"Osan Urban Development Corporation Establishment" Gets Green Light

[Suwon Ilbo=Reporter Lee Su-won] The establishment of Osan Urban Development Corporation has received a green light.

This comes as the Osan City Council processed the Osan City Facilities Management Corporation Organizational Change Consent Resolution, the Osan Urban Development Corporation Establishment and Operation Ordinance, and the Repeal Ordinance for the Osan City Facilities Management Corporation Establishment and Operation Ordinance at the 2nd Regular Session of the 285th Plenary Assembly.

Following the passage of the 9.9 billion won capital investment consent resolution at the 3rd Plenary Assembly of the 281st Regular Session of the Osan City Council held at the end of last year, with the processing of the remaining three ordinances and consent resolutions, the legal procedures for the substantive establishment of Osan Urban Development Corporation have been finalized.

Mayor Lee Gwon-jae summarized the three objectives for converting the Osan City Facilities Management Corporation into an urban development corporation over the past two years since the start of his eighth-term administration.

△Prevention of haphazard development through systematic urban development △Securing development project authority and public interest △Maximization of public share in development profits and reinvestment of profits within the region are precisely these objectives.

After processing the ordinance and consent resolution, the mayor said, "I express my gratitude to Assembly Speaker Sung Gil-yong and all council members for coming together with collaborative governance for the establishment of an urban development corporation that can proactively pursue a 500,000-strong self-reliant connected city," and added, "Through swift administration, I will ensure that Osan Urban Development Corporation can launch as soon as possible."

With the legal procedures for Osan Urban Development Corporation establishment finalized, we examine the process of corporation conversion and the future direction of urban development corporation operations.

■ Launch as Hybrid-Type Urban Development Corporation with Both Corporation and Public Agency Functions

Osan Urban Development Corporation will launch as a hybrid-type urban development corporation possessing both functions of the existing Facilities Management Corporation and urban development corporation.

Accordingly, commissioned projects previously conducted by the Osan City Facilities Management Corporation, such as operation of sports facilities and public parking lots, and waste volume-based disposal bag sales projects, will continue as before.

In addition, taking advantage of the characteristics of an urban development corporation, the initial plan is to participate in construction agency projects or take over planned development projects.

Participation in construction agency projects involves receiving delegated authority for feasibility design, bidding, commencement, supervision, completion, construction project management, and civil complaint handling related to public architecture and infrastructure expansion and improvement within the city, thereby forming initial capital.

Regarding organization and manpower, while maintaining existing Facilities Management Corporation personnel to smoothly carry out initial projects including the Unammeus Urban Development Project and construction agency projects, the corporation plans to start with a six-member development project team including three city-dispatched staff members.

■ Preparations Proceeding Smoothly for First Project 'Unammeus AI City Project'

Regarding the 'Unammeus AI City Project,' which will be the first project of the urban development corporation, the city's equity stake is expected to be transferred to the corporation swiftly.

According to the Local Public Enterprise Act (Enforcement Ordinance Article 47-2), for a corporation to participate in a project, it must have capital equivalent to 10 percent of the investment amount.

The city's stake in the Unammeus AI City project is valued at 19.8%, or 990 million won, so the urban development corporation needs to secure 990 million won in capital, which has already received consent for investment from the city council at the end of last year, allowing for swift equity transfer.

Mayor Lee has shown determination to focus on securing the relevant equity, as he has emphasized from the beginning of the urban development corporation establishment the prevention of external outflow of development profits and the goal of increasing public interest.

The profits obtained through the Facilities Management Corporation system will be far greater than before, and these profits will be reinvested entirely for Osan citizens—this was the core of Mayor Lee Gwon-jae's "Osan seedbed" theory.

If the urban development corporation expands the possibility of participating in large-scale projects such as semiconductor parts and materials industry complex development, renovation and reconstruction of aging downtown areas and apartments, and construction of public institutions, the mayor believes the corporation will certainly succeed.

The mayor is considering as follow-up measures the enhancement of the foundation for Osan Urban Development Corporation's participation in large-scale projects including Segyeyo 1st Zone Terminal Site Development Project, Naessammi-dong Reserve Site Utilization Development Project, and Reserve Forces Training Camp Relocation Site Development Project.

■ Issue Showing Nearly 80% Support Rate... Upholding Citizens' Mandate Through Bipartisan Collaboration

The urban development corporation establishment was an issue that recorded nearly 80% support in citizen opinion surveys.

Previously, during the feasibility research project for converting Osan City Facilities Management Corporation into an urban development corporation conducted in February of last year, the city conducted a related public opinion survey targeting citizens, which showed an overwhelming result of 79.4% in favor of the conversion.

As reasons for supporting the conversion, the ability to pursue development projects tailored to current issues ranked highest at 35.9%, followed by △promoting balanced regional development (26.5%) △profits from development projects and reinvestment (19.4%) △stimulating the local economy (18.2%).

The reason an urban development corporation is necessary is that if projects proceed primarily through private developers, public interest may be lacking and there may be a focus solely on development profits. Additionally, there is the advantage of raising the public share in development projects to the maximum and driving reinvestment within the region.

Following citizens' voices and wishes, the local political community is showing positive evaluations of processing this agenda through bipartisan collaboration.

Mayor Lee Gwon-jae stated, "Since citizens have expressed their wishes and bipartisan cooperation has led to the establishment of the urban development corporation, I will actively ensure a substantial urban development corporation can launch," and added, "I will manage and oversee to ensure concerns about reckless management and wasteful expenditures from poor management do not become reality."