한국지방행정연구원

Basic Report

Year
2017
Author
Sam-Joo Lee, Sung-Chan Kim

A Study of How to Improve Efficiency in Consignment Development of Local Government’s Public Properties

search 43,665
download 6,274
DOWNLOAD
A Study of How to Improve Efficiency in Consignment Development of Local Government’s Public Propertiesdownload
These days, the consensus is that employing the development of public properties is one of the most important issues in property development and management for local governments. However, there is room to improve the efficiency of the consignment development to ensure that local governments can secure more financial resources. This study aims to investigate how to improve efficiency in the consignment development of local governments’ public properties. There are several ways to promote such improvement. First, with respect to the business structure of consignment development, consignees participate in almost the entire process of consignment development in reality. In proportion to their benefits, they should take more responsibility by sharing more risk. In addition, the original definition of consignment development contains “acting” for their consignor. However, in reality, consignees play a more active role in the development of local governments’ public properties. Thus, the relationship between consignor and consignees can be revised.Second, the ranges of consignment development of a local government’s public properties differ from the law of the local government’s public property and its implementing ordinance; these should be reconciled to prevent consignment development of the local government’s public properties from causing some conflicts. Third, a more precise system is necessary in which consignees are designated after all internal processes are complete, with the commission structure revised accordingly. For example, the current consignment development of local governments’ public properties designates the final consignee just after reviewing the project proposal. In this case, the local government cannot substitute consignees for others even though they are not eligible for the development. Thus, it is necessary for a local government to have enough time to choose the right consignees for the project.The final step in realizing efficiency in the consignment development of a local government’s public properties lies in making the best use of experts in the private sector. The current system can entitle only several institutes, such as KAMCO, LH, and other public corporations, as consignees. However, in order to encourage more participants to compete fairly, the current limitation should be revised. Moreover, when a local government chooses consignees, it should consider the project plan more instead of project experience and ability to perform the consignment development of the local government’s public properties. It can result in more institutes participating even if they do not have enough experience in such projects. In the end, local government may have a consignee pool and make the current system fairer.