Public-Private Negotiation of the Increase in Land or Property Value by Urban Variant: An Analytical Approach Tested on a Case of Real Estate Development

Abstract

The insufficiency of public resources in Europe, which increased due to the debt crisis of 2010, has raised the need for combined financing forms to activate urban settlement transformation processes. Among these is the partial recapture of surplus value generated by interventions that derogate from urban planning tools as a regulation form of the differential rent phenomenon. This form of financing recalls the concept of land value recapture; it consists of an extraordinary charge of urbanisation (ECU) paid to policymakers. In Italy, the national law (2014) assigns responsibility for ECU determination to local decision-makers. Their plurality of operational guidelines are generally inspired by the transformation value criterion, and are sometimes methodologically incoherent and dispersive in their modus operandi. To support policymakers in the programming of public works within the limits of their available financial resources, the aim of the present work is to test a coherent, rational and applicable procedure in the field of estimation in order to analytically determine the “surplus value” generated by the intervention ante and post urban variant. The proposed procedural model is based on the structural characterisation of multiple methodologies used in practice and in the literature. The procedure was tested on a case study in the Italian context of Rome City. The results deduced from its implementation clarify that the ECU evaluation must also appropriately weigh the mutual benefits according to the “timing” and “riskiness” of the investment.

Governance Discourses and Image Management Strategies in Large-Scale Urban Development Projects—How a Shifting Context and Actor Relations Influence Planning

“…Within this process strategy, participants were given the flexibility to co-design the process under consideration of the limitations of the process framework. Due to the shared goals of private agencies who demanded a certain level of urban quality for their operation and the public agencies' desire to minimize costs of investment into intensive urban developments, the publicprivate partnership was the initial urban management path for this project [36]. To align diverging interests, the city of Amsterdam established the 'Project Office Zuidas' as a central institution that communicated the project's ambitions and brought actors together.…”

An Innovative Approach for the Enhancement of Public Real Estate Assets

“…The difficulties resulting from the economic crisis that have characterised the recent decades have often made public-private partnerships (PPPs) the only viable contractual form for financing urban regeneration projects or public assets [25][26][27][28]. Despite this awareness, this contractual form for the realisation of public projects is still little used.…”

A Meta-Analysis of the Public-Private Partnership Literature Reviews: Exploring the Identity of the Field

“…As a procurement approach, PPP has shown to be effective for developing all types of strategic properties, including land, residential, commercial, and industrial real estates (Garrett & Kate, 2014;Gupta & Tiwari, 2022). Also, the interest in PPP applications has increased due to the need to renovate outdated or own underutilised properties that, otherwise, could be less efficient by public authorities themselves (Garrett & Kate, 2014;Guarini et al, 2021).…”