ECONOMICS UNIQUENESS

Recommendations

Info

234 ■ THE <strong>ECONOMICS</strong> OF <strong>UNIQUENESS</strong> • Brownfi eld redevelopment projects can generate value through active management (for example, by adding leisure activities such as the development of the hotel network system of Paradores in Spain). • Urban brownfi eld projects are seen as a means of achieving greater diversifi cation in portfolios due to their low volatility and long-term returns. Urban brownfi eld investments in developing countries can, however, face certain obstacles. One problem may be the income return, which is infl ation hedged; this problem can be solved through regulation and negotiation of the pricing mechanisms to adjust the income for infl ation. Furthermore, investors may be put off by the long-term commitment required for brownfi eld projects. Th erefore, it is vital that these investments should benefi t local economies, thus resulting in sustainable returns, and at the same time help private investors meet their fi nancial goals. Th ere are many examples of urban development funds dedicated to urban brownfi elds, especially in the Unites States. Th ere, a development fund known as the Environmental Protection Agency (EPA) Brownfi eld Revolving Loan Fund (BRLF) fi nances the remediation activities of redevelopment projects through low-interest or even no-interest loans for brownfi eld cleanup. By 2006 funds were given to approximately 190 projects. Th ere are also heritage funds established in European countries: in Ireland the Hearth Revolving Fund is mainly a privately fi nanced fund designated for the restoration of listed heritage buildings for resale, usually as dwellings; in the Netherlands a revolving fund, a joint initiative entitled Brownfi elds Beter Benut (Brownfi elds Better Used), provides low-interest loans for the promoters of brownfi eld projects. Regarding fi nancing the redevelopment of historic districts, it is worth discussing the European Commission policy initiative Joint European Support for Sustainable Investment in City Areas (JESSICA), developed by the European Investment Bank and supported by the Council of Europe Development Bank (CEB). Th e recent fi nancial crisis and increasingly scarce public budgetary resources have stimulated exploration of the best ways to employ European Union Structural Funds (SFs)—aimed at reducing regional disparities in income, wealth, and opportunity—in order to meet the growing development needs of EU member states. As a result, the JESSICA initiative was launched to provide new opportunities to authorities responsible for the implementation of SFs (JES- SICA was promoted through the EU 2007–13 programming cycle). Th e primary objective of JESSICA is to defi ne a system of fi nancial urban development funds by using revolving fi nancial instruments to support sustainable urban development (that is, renewal and regeneration projects). Such fi nancial vehicles build portfolios of revenue-generating projects by providing them with loans, equity, or guarantees that are then repaid by project revenues or cost savings over a given period.
FINANCIAL MECHANISMS FOR HISTORIC CITY ■ 235 One of the features of this specifi c urban development fund is the capacity to use the SF contribution, thereby ensuring long-term sustainability for the urban development. By leveraging additional resources from the private sector, the fund is able to create stronger incentives for better performance of the fi nal recipients, increasing the effi ciency and eff ectiveness of public resources. However, JESSICA represents a specifi c policy tool whose wider fi nancial impact would need to be tailored if it were to be implemented in countries outside the European Union. Taking the above into consideration, signifi cant potential exists for the creation of urban development funds dedicated to urban heritage brownfi elds that would provide both appropriate funding for the project and risk coverage for investors. Several fi nancial mechanisms may be considered: • Guarantee fund, which could act as a guarantee to fi nanciers in case a developer should prove unable to meet his obligations (for example, the European Agricultural Guidance and Guarantee Fund). • Insurance program, which could provide security by protecting against cost overruns and unforeseen risks. • Revolving fund from which a developer could obtain low-interest loans; redemption and interest fl ow back into the fund and could cover residual risks and institutional controls aft er remediation is completed (for example, the National Restoration Fund in the Netherlands). Urban development funds based on a revolving fi nancial mechanism could make funds available at a low interest rate to attract investors, and these funds, through self-supporting mechanisms, may be reinvested or made available to cover residual risks. Th e revolving funds could supplement already existing traditional urban development instruments such as grants and loans, particularly in developing countries. Th e establishment of a revolving fund within the structure of an urban development fund for historic urban heritage projects could signifi cantly improve both the quantity and duration of urban brownfi eld redevelopment. Case Study: Silesia and Other Regions in Poland Poland is investing in JESSICA in four of its regions: Wielkopolska, West Pomerania, Pomerania, and Silesia. It decided to create revolving vehicles and dedicate part of the SFs to fi nance urban renewal and regeneration projects in the cities of these regions, particularly historic districts. Because of its history, for many years Poland did not participate in the debate over regeneration needs and policies in Europe. Th e Silesia region is a highly industrialized area with numerous postproduction and postindustrial sites, many of which have high historical value;
Page 1:
Public Disclosure Authorized Public
Page 4 and 5:
Th e Urban Development Series discu
Page 6 and 7:
© 2012 International Bank for Reco
Page 8 and 9:
vi ■ CONTENTS Project Appraisal i
Page 10 and 11:
viii ■ CONTENTS Appendix II: Addi
Page 12 and 13:
x ■ CONTENTS 7.4 Tourism Is Coupl
Page 14 and 15:
xii ■ CONTENTS 9.1 How to Organiz
Page 17 and 18:
Exegi monumentum aere perennius reg
Page 19:
ACKNOWLEDGMENTS ■ xvii Cultural O
Page 22 and 23:
xx ■ OVERVIEW What Are the Object
Page 24 and 25:
xxii ■ OVERVIEW and captures the
Page 26 and 27:
xxiv ■ OVERVIEW periphery, especi
Page 28 and 29:
xxvi ■ OVERVIEW tourism—by impr
Page 30 and 31:
xxviii ■ OVERVIEW 3. Institutiona
Page 33 and 34:
1 Livable Historic City Cores and E
Page 35 and 36:
LIVABLE HISTORIC CITY CORES AND ENA
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
2 Investing in the Sense of Place:
Page 49 and 50:
INVESTING IN THE SENSE OF PLACE ■
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
0 45° INVESTING IN THE SENSE OF PL
Page 63 and 64:
Page 65 and 66:
FIGURE 2.4 continued INVESTING IN T
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
A Dubious Alternative: Property Rec
Page 73 and 74:
Page 75:
Page 78 and 79:
46 ■ THE ECONOMICS OF UNIQUENESS
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
TABLE 4.1 Overview of Hedonic Price
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
Page 138 and 139:
Page 140 and 141:
Page 142 and 143:
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Page 186 and 187:
Page 188 and 189:
Page 190 and 191:
Page 192 and 193:
Page 194 and 195:
Page 196 and 197:
FIGURE 6.5 Quito and Oaxaca: Timeli
Page 198 and 199:
Page 200 and 201:
Page 202 and 203:
Page 204 and 205:
Page 206 and 207:
TABLE 6.5 Quito Investments in the
Page 208 and 209:
Page 210 and 211:
Page 212 and 213:
Page 215 and 216: 7 UNESCO World Heritage List, Touri
Page 217 and 218: UNESCO WORLD HERITAGE LIST, TOURISM
Page 221 and 222: TABLE 7.1 Regional and Historical D
Page 227 and 228: TABLE 7.3 Benchmark Regressions Fir
Page 239 and 240: TABLE 7.10 Robustness to Using Diff
Page 245 and 246: 8 Financial Mechanisms for Historic
Page 247 and 248: FINANCIAL MECHANISMS FOR HISTORIC C
Page 253 and 254: BOX 8.2 FINANCIAL MECHANISMS FOR HI
Page 255 and 256: BOX 8.3 FINANCIAL MECHANISMS FOR HI
Page 257 and 258: TABLE 8.1 Local Financial Tools Use
Page 259 and 260: FIGURE 8.4 Brownfi eld Concession T
Page 265: FINANCIAL MECHANISMS FOR HISTORIC C
Page 275: FINANCIAL MECHANISMS FOR HISTORIC C
Page 278 and 279: 246 ■ THE ECONOMICS OF UNIQUENESS
Page 317 and 318:
Boxes, fi gures, maps, notes, and t
Page 319 and 320:
China. See also specifi c cities ac
Page 321 and 322:
public sector role, 222-26, 223b, 2
Page 323 and 324:
Kraay, A., 198 Kratz, C. G., 96 L l
Page 325 and 326:
Pine Ridge Reservation (U.S.), 238
Page 327 and 328:
Shaoxing, China, local residents re
Page 329 and 330:
urban economics appraisal approach,
Page 332:
ECO-AUDIT Environmental Benefits St
show all

ECONOMICS UNIQUENESS

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?