Densification and diversity of urban functions

URBAN DENSIFICATION, PROJECTS' MAIN OBJECTIVE FOR 41% OF RESPONDENTS

Densification makes it possible to avoid urban sprawl, in accordance with the objectives of the Grenelle II environmental pact and particularly:
- to preserve agricultural, natural and forest land;
- to build less dispersed and therefore less costly infrastructure (roads, rail, water, power, etc.)
According to Alain Philip, Deputy Mayor, Town Planning, Communauté Urbaine de Nice:
« We are not creating densification just to create densification; we have to build a sustainable land ».

To avoid urban sprawl, one of respondents' priorities is to establish a coherent transport network encouraging inhabitants, retailers and companies to move into well connected areas.
This objective comes above economic regeneration and vitality (31%) and urban quality (28%).
Olivier Reguer, Town Planning Director of the city of Angers, underlines about the Mayenne Capucins project: « The goal is to provide the Angers inhabitants with a good living environment, close to the city centre and to avoid that they leave to the outskirts ».

THE DIVERSITY OF URBAN FUNCTIONS INCLUDED IN THE MAJORITY OF PROJECTS

By grouping housing (90%), offices (90%), retail space (77%), and sports (33%) and cultural facilities (44%) in the same zone, the objective is to create vibrant districts, living areas with different paces of life, lively day and night, during the week and at weekends. Diversity may also relate to the buildings themselves. In this case, the buildings incorporate several functions: traditionally retail space on the ground floor, housing and offices on the upper floors and even some cultural or sports facilities. But this adds an additional level of complexity, particularly in the construction of the building and management of the co-ownership. Furthermore, the question of reversion of functions also emerges: some buildings are designed to change function and evolve over time, with offices converted into housing for example.

PROJECTS FAVOURING CITY CENTRES

Although the majority of projects are carried out in city centres or district centres, the outskirts are also a focus, both in terms of new constructions and renovations. According to Alexis Mariani, Head of Urban and Natural Land of Lille Métropole, the industrial landscape evolution explains partially this trend: « Industries have left numerous wastelands in our city centres. An urban renewal is to rebuild the city from these wastelands by rehabilitating them and by including them to the rest of the districts ».

The improvement and redevelopment of entrances to the town are also among respondents' priorities.

PUBLIC-PRIVATE PARTNERSHIPS (PPP) INCREASINGLY COMMON, BUT NOT NECESSARILY SUBJECT TO A CONTRACT

The town planning professionals surveyed do not fully understand PPP in a legal sense (Partnership Contract pursuant to the French ruling dated 17 June 2004).

For them the term "public-private partnership" is a generic term describing relations between private sector organizations and the public sector, in order to bring resources and skills from the private sector to help carry out town planning projects. PPP covers a wide array of cooperation agreements, ranging from flexible, informal and strategic partnerships to service contracts such as DBFO (design, building, financing and operation) and formal co-structures created by the project.
If 12% of the respondents only have already carried out a project governed by a formal partnership, 100% of them explain that they have already implemented a PPP.

PPP in a broad sense – partnership between public and private players – emerges as a vital solution. According to Eric Ruiz, Manager of the Territorial Cohesion Service of the Communauté d’Agglomération de Grenoble: « It’s even a survival solution. Since the State withdraws, the local actors are left alone. In the current situation, the only way is to develop public private partnership in a broad sense ».

This is because, due to the increase in local authorities' responsibilities following decentralisation and the withdrawal of the State, public and private players come together to finance projects, share responsibilities and access skills they do not possess internally. For many PPPs, the private sector takes care of the financing and construction, while the local authorities provide the land. 

LAND CONTROL AND POLITICAL CHANGES: PROJECTS' MAJOR OBSTACLES

Among the most common obstacles encountered, 23% of respondents mention control of land and 21% political changes during the course of a project. Legal problems (disputes, claims, etc.) come in third place at 15%. Obstacles become more numerous the longer the duration of the project (often more than 10 years).

These obstacles are now properly taken into account, even though no miracle solution exists. For instance, adequate time is incorporated from the study phase and research is carried out to find innovative solutions to work around the obstacles: reversion of functions, for example, can enable a building's use to evolve over time to adapt to changes in the property market, to problems linked to the time taken to complete projects or to changes in political priorities. 

"The results of this survey underline the importance of public-private partnerships in the management of quality urban projects," emphasizes Marc Vaquier, Chairman and CEO of MAB Development France. "This is because PPPs allow local authorities to harness the efficiency of the private sector in terms of the project's financing, construction and technical management, as part of a long-term collaboration. In order to succeed with a complex project covering various urban functions, it is necessary from the outset to have a clear and detailed definition of the project's objectives as well as each party's responsibilities and then to be each be flexible during the fulfilment phase."

Survey methodology
Development Institute International, a specialist in BtoB market surveys, conducted telephone interviews between May and July 2011 among a target of 50 decision-makers from the town planning sector in France: local politicians, managing directors, directors, town planning and development directors of local authorities with more than 50,000 inhabitants, public development bodies (EPAs) and mixed economy corporations (SEMs). A flash survey via an internet questionnaire supplemented the qualitative results. Respondents were asked about their most recent significant town planning project.

Click here for the survey.

MAB Development
MAB Development is part of the Rabo Real Estate Group and has branches in the Netherlands, Germany and France. It focuses on the development of multifunctional projects, working with private and public partners to achieve integrated solutions for city-centre locations that combine housing, retail spaces, parking facilities and offices.  MAB's dedicated knowledge of the market and rich experience in the development of innovative concepts are key assets.

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