First AID for Area Development

Abstract

The conditions that determine when and why individuals can be forced to contribute to collective services are part of an ongoing debate in the spatial planning and urban governance domain. In this thesis the problem of and a solution to free-ridership in area developments with existing property owners alongside incoming real estate developers, where private and societal actors want to invest in adding extra quality to the area through collective services or amenities, is discussed. The goal of the research is to design an instrument that helps private and societal parties in achieving this addition of extra quality, whilst at the same time giving public parties the handles to deal with these processes. This instrument is called the Area Improvement District, or AID. The research consists out of a literature review and case studies. These techniques yield a theoretical framework, empirical insights and legislative proposition. The results have been synthesised in a proposal law for the AID, based on extension of the existing Dutch BIZ law. The instrument now seems predominantly applicable in the exploitation phase, as there is a lack of knowledge with regards to what investments in collective services result in increased real estate value. However, once more knowledge is acquired regarding this, the instrument could add significantly more quality to both new and existing areas.