Urban Planning for City Leaders - Cities Alliance

Urban planning for city leadersIncrease interest in investmentthrough urban planningCreate value for investorsand householdsHaving a plan is an asset for investmentinterest. A plan aims to create stable conditionsfor development and is a key instrument tomanaging development. By having a plan,a city can show that it has an efficient andforward-looking system of governance, whichis invaluable when competing for investment. Itcan be used to promote the city when seekingsupport from partners and funders, and leaderswith an urban development framework to guideurbanization and promote economic growthcan use it to:• Facilitate the progressive creation ofcadastral records• Market proof infrastructure needs• Prioritize strategic nodes and understandwhat incentives can be given• Prepare market materials that communicatethe local development vision, which canbe used to attract investors’ long termattention• Create a framework of regionalcoordination to avoid competition amongmunicipalities. This can be formal, forinstance through a regional developmentagency, or informal where jurisdictions meeton a regular basis to discuss needs andprioritiesCities need to be strategic and realistic inthe use of incentives. There is no undisputedevidence that tax cuts and sales tax exemptionsautomatically lead to investment 155 andincentives should avoid creating an artificialset of conditions which become the onlyattraction for investment. Assessing the capacityto sustain incentives over time is critical toprevent investment migration. City leadersmust cooperate with other cities to establishincentives because competition betweenadjacent jurisdictions for incentives can lead tofalling land prices or labour standards. Marketaccess, a stable socio-politico environment, easeof doing business, reliability of infrastructureand utilities, and availability of skills are some ofthe most important elements in choosing whereto do business. For example, corporationsput a high value on being able to set up asingle-office where they are offered inwardinvestment, uncomplicated business licensingand assistance.Spatial planning incentives• Land consolidation into single-ownerlarger parcels to achieve critical massfor investor-led projects• Infrastructure improvements, includingtelecommunications, roads, water andsanitation, and accessibility to ports,airports and train stations• Industrial and business parks withappropriately priced serviced land,next to transport infrastructure andother specific needs of sought-afterindustries• A supply of affordable workspacefor start-ups in targeted industries,encouraging clustering, synergies andinnovation.132