Search for sustainable land use policy solutions: a regional case of municipalities in financial danger European Real Estate Society Conference th Jun 2014 Brano Glumac, PhD

/ Department of the Built Environment Land acquirement by municipalities Municipality is an active stakeholder 1990s Vinex-wijken Land investment and land transformation at cities outskirts Due to economic conditions land demand declined Significant financial losses with remained land surplus Financial danger Page 1

/ Department of the Built Environment Characteristics of municipal land supply Page 2 LIDLNIDOther supply Valuation based on:Future land useCurrent land use Administrative status: All planning procedures finished (determined in zoning plan) Council decision for future development No council decision Status of book value: Activated on municipal balance and financial estimate of land development is at least once a year updated Activated on municipal balance and process and interest costs are annually added Not activated Actions when losses occur:A provision is arranged or amortized directly from book value when losses in land development occur Amortized directly from book value or transferred to LID when book value is higher than market value n/a

/ Department of the Built Environment Sustainable transformation brownfield vacancy energy upgrade land readjustment → land book (re)value → land use policy → financial gains Scale Effected stakeholders Page 3

/ Department of the Built Environment Select & Suggest Procedure Methodological procedure to select municipalities in financial danger and suggest land policy solution Multi-Criteria Decision Analysis (MCDA) MCDA is a decision-making tool developed for complex multi-criteria problems that include qualitative and/or quantitative aspects of the problem in the decision-making process Fuzzy Delphi Method (FDM) fuzziness due to human factor in evaluation Page 4

Selection Procedure for Municipalities / Department of the Built Environment Page 5 MCDA 67 Municipalities scanned Financial data Municipalities Risks Identified

Municipalities in Financial Danger / Department of the Built Environment Page 6 Criteria for Municipality selection: Land supply per inhabitant Land supply as share of the total assets Land supply minus the total reserves Total land supply

Municipalities in Financial Danger / Department of the Built Environment Page 7 Risk Indicators (additional Criteria): book value for different types of land use square meters of land uses actual resistance capacity arranged provisions taken losses on land developments cooperation between municipalities

Municipalities in Financial Danger Overview20 Municipalities / Department of the Built Environment Page 8

Suggestion Procedure for Municipalities / Department of the Built Environment Page 9 FDM 2 Sustainable Policy Solutions List of success factors 28 Experts 13 from municipality 15 consultancy and academia 60% response rate Most applicable policy

Sustainable Policy Solutions / Department of the Built Environment Page 10 Actual Policies monitor the risks more frequently reprioritizing or cancelling developments revaluate book value to agricultural land phasing of land development is stretched decreasing land prices coordination of stakeholders (industrial & business)

Sustainable Policy Solutions / Department of the Built Environment Page 11 Proposed Sustainable Policies solutions: regional and financial settlement

Sustainable Policy Solutions / Department of the Built Environment Page 12 Proposed Sustainable Policies solutions: temporary use / solar panels municipality only gains a lease hold for the use of the land two times and up to almost seven times more possible revenues than agricultural use annual lease hold can be used to cover the annual interest costs

Sustainable Policy Solutions / Department of the Built Environment Page 13 CodePSPSabcdSTDEV Rank Municipal Experts (A) PSPS_R Regional and financial settlement of residential developments PSPS_T Temporary use of municipal land by the placement of solar panels Academic and Consultancy Experts (B) PSPS_R Regional and financial settlement of residential developments PSPS_T Temporary use of municipal land by the placement of solar panels All respondents (A+B) PSPS_R Regional and financial settlement of residential developments PSPS_TTemporary use of municipal land by the placement of solar panels Comparison by FDM

To Conclude / Department of the Built Environment Page 14 Procedure to evaluate municipalities in financial danger Assessment of the potential policy interventions Improve the awareness of sustainable land use policies in Noord-Brabant region Beneficiary/Stakeholders

Thanks! / Department of the Built Environment Page 15

Factors Overview / Policy 1 / Department of the Built Environment Page 16 PSPS: Regional and financial settlement of residential developments All respondents (A+B) W = (a,b,c,d) CodeCategoryFactorabcdSTDEVRank R01FinancialBook value R02FinancialCompensation for the financial settlement R03Financial Obligation to donate share of revenues for the financial settlement R04SpatialBond with current municipality R05SpatialCompetitiveness in region R06Spatial Sort of residential developments in a region R07AdministrativeRole of the province R08AdministrativePolitics R09AdministrativeCertainty

Factors Overview / Policy 2 / Department of the Built Environment Page 17 PSPS: Temporary use of municipal land by the placement of solar panels All respondents (A+B) W = (a,b,c,d) CodeCategoryFactorabcdSTDEVRank T01FinancialParticipation of energy cooperative T02FinancialFinancial feasibility T03FinancialRun-time period T04SpatialScale of solar park T05SpatialLocation T06AdministrativeAmbitions in the field of sustainability T07Administrative Legislation regarding collectively net metering T08AdministrativeFlexibility of zoning plan T09AdministrativeAdministrative support