Abstract
This paper aims to analyze the effect of planning negotiation system as to building activities based on a Machidukuri agreement through a case study on the Fukae district in Kobe as advanced case of planning negotiation system between Machidukuri-organization and developers. It is concluded that the planning negotiation system as to building activities based on the Machidukuri agreement was effective on the reflection of residential needs and the manegement of the district environment, especially concerning quarity of open space design, but it is necessary to add the provisions of planning negotiation with neighboorhood residents and residents'association to Machidukuri agreement because the planning negotiation process is ambiguous for developers.