Piloting an underground park project through Kickstarter

Lowline

Context

• Lowline is a project to transform an abandoned trolley (tram) terminal on the Lower East Side of Manhattan into the world’s first underground park
• The project conceptualized the park, developed relevant plans and financing methods, and
  coordinated efforts with the stakeholders involved

Problem

• New York City government would not fund the project without a proof of concept as it viewed the investment as risky
• The proof of concept required funding of c. USD 100k which the City of New York government would not pay using tax-payer funds

Innovation

• Lowline used Kickstarter, a global online crowdfunding platform, to finance the required full-scale proof of concept
• Project backers were “rewarded” based on the amount of contributions pledged to the project (e.g., pledges above USD 5,000 would earn a Plant-In-City light terrarium)

Stakeholders Involved

• Local community board — Provided initial buy in for the idea
• General public — Invested in the project through Kickstarter
• New York MTA — Provided access to the site for development
• New York City Economic Development — Gave corporation the approval for the underground park

Results/Impact

• Raised USD 155k from 3,300 backers, exceeding the initial goal of USD 100k
• Financed a functioning full-scale model of the technology required and accompanying green park in an abandoned warehouse directly above the actual site
• Hosted over 11,000 visitors in just two weeks, further demonstrating the project's public appeal
• Received USD 80M from the NYC government for project go-ahead, with expected completion in 2021

Key lessons learnt

• Developers of large scale urban regeneration projects can leverage crowdfunding to finance pilot projects, which may also serve as a channel for citizen engagement
• Crowdfunding can be a form value-proof, with strong financial support being an indication of the project’s public support, thus facilitating buy-in from city governments as well as potential investors
• Project initiators need to have a well developed concept and proven supporting technology, with necessary groundwork completed before going “to- market”