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2-5-2015 Challenge the future Delft University of Technology Lessons from Private Sector-led Urban Development Projects in the Netherlands & the UK | ERES.

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Presentation on theme: "2-5-2015 Challenge the future Delft University of Technology Lessons from Private Sector-led Urban Development Projects in the Netherlands & the UK | ERES."— Presentation transcript:

1 Challenge the future Delft University of Technology Lessons from Private Sector-led Urban Development Projects in the Netherlands & the UK | ERES Conference | Erwin Heurkens MSc.

2 2 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Urban Development Projects Private Sector-led Urban Development Projects “An urban development project in which private actors take a leading role and public actors adopt a facilitating role to manage the development of an urban area, based on a formal public-private organizational role division.”

3 3 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Power & Value Shift? Societal Context Societal value & State-Market power shift

4 4 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Public: Local planning authorities “Robert Moses time is no more”: Decreasing financial means Decreasing land for development Decreasing labour capacity (& quality) Private: Real estate developers “Donald Trump time is no more”: Economic & financial crisis Decreasing investment (equity/loans) More dependent on ‘real’ demand Economic Context Economic crisis/transition

5 5 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Theoretical Concepts Planning & Market Concepts Boelens et al. (2006): ‘Planning without government’ Nadin et al. (2008): ‘Planning & development processes’ Adams & Tiesdell (2010): ‘Planners as market actors’ Van der Krabben (2011): ‘Facilitating government’ De Zeeuw (2007): ‘Forward integration of market actors’ Organisational & Managerial Concepts Bult-Spiering & Dewulf (2006): ‘Public-private partnerships’ Osborne (2000): ‘Lack of management insights in partnerships’ Klijn (2008): ‘It’s the management stupid’ Mintzberg (2010):‘Management is a domain of practitioners’ Laglas (2011):‘Collective project leadership’ De Leeuw (2002):‘Open systems-thinking’

6 6 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Conceptual Integrative Management Model Urban Development Projects Context Organization Management Effects Objective: Unravelling complexity Understanding mechanisms Understanding management Not pure causal relations

7 7 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Management Concept ‘Management consist of any type of direct influencing’ Management Activities Project management Process management Management Instruments Management Resources Management Tools

8 8 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Methodological Framework Research Question What can we learn from empirical private sector-led urban development projects in the Netherlands & the UK in terms of the collaborative and managerial roles of public and private actors, and the effects of their (inter)actions?

9 9 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Amsterdam, Park de Meer Den Haag, Ypenburg Dl.pl.20 Enschede, De Laares Maassluis, Het Balkon Middelburg, Mortiere Naaldwijk, Woerdblok Rotterdam, Nieuw Crooswijk Tiburg, Koolhoven Tilburg, Stappegoor Tilburg, Wagnerplein Utrecht, De Woerd Velsen, Oud-IJmuiden

10 10 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Empirical Findings PSLUD Projects NL Management

11 11 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Organization Intensive public-private collaboration on designs Public actors get financially involved (risks) Private actors show dependent attitude Management Public actors not ‘letting go’, no private design flexibility Public actors hardly use stimulating & capacity building tools Private actors rely on ‘hard’ management resources Effects Efficiency problematic Effectiveness & spatial quality achievable Conclusions Complex inner city areas are manageable with PSLUD Conditions: scale, duration, flexibility & competencies Empirical Findings PSLUD Projects NL

12 12 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Bristol Harbourside

13 13 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Liverpool One

14 14 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Empirical Findings PSLUD Projects UK Management

15 15 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Organization Intense p-p collaboration: designs, (informal) partnerships Risk-avoiding public actors Long-term private commitment Management Public actors influence by variety of management measures Emphasis on negotiations & stimulating private actors Private actors manage community involvement & use active leadership Effects Efficiency problematic Effectiveness & quality achievable Conclusions Complex inner city areas are manageable with PSLUD Conditions: scale, duration, flexibility, competencies & favourable market Empirical Findings PSLUD Projects UK

16 16 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Conclusions General Comparison NL-UK Many similarities Differences on: political influence planning policies role division risk division requirements public tools

17 17 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Empirical Problems NL & Empirical Recommendations UK ‘We against them relationship’ instead of a cooperative sphere > Cooperating in pre-development stage to create public support & commitment Lack of public role consistency during realization stage > Respecting agreements, identify conditions for cooperation (in realization stage) Thin line between public judgment and control of private plan proposals > Defining clear process agreements about moments of control & discussion Commitment and competencies of public project managers > Appointing public pm’s that connect the planning & development process Communication with and involvement of the local community > Making a clear communication plan to involve communities & businesses Lack of public management in development process > Searching for public opportunities to influence development without land & capital Conclusions (1)

18 18 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Inspirational Lessons UK>NL Not ‘less’ but ‘other’ public management Public & private boundaries blur Public & private attitude need change Private commitment has public benefits Leadership happens on different levels Facilitating complex projects possible Conclusions (2)

19 19 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Safeguarding Public Interests Determining ‘the’ public interest difficult (diversified society) Combine hierarchical, market & network mechanisms Use of negotiable & non-negotiable public safeguarding tools Apply within different development/planning process stages Recommendations (1)

20 20 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Alternative (Private) Financing Instruments Recommendations (2)

21 21 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Impact for theory and practice It’s the management, stupid! It’s the market, stupid! Need to rethink State-Market relations Need to bridge theory-practice gap Need to understand real estate market decisions Need to educate planners and developers in skills & attitude Need to apply new perspectives To conclude

22 22 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Contact details Erwin Heurkens MSc. Delft University of Technology Faculty of Architecture Department of Real Estate & Housing Chair of Urban Area Development Twitter: eheurkens

23 23 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Seattle South Lake Union

24 24 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Empirical Findings PSLUD Projects USA Management

25 25 ERES 2012 – #211 – E.W.T.M. Heurkens | 22 Organization Less p-p Collaboration Risk-avoiding & understaffed public actor Long-term private commitment & de-risking Management Public actor manages by zoning regulations Private leadership on different levels/phases: true PSLUD project Effects Efficiency, effectiveness & spatial quality achievable Conclusions Complex inner city areas are manageable with PSLUD Conditions: scale, duration, flexibility, competencies, phasing & demand-driven Empirical Findings PSLUD Projects USA


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