Stimulating urban redevelopments through value capturing
An explorative study into the characteristics, benefits and ideal context for enabling the developers’ contribution to public space
J.J. de Koning (TU Delft - Architecture and the Built Environment)
Karel Van den Berghe – Mentor (TU Delft - Urban Development Management)
P.W. Koppels – Graduation committee member (TU Delft - Real Estate Management)
More Info
expand_more
Other than for strictly personal use, it is not permitted to download, forward or distribute the text or part of it, without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license such as Creative Commons.
Abstract
There is a big demand for housing in the Netherlands and a significant portion of that demand can be facilitated through urban redevelopments. Urban development is hindered by financial barriers that cause public financial deficits. Stimulating urban redevelopment can be achieved by stimulating feasibility. The developers’ contribution is a value-capturing tool that can facilitate private contributions to public space. Through contributions in public space, feasibility can be stimulated by optimizing and widening the developers’ business case. Using the Delphi method, a panel of developers was formed to analyse the relation between the developers’ contribution and developer decision-making in practice. Decision-making is determined by the type of contribution, benefits for the developer, a context and conditions. Private contributions to public mean taking responsibility in some way. Doing this can add value in various ways, but developers are mainly driven by financial aspects. There are certain conditions to doing the contribution, of which the level of financial feasibility is the most important. The willingness to contribute is highest when a municipally adopts a passive role. Developers should be aware of the benefits and municipalities must be aware of the context that enables private contributions. Further research could improve the significance and confidence in the findings.