYARD Hisaya-odori Park
Hisaya-odori Park is located at Marunouchi 3-chome and Nishiki 3-chome in Naka Ward, Nagoya, at the city's urban core. On September 18, 2020, it reopened as "Hisaya-odori Park" following large-scale redevelopment, covering the North Area and Television Tower Area totaling approximately 54,122 m². The scheme adopts Park-PFI (Public Offering Management System), established by the June 2017 revision of the Urban Park Act. Mitsui Fudosan Co., Ltd. serves as the representative constituent organization of the certified plan submitter group, together with Taisei Corporation, Nikken Sekkei, and Iwama Zouen as constituent members. As of 2020, this was one of Japan's largest-class Park-PFI cases.
The business period runs approximately 20 years, from the conclusion of the basic agreement in March 2018 to the end of February 2038, with both construction and operating costs borne by the private operator under an independent-accounting scheme. Since opening, the commercial complex "RAYARD Hisaya-odori Park" has operated with approximately 35 stores in 24 buildings.
Structure of the Independent-Accounting Scheme
The mechanism by which the private operator bore all construction and operating costs, with zero public expenditure by Nagoya City for designated park facilities
Park-PFI business schemes fall into three broad patterns. First, an independent-accounting scheme in which the private operator bears all construction and operating costs, recovered through commercial revenue, as in Nagoya. Second, a service-fee scheme in which the municipality bears construction costs while the private operator bears only operating costs. Third, a hybrid scheme with cost-sharing between both parties.
Hisaya-odori Park is designed as a thorough independent-accounting scheme. Nagoya City's public expenditure is zero for both construction and operation, and even the designated park facilities (public infrastructure such as lawn plazas and water features for general users) are financed by commercial revenue. This structure means that 20 years of commercial revenue projections form the lifeline of the business plan, and it can only succeed in high-attractiveness urban core locations.
Integrated Development of Designated and Revenue Facilities
Design integrating public facilities (lawn plaza, water feature, new trees) with 35 commercial stores
Park-PFI institutionally requires bundled development of revenue facilities (commercial facilities generating income) with designated park facilities (freely usable public infrastructure). The facilities developed at Hisaya-odori Park are as follows.
| Category | Content | Cost Bearer |
|---|---|---|
| Designated park facilities (public) | Multi-purpose lawn plaza / 80m water feature / newly planted trees | Operator (recovered via commercial revenue) |
| Revenue facilities | Approx. 35 commercial stores in 24 buildings | Operator |
| Nagoya City public expenditure | None (independent-accounting) | ― |
The lawn plaza functions for casual picnic use in normal times and as a venue for large events. Commercial facilities and designated park facilities are integrated in traffic-flow design, so park visitors use stores and store patrons circulate through the park, creating a bidirectional flow.
Selection Process
3-year cycle from 2017 public offering to 2018 February Mitsui Fudosan Group selection to 2020 September opening
The public offering began in 2017. Two groups submitted proposals, and Mitsui Fudosan Group was selected in February 2018. From selection to opening took approximately 2 years and 7 months; the total cycle from public offering to opening was 3.5 years. This period included parallel construction, tenant recruitment, and opening preparation.
The standard Park-PFI public offering cycle (as envisioned by MLIT guidelines) is 2 to 3 years from public offering to opening. Hisaya-odori Park completed in slightly longer 3.5 years. For large-scale cases (over 50,000 m²), this extension is generally within expected range.
Implications for Other Municipalities
Preconditions for independent-accounting Park-PFI and constraints for regional cities attempting replication
Three points must be understood by municipalities attempting to replicate Hisaya-odori Park.
First, independent-accounting Park-PFI can only succeed in urban core locations. When regional cities with populations under 300,000 attempt independent-accounting, commercial revenue projections fail to reach business viability, and operators either decline to apply or bear withdrawal risk after selection. For regional cities, combination with the Designated Manager System or service-fee/hybrid schemes are realistic.
Second, the 20-year contract (maximum under Park-PFI at 2020) has rigidity that makes it difficult to reflect the municipality's policy changes or fiscal fluctuations mid-contract.
Third, the design philosophy of designated park facilities determines park quality over 20 years. At Hisaya-odori Park, general-purpose facilities (lawn plaza and water feature) were selected. To prevent obsolescence of designated park facilities, general-purpose and event-adaptability characteristics should be explicitly required in the public offering guidelines.
Park-PFI Complete Guide
Comprehensive explanation of the system, procedures, and cases
Park-PFI vs Designated Manager System
Differences, use cases, and combination patterns of the two systems
MLIT Park-PFI Utilization Guidelines (May 2025 Revision)
Primary source archive for institutional utilization