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Allegheny Institute

Looking to the Private Sector to Help County Parks

by Policy Brief

In an effort to improve and maintain the facilities and programs in its parks, Allegheny County will explore opportunities with the private sector. The hope is that improvement of key assets will allow for better quality recreation and programs.

Based on the findings of an August 2007 study by the Oglebay Foundation, the County is prepared to issue requests for proposal (RFPs) on five fixed assets: the Boat House at North Park, the South Park Fairgrounds, tennis courts at four parks, Hartwood horse stables and the Boyce Park Ski Slope. Following the results of those proposals, the County might then seek private interest on wave pools, golf courses, skateboard and bike areas. Advertising and corporate sponsorship are also distinct possibilities.

When coupled with a revision of fees and the creation of a non-profit organization to receive funding for projects, the goal is to bring a more market-driven approach to the parks. This is guided by the belief of the study that the parks have "…a tremendous potential to generate revenue from its assets to help with renovation of the facilities and development of recreational programs".

The idea has been floating around in recent years in the County. In the 2003 Sunset Review of County Government, the study recommended "alternative methods, which would enhance the flexibility and strength...[includes] developing more partnerships with public agencies and private businesses, non-profit organizations, and citizen volunteers; and privatize recreational components".

Other counties and municipalities have gone down the road of public-private partnerships before. Nassau County in New York, a county of similar population size but of much higher median family income and median home value than Allegheny, has engaged the private and non-profit sectors to help catch up on maintenance in the parks and improve the amenities and make them more attractive. From the outset the Nassau County Executive there noted "we are not privatizing our county parks system". But it has come very close as every possible option is on the table: naming rights, sponsorships, advertising, transferring county parks to municipalities, and spinning off assets to committed non-profits have been or are going to be undertaken.

The Allegheny County Executive likewise stated that "we're never going to sell [County] parks". Maybe not for residential or commercial development, but it is clear that every possible revenue-generating opportunity has to be taken advantage of.

Tax dollars certainly aren't getting the job done. The County parks are an annual beneficiary of Regional Asset District funds generated by the 1 percent sales tax. This year they are slated to receive $17 million, which will go toward the departments of Parks, Public Works, and County Police to carry out the functions of running, maintaining, and policing. From 1994 through 2007, the parks received a total of $178 million. Despite the dedicated funding, capital needs and maintenance have fallen significantly behind and new, more entrepreneurial options are needed.

That's why the County is turning toward the private sector for solutions—a much needed but too long delayed step in a more sensible direction.

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Eric Montarti, Policy Analyst
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