Case Study: Support for Urban Development Vision Examination by the Chamber of Commerce
Masanori Narita
Certified Real Estate Appraiser, MAI, MRICS in Deloitte Japan as well as Certified International Property Specialist (CIPS).
We would like to present a case study from our real estate advisory services that focuses on urban development and advisory support. Our Real Estate Advisory Team collaborates with the Infrastructure and Public Sector Advisory Team to provide "Urban Strategy Advisory Services." These services encompass projects involving public-private partnerships, comprehensive real estate development initiatives, and urban development deliberations.
As part of our service portfolio, we are pleased to highlight our involvement in the "Support for Formulating Recommendations on Waterfront and Downtown Urban Development Vision" project undertaken in collaboration with the Kagoshima Chamber of Commerce. Deloitte Tohmatsu contributed to this initiative, providing expert guidance in shaping the vision for the city's waterfront and central business district.
Background of the Recommendations Compilation for Urban Development Vision:
The purpose of this project was to serve as a catalyst for integrated public-private urban development initiatives and to provide a foundation for concrete discussions towards the realization of urban development. The Kagoshima Chamber of Commerce sought to compile specific ideas and recommendations regarding urban development, intending to create a framework for further deliberations. Throughout the examination process, Deloitte Tohmatsu provided advisory services to support this endeavor.
The target area of this vision includes the area from the Tenmonkan district, which is currently the bustling and tourist center of the city, to the waterfront district.
The city of Kagoshima, the focus of this project, has great potential as a tourist destination with its strategic location as the southern terminus of the Shinkansen (bullet train) and a major port for ferry services to nearby islands. The city aims to become an "International Tourism City," and the area comprising the Tenmonkan district and the waterfront area (hereinafter referred to as the "target area") is expected to continue driving the urban development and tourism activities within the city.
However, there was a challenge in promoting urban development, as large-scale facility construction plans were progressing in the waterfront area without a clear urban development vision being presented (as of the situation in 2022). To address this, the Kagoshima Chamber of Commerce, our client in this matter, recognized the need to formulate a specific vision and conduct individual development projects aligned with that vision to achieve their desired urban development goals. As a result, the Chamber of Commerce decided to consolidate their ideas on urban development and become a catalyst for its promotion. The following provides an overview of the specific recommendations made.
Utilization Plan and Challenges for the Waterfront Area:
Currently, Kagoshima City is concurrently considering the development of two large-scale facilities through administrative efforts. One is the Kagoshima Prefecture's plan for a new comprehensive sports arena (Sports Convention Center Basic Concept), and the other is Kagoshima City's plan for a stadium (Football Stadium Concept). Both plans involve developing underutilized land in the waterfront area as potential sites. However, these projects were still limited to individual facility development plans, and there was a need to present a more concrete urban development vision that aligns the waterfront area with the central downtown area of Kagoshima, represented by the Tenmonkan district.
Additionally, Kagoshima City boasts natural and cultural attractions, such as Sakurajima, making it a highly sought-after location for business tourism. However, existing MICE (Meetings, Incentives, Conferences, and Exhibitions) facilities were considered insufficient in terms of functions and capacity, which limited their ability to fully cater to the needs of visitors. Consequently, it was necessary for the target area to work collaboratively to promote integrated urban development while also seeking opportunities to enhance MICE facilities and services.
The vision for comprehensive urban development in the target area encompasses four fundamental principles:
Efforts will be made to enhance the inflow of new visitors from both domestic and international locations by developing MICE facilities that serve as a hub for attracting visitors and promoting the region's attractions. Building a robust PR system and facilities that showcase the area's appeal will further increase the exchange population. Additionally, the development of vibrant cultural and recreational facilities will create an environment that encourages interactions among various generations of local residents, not just tourists.
2. Promotion of Urban Living in the City Center:
By concentrating vibrancy and exchange activities in the target area, its revitalization will be promoted, and urban living in the city center will be encouraged. This will be achieved through realizing high-rise building developments, including volume easing, and providing facilities that cater to diverse lifestyles. Moreover, the vision aims to foster an international urban environment that attracts attention from abroad, including the establishment of living and working environments for foreign residents, and promoting consumption, including foreign currency transactions.
3. Creation of Multi-faceted Vibrancy:
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To enhance urban functionality and promote the vibrancy of the city, the target area will be assigned specific roles based on regional resources such as history, culture, and the environment. By establishing key facilities that showcase Kagoshima's culture and other unique features, the city's attractiveness will be further highlighted. Additionally, the improvement of transportation networks (roads, public transport) that enhance connectivity within the wider region will be pursued, aiming to generate multi-faceted vibrancy.
4. Realization of Sustainable Urban Development:
The vision strives to foster collaboration and partnership between local residents, local businesses, and the government, and aims to promote comprehensive urban development through the establishment of public-private partnerships such as DMO (Destination Management Organization) for urban development. Environmentally conscious urban development, centered around public transportation and pedestrian-friendly planning, will also be pursued.
The image of urban development that takes advantage of the existing location and area characteristics is as follows:
Green: The core of wellness and cultural vibrancy, Red: The core of local culture and vibrant stays, Blue: The core of exchange and tourism vibrancy
Urban Structure based on Area Characteristics:
Together with the fundamental principles of urban development, specific images of urban planning have been organized. The plan is to utilize the existing location and area characteristics to create the skeleton of the city and aim for multi-faceted vibrancy.
Three vibrant nuclei that drive the creation of excitement in the target area will be established. Each nucleus will be uniquely designed, capitalizing on the location's specific characteristics.
2. Formation of Guiding Spaces Connecting the Vibrant Nuclei:
By enhancing opportunities for movement due to the increased appeal of the nuclei and creating pedestrian-friendly spaces (introducing resting spots and enhancing street aesthetics), overall connectivity within the target area will be improved.
3. Ripple Effects on the Entire Target Area and Beyond:
These initiatives will not only form multi-faceted vibrancy within the target area but also create ripple effects on the surrounding regions. Additionally, through collaboration with areas beyond the target area, it will lead to the overall revitalization from Kagoshima Central Station to the area surrounding Kagoshima Station.
Deloitte Tohmatsu's Urban Strategy Advisory Services:
This vision was compiled as a recommendation by the Kagoshima Chamber of Commerce in the 2022 fiscal year. Moving forward, stakeholders from various positions, including local residents, local businesses, organizations, and the government, are expected to engage in discussions and collaboratively shape the urban development vision.
Deloitte Tohmatsu provided support in consolidating the clients' aspirations into a vision and offered expertise in urban development. In future similar projects, we intend to continue providing urban strategy advisory services based on the diverse expertise of professionals knowledgeable in urban strategy and real estate.