European Real Estate Society Conference 2014 26 th Jun 2014

1. Search for sustainable land use policy solutions: a regional case of municipalities in financial danger European Real Estate Society Conference 2014 26th Jun 2014 Brano Glumac, PhD

2. 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 financiallosses with remained land surplus • Financial danger Page1 / Department of the Built Environment

3. Characteristics of municipal land supply Page2 / Department of the Built Environment

4. Sustainable transformation • Sustainable transformation • brownfield • vacancy • energy upgrade • land readjustment → land book (re)value • → land use policy • → financial gains • Scale • Effected stakeholders Page3 / Department of the Built Environment

5. 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 Page4 / Department of the Built Environment

6. Selection Procedure for Municipalities • MCDA • 67 Municipalities scanned • Financial data 2011 • 20 Municipalities • Risks Identified Page5 / Department of the Built Environment

7. Municipalities in Financial Danger • 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 Page6 / Department of the Built Environment

8. Municipalities in Financial Danger • 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 Page7 / Department of the Built Environment

9. Municipalities in Financial Danger • Overview • 20 Municipalities Page8 / Department of the Built Environment

10. Suggestion Procedure for Municipalities • FDM • 2 Sustainable Policy Solutions • List of success factors • 28 Experts • 13 from municipality • 15 consultancy and academia • 60% response rate • Most applicable policy Page9 / Department of the Built Environment

11. Sustainable Policy Solutions • 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) Page10 / Department of the Built Environment

12. Sustainable Policy Solutions • Proposed Sustainable Policies solutions: • regional and financial settlement Page11 / Department of the Built Environment

13. Sustainable Policy Solutions • 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 holdcan be used to cover the annual interest costs Page12 / Department of the Built Environment

14. Sustainable Policy Solutions • Comparison by FDM Page13 / Department of the Built Environment

15. To Conclude • 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 Page14 / Department of the Built Environment

16. Thanks! • b.glumac@tue.nl Page15 / Department of the Built Environment

17. Factors Overview / Policy 1 Page16 / Department of the Built Environment

18. Factors Overview / Policy 2 Page17 / Department of the Built Environment