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ARTICLE · Park-PFI

Sapporo Yurigahara Park Park-PFI LiLiLi — Sapporo's First Case, Community-Led SPV Park Operation

Yurigahara Park in Kita Ward, Sapporo opened the park interaction facility 'LiLiLi' on October 25, 2025 as Sapporo City's first Park-PFI (Public Offering Management System) project. It is operated by the special purpose company 'YURIGAHARA PARK FUTURE LAB,' led by the general incorporated association SAPPORO PLACEMAKING LABO with local companies including Marumi Coffee and Soushin Construction—a community-led Park-PFI case.

The points of this article

  • Sapporo Yurigahara Park is Sapporo City's first Park-PFI project, opening park interaction facility 'LiLiLi' on October 25, 2025
  • The certified plan submitter is the special purpose company 'YURIGAHARA PARK FUTURE LAB,' led by the general incorporated association SAPPORO PLACEMAKING LABO
  • Community-led model with local companies including Marumi Coffee, Soushin Construction, Donguri HD, Ibic Foods, and Kokusaku
Who this is for, and what to know first

Who this is for

  • Municipal officials in severe cold regions (Hokkaido / Tohoku / Hokuriku) considering Park-PFI
  • Private operators participating in Park-PFI as local company alliances
  • Urban planning consultants researching Park-PFI business viability in severe cold regions

What to know first

  • Basic understanding of Park-PFI (refer to [Park-PFI Complete Guide](/en/park-pfi-guide))
In this article

Project Overview

Certified plan submitter / opening / information about facility 'LiLiLi'

Park-PFI Project

Sapporo's 1st

Yurigahara Park

Special Purpose Co.

SPV scheme

community-led

LiLiLi Opening

Oct 25, 2025

interaction facility

Yurigahara Park is a large urban park located in Kita Ward, Sapporo, serving as a resting place for Sapporo residents with functions for flower and greenery displays + events. Sapporo City applied Park-PFI (Public Offering Management System) to this park and selected the special purpose company 'YURIGAHARA PARK FUTURE LAB' as the certified plan submitter; the park interaction facility 'LiLiLi' opened on October 25, 2025. This is Sapporo City's first project.

The three parties in Park-PFI: the manager approves and permits, the operator builds and runs and pays a fee, the user pays for services.
Check the development-cost contribution and payment conditions in the published guidelinesSource: MLIT City Bureau, Guidelines on Using Park-PFI (May 2025 revision), §2.2

The operating entity "YURIGAHARA PARK FUTURE LAB" initially operated as a consortium and was converted into a special purpose company in March 2025. Its lead is the general incorporated association SAPPORO PLACEMAKING LABO, with Marumi Coffee Ltd., Soushin Construction Co., Ltd., Donguri HD Co., Ltd., Ibic Foods Co., Ltd., and Kokusaku Co., Ltd. participating as constituent companies (commons Co., Ltd. joined later). The distinctive feature is that a community placemaking organization and local companies—rather than a major real estate developer—form the core.


Constituent Companies and Community-Led Model

SAPPORO PLACEMAKING LABO (lead) + local companies including Marumi Coffee and Soushin Construction

Yurigahara Park Park-PFI's distinctive feature is its locally-centered composition led by a community placemaking organization. In nationwide Park-PFI cases, major real estate developers (Mitsui, Mitsubishi, Tokyu, Daiwa Lease, etc.) commonly serve as lead companies, but at Yurigahara Park, a community placemaking organization and Sapporo / Hokkaido companies form the core.

ConstituentPositioning
SAPPORO PLACEMAKING LABO (general incorporated association)Lead (community placemaking)
Marumi Coffee Ltd.Café (dining + attraction)
Soushin Construction Co., Ltd.Construction (facility development)
Donguri HD Co., Ltd.Constituent company
Ibic Foods Co., Ltd.Food
Kokusaku Co., Ltd.Constituent company

The lead, SAPPORO PLACEMAKING LABO, is an organization handling community placemaking. Marumi Coffee Ltd. handles dining and attraction as a Sapporo-founded coffee company, while Soushin Construction Co., Ltd. handles facility development. Multiple local companies participate across their respective fields in a complementary composition.

The composition yields three significances. First, by forming the project with local companies and a community organization, direct ripple effects on the local economy arise. Second, without major-developer leadership, operational decisions can more easily match community needs. Third, Marumi Coffee's Sapporo brand power can be leveraged as an attraction core.


Significance of the SPV Scheme

Significance of a special purpose company scheme led by a community placemaking organization

Yurigahara Park Park-PFI adopts an SPV (special purpose company) scheme led by a community placemaking organization. A form in which a community organization and local companies invest in a special purpose company to form the business entity—rather than a major developer leading alone—is, as far as can be confirmed, a minority nationwide. Three preconditions enable this scheme.

First, participating entities must have sufficient capital for project implementation. When forming a project centered on local companies, substituting for major company capital is difficult, and the upper limit of project scale becomes constrained. At Yurigahara Park, business design suppresses project scale to the medium-scale park interaction facility "LiLiLi," achievable with local capital.

Second, track record and trust relationships among participants. An SPV requires frequent decision coordination during project implementation, and without prior collaboration track record, decision delays or ambiguous responsibility division arise. The lead placemaking organization plays the role of coordinating local companies.

Third, municipal offering design that encourages community participation. Cases often include conditions in public offering guidelines that make it easier for local operators and organizations to participate, reflecting municipal policy intent.


Seasonal Variation Response in Severe Cold Region Park-PFI

Balancing winter attraction decline with year-round operating cost design

Hokkaido is a severe cold region with sub-zero winter temperatures (December-March), experiencing significant seasonal variation with major winter attraction decline in outdoor parks. Different from urban Park-PFI (Tokyo, Osaka, Nagoya, etc.), business design presuming year-round operation cannot be simply applied.

Yurigahara Park Park-PFI's business design must account for this seasonal variation. During winter attraction decline, a portion of year-round operating costs is covered by spring-fall peak revenue. The indoor park interaction facility "LiLiLi" maintains constant attraction even in winter through indoor-type design, partially mitigating seasonal variation impact.


Implications for Other Municipalities

Severe cold region + local company alliance Park-PFI business model

Three points to consider by municipalities referencing Yurigahara Park.

First, severe cold region Park-PFI requires business design responding to seasonal variation. Rather than presuming year-round operation, settle with operators through dialogue on business models where peak-season revenue covers year-round operating costs.

Second, a composition centered on local companies and a community organization presupposes suppressing project scale to medium-scale or smaller. In large-scale cases, business viability fails to be reached with local capital alone, making mixed alliances adding major companies realistic.

Third, the lead organisation in a community-led SPV coordinates participants. Unclear duties or decision rights can delay decisions. Review the proposed division of work during procurement and specify responsibilities and decision procedures in the contract.

Basics

Park-PFI Complete Guide

Comprehensive explanation of the system, procedures, and cases

Hisaya-odori Park Independent-Accounting Park-PFI

The business scheme of Japan's largest-class Park-PFI

Tsurumai Park Park-PFI 100+ Years of History

Park-PFI utilization of a historic urban park


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 considerResponsible team or contact
1Compare the case with the target park's area, location and users. Do not assess viability from population size alonePublished records and target park surveys
2Obtain the case municipality's solicitation guidelines and selection results. Ask the responsible team for records not published onlineParks team in the case municipality
3Compare the minimum fee in the guidelines with the fee in the selected proposalSolicitation guidelines and selection results
4Check existing building footprints and building coverage limits in the target park's local ordinanceParks team
5Present the target park's conditions and the case evidence, and ask operators about their interest and requirementsMarket 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

Park-PFI Implementation Status (as of 31 March 2026) — MLIT City Bureau (2026)

Park-PFI Case Collection — MLIT City Bureau (2026)

Guidelines on Using Park-PFI to Improve Urban Park Quality (May 2025 revision) — MLIT City Bureau (2025)

Statistics cited in this article

  1. 1Sapporo City, Yurigahara Park Park-PFI(2025) Open source
  2. 2MLIT City Bureau, Guidelines for Park-PFI to Improve the Quality of Urban Parks (revised May 2025, in Japanese), 2.3(2025) Open source

Share or cite this article

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Key Terms in This Article

Park-PFI
A system under Japan's Urban Parks Act that publicly solicits private operators to develop and manage revenue-generating facilities (e.g., cafés) alongside park facilities. Established by 2017 law revision with up to 20-year permits.

What to check on your own case

  • Can your municipality establish a Park-PFI project with an SPV led by a community placemaking organization?
  • Should Park-PFI cases in severe cold regions presume year-round operation or seasonal peak type?
  • How does a community-led SPV differ from major-developer-led schemes in decision-making and business scale?

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