Changing public space

shopkeepers. If they do well, they can pay rent and increasingly do so in the course of time.
But the shopkeepers can only have a high turnover if they can attract customers. Attractive
public space might appeal these customers. Public space of high quality thus eventually leads
– via increased rents – to a higher return on the investor’s equity in buildings. According to
Taşan-Kok (2004: 69), there is an intersecting interest of international investors and municipal
governments. Investors want to diversify their portfolio structure and seek international
investment opportunities, while municipal governments aim to capture investment flows. This
illustrates the interdependency of the public and the private sector in urban redevelopment
projects discussed in Section 4.2.2.
4.3.3 Role and objectives of the stakeholders
Besides the government, developer, and investor, there are other stakeholders that can play a
significant role in the redevelopment of public space. These stakeholders differ from the main
actors because they are usually less active and decisive during the redevelopment. However, when
stakeholders are relatively large (such as big retail chains) or united (for example associations
of local entrepreneurs or residents’ associations) they can become influential and act as actor.
Organisations that serve to preserve monuments and historic buildings can also play a significant
role in redevelopment processes.
Because the stakeholders’ group is not homogeneous, the motives and level of involvement
in the redevelopment can range per stakeholder. For retailers, the main motive to be in favour
of redevelopment of public space is the expected increase of sales as a result of the upgrading.
However, retailers might also oppose the redevelopment, as they fear increased competition and
a loss of income by being less accessible during the reconstruction period (Spierings, 2006). Even
if they approve the redevelopment, retailers might not always be willing to be actively involved.
They worry about the free-riders problem in which they contribute to the redevelopment, while
others do not and still profit. Moreover, they might feel that the redevelopment of public space
is a state-task and not their responsibility. In turn, residents of the city centre might favour
the upgrading of their neighbourhood, but they can also fear an increase of traffic, people, and
general busyness due to redevelopment. Preservation groups might oppose construction activities
or demand prior archaeological research, thereby lengthening the refurbishment and making
it more expensive. They can also favour redevelopment, as the upgrading might lead to more
historical knowledge and a new design with reference to the local urban heritage (Section 4.2.2).
Chapter 8 describes the roles and objectives of stakeholders within the redevelopment process of
the cases, as well as those of the local government, developer, and investor.
4.4 Private-sector influence on redeveloped public space
The increased private-sector involvement is assumed to have an influence on the design and
management of redeveloped public space. Two possible effects seem most prevalent from the
academic literature. The first is that private-sector involvement leads to an increase in budgets
available for the quality of the design and management of public space. Investors and developers
are able to allocate more assets to this purpose than the local government. Yet one of the main
tenets of private property is the right to exclude and enforce (Scruton, 1982). In exchange for
investment, the private sector might want to have a strong voice, resulting in, for example, an
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