MODULE 1 – INTRODUCTION TO BROWNFIELDS
Module 1C – BROWNFIELDS REUSE
MODULE 1 consists of 4 parts.
Author:
Jirina Bergatt Jackson
Contact:
[email protected]
MODULE 1A Introduction to Brownfields
Slides:
21 (1 + 19 + 1)
MODULE 1B
Slides:
Land Use
27 (1 + 25 + 1)
MODULE 1C Brownfields Reuse
Slides:
28 (1 + 26 + 1)
MODULE 1D Visualising Brownfields
Slides:
25 (1 + 23 + 1)
List of References:
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CABERNET (Concerted Action on Brownfield and Economic Regeneration Network [online ] [
cit-12-01-2012] http://www.cabernet.org.uk
Cobraman project web site [online ] [ cit-12-01-2012http://www.cobraman-ce.eu [ ]
Circular Flow Land Use Management (CircUse) web site [online ] [cit-12-01-2012]
http://www.circuse.eu
Sustainable Brownfield Regeneration: CABERNET Network Report [online ] [ cit-12-01-2012]
http://www.cabernet.org.uk/resourcefs/427.pdf
Di Gaetano & A. Storm, E. Comparative Urban Governance, An Integrated Approach, Urban
Affairs Review, 2003, IIIVIII, Nr. 3, pp. 356-395.
Generaly we advise to study www.Smarte.org, for those who can read Czech we also recommend the
www.brownfields.cz a www.brownfieldsinfo.cz. As a good example of a City approach we also
recommend www.brno.cz or project RESCUE www.rescue-europe.com/ for self teaching course on
and REVIT for “Managing stakeholders” pack and for the PPP report on www.revit-nweurope.org/.
Also recommended is the project COBRAMAN report on other EU financed international brownfields
projects
and
the
tools
and
reports
they
offer
on
www.cobramance.eu/LinkClick.aspx?fileticket=zh5C88w8vNM%3d&tabid=65. We consider the CABERNET Final
report on www.cabernet.org.uk as a very useful reading.
Module 1 – Introduction to Brownfields
Slide 1
Manual – Slide 1
Title slide - please retain the authors´ names but you
can add your name for making presentation,
especially when adding your own examples.
Slide 2
Manual – Slide 2
Please shortly
presentation.
Slide 3
explain
the
content
of
the
Manual – Slide 3
If in any community exists a serious brownfield issue
(say over 10% of urbanise area are brownfields) than
for an effective addressing of such an issue the
responsibility has to be directly allocated to a named
manager.
A common strategy needs to be agreed on local/ sub
regional level and conditions have to be created for
the manager to be able to carry out his work.
Also the local authority institutional set ups may
need to be adjusted in order to deal more effectively
with this issue. For example in the Czech town
Uherké Hradiště, mentioned in the case study 2, the
mayor of the town had for more than 10 years
chaired the brownfield working group.
Partnership with other private and public sector
institutions should also be soughed in order to gain
experience and skills, which may be missing in local
administration set ups.
30
Module 1 – Introduction to Brownfields
Slide 4
Manual – Slide 4
Especially in location experiencing low market
demand, where there may be more than 10% of
urbanise areas brownfields, community leadership is
of a prime importance. See also the case study
Uherské Hradiště as an example how local authority
leadership can drive brownfield regeneration even in
location, which offered little market demand.
Slide 5
Manual – Slide 5
Quality location, suitable planning, brownfield site
ownership integrity, owners’ decision making ability,
attitude and an access to redevelopment knowledge
are the prerequisite of successful brownfield
regeneration.
Luck or ownership integrity, decision making and
abilities to support a common course can however
block a reuse of even the most excellently located
brownfield site for a number of years.
The other famous regeneration blockers are the
owners who have brought the brownfield sites not
for any reuse but for a speculation. For example, in
the Czech Republic, there are no tools, which can
help to motivate the brownfield speculators, to offer
their sites for redevelopment.
Slide 6
Manual – Slide 6
Barriers to brownfield regeneration are many, but
mostly they are all connected by an insufficient
communication between the key players and
stakeholders and by a lack of strategic outlook, which
can help to cohere actions and activities for synergy
effects.
31
Module 1 – Introduction to Brownfields
Slide 7
Manual – Slide 7
Drivers to brownfield regeneration can be devised
into several main categories
a) Market drivers
b) Administrative drivers
c) Cooperation drivers
Ask your students to devise these and other drivers
into the mentioned categories.
Slide 8
Manual – Slide 8
But remember many brownfields are superfluous to
market need as there are no activities, which can
reuse them. When addressing brownfield
regeneration potential and realistic estimates have to
be made about the actual market potential of local
brownfields and about a realistic rate of their
regeneration uptake.
Mitigatory measures need to be considered, where
brownfields may present risk to public health or to
the environment – this apply to the owners but if the
owners are not active, public administration has to
step in to remove such risks.
Slide 9
Manual – Slide 9
When considering pilot brownfield regeneration
projects, only projects which can meet the above
criteria should be considered. If there is not much
previous regeneration experience, than simpler and
smaller projects should be selected as pilots. All
these steps are aimed on reducing the regeneration
project risks because regeneration is less predictable
then new construction.
Slide 10
Manual – Slide 10
Motivation for brownfield reuse can have several
solutions. Market solutions can be based on the
profit or can be solved with the public intervention.
Socially motivated solutions should be considered in
the same respect. Mitigatory solutions are mainly
oriented for the public property.
32
Module 1 – Introduction to Brownfields
Slide 11
Manual – Slide 11
The goal for brownfield regenerations should be to
create an extra value, which is higher that a simple
sum of the regeneration costs. This may apply even
more in regeneration of project for social or
environmental reasons, where any return on
investment is usually negative. Here the
environmental of the social benefit values have to
outwait this project economic shortfall. Techniques
of evaluating these benefits exist, but as they are not
simple figure to add up, they are often viewed with a
suspicion.
To consider brownfield reuse scenarios and
brownfields reuse likelihood, data above local level
needs to be considered and also all available financial
instruments need to be understood.
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Module 1 – Introduction to Brownfields
Slide 12
Manual – Slide 12
This brownfields categorisation was adapted from
the CABRNET brownfield classification model for use
by the Czech local authorities. The fourth category
was added in order to identify the sites, which may
present public or environmental risks and which had
to de addressed by public administration, if their
owners failed to act.
The leverage ratio is a proportion of public to private
finance, which has to be expended for the project to
be realised. In B type sites for 1Euro public
expenditure private funding between 5 -10 times
larges should be expected and so on.
This leverage technique however counts only
investments.
But additional benefits, some of them can be
enumerated (increase in local budget), other cannot
be numerated (visual blight was removed, new
residence were encouraged to settle, more
community activities occurred, etc.).
Ask your students to mention more of these
innumerable benefits.
An experienced real estate professional can
categorise brownfields fairly quickly, it is for him as
easy as walking and he/she would be cc 90% correct.
But most of other professions have great problems
when asked to produce such a classification. Solution
to get the most consistency of this categorization is
to have one person only to classify all the
brownfields in the survey. This gives higher data
consistency. The other possible solution is to give
other people more guidelines so they to understand
how such a categorization is arrived at. IURS
experience is that even after further guidelines, other
professionals sill have problems with the A,B,C, (D)
classification.
Also one has to understand, that this classification
may in time vary, where conditions are external
condition for a particular brownfield or group of
brownfields are improved or are worsen.
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Module 1 – Introduction to Brownfields
Slide 13
Manual – Slide 13
This slide explains suitability of different categories of
brownfields for a different type of procurement. As
this is the CABERNET network illustration only A, B, C
categories are shown here.
For the public sector the most relevant activates here
are to help the owners to create A category
brownfields from the B category brownfields. And
create B category brownfields from the C category
brownfields. This is usually done by soft public
intervention or by informal measures. The goal of
such activities is to supporting solutions where the
private finance can pay for most of the regeneration
costs. The outcome should be a savings of public
investment funding into brownfield reuse.
C category brownfields regeneration always has to
have a very good social, historical or other reasons,
as the cost to the taxpayer for such regeneration is to
height. If an action in the C category is needed for
policy reasons, funding has to be devised for it (for
example from surcharging the Greenfield
development etc.)
Slide 14
Manual – Slide 14
These are parameters developed by IURS to classify
the Czech local communities’ development potential.
For your country this classification may vary a bit.
Brownfields of the A category can be found mostly in
the I. type communities.
Brownfields of the B category can be found in
selected parts of the I. type of communities, in the II.
type of communities and sometimes also in the III.
type communities.
Brownfields of the C category can be found in
selected parts of the II. type of communities and
mainly in III. type of communities.
Brownfields of the D category can be found
anywhere.
The influence of a location onto a brownfield in a
community is explained on the next slide.
35
Module 1 – Introduction to Brownfields
Slide 15
Manual – Slide 15
Real estate market is driven by tree principles: 1)
Location, 2) Location, 3) Location. This has also its
influence on brownfields regeneration chances.
On this picture of various brownfields we try to
explain the brownfields location issue.
The best chance for reuse usually have brownfields in
town centres (marked dark grey), where there is local
commercial demand, hence even brownfields in III.
type community have some chance for reuse as in
some circumstances, they may be of the B category.
Brownfields in the area surrounding the centre and
alongside the main traffic routes out of the town
(marked medium gray) have usually the next best
chance for reuse. In the II. type of town here would
be located usually the B category brownfields. But in
the III. type community brownfields located here are
all C category.
Brownfields located in the light grey area have the
lesser chance of regeneration. In I. type communities
here are located B category brownfields. In the II.
and the III. type communities here are located the C
category brownfields.
Slide 16
Manual – Slide 16
These parameters were developed by IURS some 10
year ago, to help the Czech local authorities to
understand their brownfields. Parameters for your
country may vary a bit.
Discuss with your students, which particular
parameters would apply in your country.
36
Module 1 – Introduction to Brownfields
Slide 17
Manual – Slide 17
These are options how brownfield can be reused.
What to do with a brownfield may depend not only
on brownfields category, but also on a need for
public services, which such a brownfield can provide.
This is why even the A category brownfield may be
re-naturalized and turned for example to a park. The
value of the part can be to the surrounding
community higher than the brownfields site
development value.
For the A and the B category brownfields temporally
uses may bring more visibility and improve their
reuse chances.
For the C category brownfields the re-naturalization
seem to be often a best option. The nature is
merciful and if for an approximately 15 years any
brownfield site is left to its own state, it becomes
overgrown by plants and trees, etc. Question is, if
this is a safe option for pubic, especially, where large
compounds of army or industrial property are failing
apart amides the sprouting vegetation.
Discuss the brownfields use options with your
students.
Slide 18
Manual – Slide 18
Market is not kind to brownfields. Investors much
prefer the Greenfield projects. Greenfield
development is faster, its financing is cheaper and
demands on consulting are lower. Greenfield project
are also much more predictable and much faster to
execute.
37
Module 1 – Introduction to Brownfields
Slide 19
Manual – Slide 19
This is an illustration how depended on the state of
the real estate market brownfield regeneration is.
The first picture illustrates, what happens when the
market is week. Even the A category brownfields do
find reuse less easily and many of the A category
brownfield sites are falling into the B category sites
development potential and the B category
brownfields are falling into the C category
development potential.
The second picture illustrates the changed situation
where the market is rising and the shift that the
market absorption for development project can
make to the various brownfield categories. In this
case, some of the B category brownfields are
becoming the A category and some of the C category
brownfields are moving up into the B category.
The last picture illustrates the different chances
between the Greenfield (blue line) and the
brownfields projects during the market curve.
Brownfields projects have a much shorter span of
interest even on a rising market. Investors start to be
interested in them only when there are signs that the
market is clearly rising and stop to be interested in
them the moment the market has peaked off.
Slide 20
Manual – Slide 20
This picture illustrates the rate by which the
improved information about the brownfields sites
can increase their value and reduce their site risks.
This however applies mainly to brownfields of the A
and B category. More information in form of surveys
or project proposals there exist about the site, the
higher is usually the site value and the lower are the
risks.
But one has to be aware, that some development
proposals may be so unsuitable that they may
actually reduce the site value and increase its risks
(for example making a scrap yard from the site). The
owners who, are renting their brownfields sites out
need to be aware about this.
38
Module 1 – Introduction to Brownfields
Slide 21
Manual – Slide 21
As previously indicated, public intervention may be
needed to sort out serious brownfield plight. Most of
the intervention should be nonmonetary, aimed at:
a) improving public awareness about the issue,
b) at improving brownfields owners knowledge and
ability to act,
c) supporting project preparation on brownfields,
d) supporting mitigation measures, where
brownfields present risks,
e) in limited and strictly justified situation to support
the profit gap on B category brownfield
development.
Slide 22
Manual – Slide 22
Stakeholders’
involvement
in
brownfield
regeneration is of a prime importance. It brings into
the project preparation process other realities,
experience and aspirations and generally it leads to a
better and more publically accepted regeneration
project.
But the stakeholders’ participation process handling
techniques may vary and so may the participation
outcomes.
Best for such participation can be institutionalized
formats, allowing budget pooling and responsibilities
and opportunities sharing. This form of an approach
to brownfields regeneration in the Central and South
East European area is not a norm and not that many
examples of this approach exist. But those which
exist can serve as examples of good practice.
Slide 23
Manual – Slide23
Stakeholders function on many levels and there
„horses for courses“. Some stakeholders need to be
engaging to reach the national or the international
level, other are engages for their local or regional
knowledge. But their input is often invaluable and in
many cases stakeholders can also be turned into
project users or project owners.
39
Module 1 – Introduction to Brownfields
Slide 24
Manual – Slide 24
For brownfield regeneration project the consultant’s
team is usually larger and involves more professions.
Also regeneration project need more and a longer
preparation time, which makes it more expensive
and mainly more risky – market may change, the
potential users may not be interested any more etc.
Consulting teems on brownfields regeneration
project need to have previous experience with large
projects and also with regeneration projects. When
considering regeneration of brownfields surrounded
by residential districts, such a design team needs also
to have a strong PR orientation in order to gain
residents interest and support for the development.
Such a project also needs to demonstrate clear
benefits to surrounding neighbourhoods.
Slide 25
Manual – Slide 25
Brownfield regeneration is a creative team work.
Cross-fertilization of ideas drives the brownfields
regeneration project success.
40
Module 1 – Introduction to Brownfields
Slide 26
Manual – Slide 26
Leadership in brownfield regeneration is of a prime
importance. On individual projects, leadership can be
provided by private sector. But in situation, where
the development risks are too high for private sector
to act, then the leadership needs to be provided by
the public sector. Which level of public sector has to
provide such a leadership depends on what is to be
addressed. The importance of the local level
leadership is demonstrated by the case study 2 on
Uherské Hradiště. The regional and institutional
leadership was demonstrated by the Saxony
examples-see
http://urbact.eu/fileadmin/Projects/Bring_up/output
s_media/BRING-Baselinestudy_final.pdf
As pointed out previously, without a vision, strategy,
leadership and a clear commitment, brownfield
regeneration is unlikely to succeed.
Slide 27
Manual – Slide 27
Discuss these conclusions with your students; ask
them what they can add.
Slide 28
Manual – Slide 28
Please, open discussion.
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