urban age city transformations conference - LSE Cities

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URBAN AGE CITY TRANSFORMATIONS CONFERENCE October 2013

Jürgen Bruns-Berentelg HafenCity Hamburg GmbH The economics of good planning: integrating Hamburg All rights are reserved by the presenter www.lsecities.net

The Economics of Good Planning Integrating Hamburg and HafenCity

Jürgen Bruns-Berentelg CEO HafenCity Hamburg GmbH

Urban Age City Transformations Conference, Rio de Janeiro 24 October 2013

HAFENCITY: STRONG SEMI-STATE ROLE NEW FORMATION OF INTERESTS AND MARKETS

City State of Hamburg

Private / Public Sector

Private Sector

HafenCity Hamburg GmbH (Quango) a)

Setting the political agenda

b) State Commission approvals - development plans - land sales c)

Prepares and grants: - development plans - urban design (guidelines) - building permits

d) Finances and builds, partly as public-private joint venture: - schools - university - concert hall - science centre - subway

Financing - Acts as land owner of special asset “city and port” - Finances its activities from land sales process Developing - acts as master developer - development planning - plans and builds infrastructure (streets, bridges, quay walls) - public spaces (promenades, parks) - sets new frameworks for quality enhancement and innovations - acquires investors, sells properties - organizes communication, marketing

Private and institutional developers and investors - development of individual sites (exception Überseequartier: central retail area, 16 buildings)

OUTLINE

• The Hamburg Background • HafenCity: Basic Features of Urban Ambition • The Public and Private Value Generation Process

Vortrag Datum

THE ECONOMIC TRANSFORMATION OF HAMBURG HAMBURG‘S OPPORTUNITIES OF THE NINETIES

Economic Transformation: Hamburg‘s New Opportunities in the Nineties •

Regaining a central position in the European port economy (the Iron Curtain between socialist Eastern Europe and capitalist Western Europe 50 km away from Hamburg restricted it‘s hinterland)

•

High growth potential of the BRIC states could be absorbed due to strong established trade connections

•

The economic and political restructuring of the 70‘s, 80‘s and early 90‘s made available major areas for urban redevelopment, specifically in the inner city

THE ECONOMIC TRANSFORMATION OF HAMBURG POSITION IN THE POLYCENTRIC URBAN STRUCTURE OF GERMANY

Hamburg‘s Position in the Polycentric Urban Structure of Germany (Berlin, Hamburg, Munich, Frankfurt, Stuttgart …) •

second most populous city in Germany 1,8 Mio inhabitants (city), 4,9 Mio inhabitants (metropolitan area)

•

second most important sea port in Europe (but 105 km away from the North Sea, thus position of port as economic driver fraught with risk)

•

strong global integration with broad mixed use economy but weak technology sector (in comparison to Munich and Stuttgart) except aircraft manufacturing

•

one of the wealthiest city regions in Europe GDP per capital in purchasing power no. 4 in EU 27

•

governance structure: municipality and state (identical bounderies)

HAMBURG‘S GROWTH STRATEGY

“Metropole Hamburg – Growing City” (2002) The vision “Growing city” is conceived as a long-term development strategy, aimed to position Hamburg in the international competition of metropolitan regions and to lay the base for growth, both in terms of demographic and economic development.

The program is oriented along four goals: 1. “to develop Hamburg into an international, dynamic, innovative and culturally diversified metropolitan city 2. to promote above-average sustainable economic and demographic growth and environmental quality 3. to support Hamburg's talents and Hamburg's attractiveness for talents 4. to advance Hamburg as a fair-minded city worth living in.”

Strategic themes • upgrade port facitlities • support growth of SME-based economy Economic instruments • cluster strategies • state funded and state based agencies and a new development bank Added strategic foci within the last years • primary education and pre school education • strong increase in new built housing volume, including affordable housing

OUTLINE

• The Hamburg Background • HafenCity: Basic Features of Urban Ambition • The Public and Private Value Generation Process

HAFENCITY HAMBURG: KEY FEATURES

HafenCity • decision to establish HafenCity: 1997 • masterplan: 2000 • area: 157 ha • waterfront: 10.5 kilometers • central city area enlargement by 40% • 45.000 jobs • 6.000 homes for 12.000 residents • total investment volume approx. 10.4 bn € • time frame: 2000 – 2025 city area HafenCity

HAFENCITY HAMBURG THE ECONOMIC AND POLITICAL DEVELOPMENT LOGIC

•

low productivity land use in the core of the city (lost comparitive advantage as harbour space)

•

high value for waterfront and city center uses and thus high self financing capacity of transformation; potential for mixed used downtown expansion; growth in the city centre

•

assumed cross financing capacity for harbour expansion, paying for new major container terminal infrastructure (already restricted city state budget for infrastructure development in the nineties) due to “ownership dividend” of port land, owned by the city / state of Hamburg

•

the assumed “land ownership dividend” to be used for port expansion allowed for a fast seperation from port related to city related governance structure.

HAFENCITY: THE RADICAL TRANSFORMATION OF HARBOUR SPACE INTO URBAN SPACE

HAFENCITY: THE BASIC URBANITY CONCEPT

public spaces 10.5 km promenades, urban and water places, green (parks) 27 ha

culture/ entertainment facilities social institutions and networks

2.5 mio. visitors p.a.

knowledge milieu

places of consumption

(HafenCity University, Kühne Logistics University)

retail/food services/trades 200.000 m² Überseequartier (as core area) approx. 14 mio visitors p.a.

residential and office mixed use 12,000 residents, more than 45,000 jobs

approx. 2,3 Mio. sqm GFA

HAFENCITY: THE DRIVERS OF URBANITY

residential 12,000 inhabitants

matrix mix of use central urban driver

peripheral urban driver

peripheral retail / local supply & gastronomy

leisure

Spillover effects

tourism

consumer space Überseequartier retail/ gastronomy 65,000 m² GFA approx. 40,000 – 50,000 visitors per day

peripheral urban driver

tourism Spillover effects

science, education, social infrastructure

office 45,000 employees

leisure culture

culture

Retail and gastronomy average productive retail

peripheral retail / local supply & gastronomy

science, education, social infrastructure

highly productive retail with national and intern‘l orientation (including local supply)

Retail and gastronomy average productive retail

GENERATING THE STRUCTURE OF A NEW DOWNTOWN DIFFERENTIATION OF CONCEPTS AND USES (SECOND FLOOR)

GENERATING THE STRUCTURE OF A NEW DOWNTOWN DIFFERENTIATION OF CONCEPTS AND USES (GROUND FLOOR)

GENERATING THE STRUCTURE OF A NEW DOWNTOWN DENSITY AND PUBLIC SPACE (380 jobs and 95 inhabitants per ha)

HAFENCITY 2012 / 2013: URBANITY OF A NEW DOWNTOWN

HAFENCITY 2013: GENERATING A NEW MARITIME IDENTIY

OUTLINE

• The Hamburg Background • HafenCity: Basic Features of Urban Ambition • The Public and Private Value Generation Process

PUBLIC AND PRIVATE VALUE GENERATION PROCESS COMMUNICATIVE CAPITAL FORMATION

Communicative Capital Formation Generating the encounter capacity of people, institutions and places •

High public information density • for economic decision making • for social decision making

•

Expansion of social roles of institutions

•

Opening up public spaces for social and cultural tension

•

Privileging voluntary cooperation and networks

THE PUBLIC AND PRIVATE VALUE GENERATION

Economic Capital Formation a) increasing competitiveness, decreasing market risks, increasing the number of agents b) shifting from land price maximisation to quality generation • in general 70% concept / 30% price based allocation in public tenders • strong differentiation of prices to support spatial innovation, public ground floor uses and cultural uses and to generate a diverse population structure c) transforming spatial proximity into organisational / social proximity for economic cooperation and spillovers d) re-forming contractual (land) transfer processes into cooperation and learning processes and new incentives e) cultural capital formation f) the economics of green capital formation

ECONOMIC CAPITAL FORMATION: INCREASING COMPETITIVENESS, DECREASING MARKET RISKS

level of competition among privatesector investors

high type 1: residential and small scale office developments type 2: major office developments

I

medium

II centre in competition-/risk space

III a

type 3a: development of a shopping center

III

low

low

medium

high

type 3: large-scale mixed use development

state of Hamburg’s risk exposure

ECONOMIC CAPITAL FORMATION: INCREASING COMPETITIVENESS, DECREASING MARKET RISKS level of competition among privatesector investors

high

type 1: competitive spatial segmentation

I

type 3: competitive negotiation (Überseequartier)

I

medium

III II

II low

III

type 2: non-competitive allocation

low

medium

high

State of Hamburg’s risk exposure

ECONOMIC CAPITAL FORMATION: SHIFTING FROM PRICE MAXIMISATION TO QUALITY GENERATION / DIVERSIFIED URBAN ENVIRONMENT

PLAZA

PLAZA

PROMENADE

Mixture of Development Actors and Residential Concepts Investor / property developer (freehold, upmarket or luxury)

Building Joint Ventures (owner occupier communities) (freehold)

Investor / property developer (freehold, medium price level)

Living concept for seniors (freehold / rental, upmarket)

Investor / property developer (rental / freehold, medium price level)

Residential building cooperatives (rental)

Office

Public amenities at ground floor / wharf levels (e.g. shops, restaurants, cafes, galeries)

ECONOMIC CAPITAL FORMATION: SHIFTING FROM PRICE MAXIMISATION TO QUALITY GENERATION / DIVERSIFIED URBAN ENVIRONMENT

THE PUBLIC AND PRIVATE VALUE GENERATION

Economic Capital Formation a) increasing competitiveness, decreasing market risks, increasing the number of agents b) shifting from land price maximisation to quality generation • in general 70% concept / 30% price based allocation in public tenders • strong differentiation of prices to support spatial innovation, public ground floor uses and cultural uses and to generate a diverse population structure c) transforming spatial proximity into organisational / social proximity for economic cooperation and spillovers d) re-forming contractual (land) transfer processes into cooperation and learning processes and new incentives e) cultural capital formation f) the economics of green capital formation

TRANSFORMING SPATIAL PROXIMITY INTO ORGANISATIONAL / SOCIAL PROXIMITY FOR ECONOMIC COOPERATION AND SPILLOVER

designxport exhibition, library iF design

arcades public space

Greenpeace exhibition cultural exhibition space 2000 sqm galleries, office space

TRANSFORMING SPATIAL PROXIMITY INTO ORGANISATIONAL / SOCIAL PROXIMITY: UNILEVER HEADQUARTER

THE PUBLIC AND PRIVATE VALUE GENERATION

Economic Capital Formation a) increasing competitiveness, decreasing market risks, increasing the number of agents b) shifting from land price maximisation to quality generation • in general 70% concept / 30% price based allocation in public tenders • strong differentiation of prices to support spatial innovation, public ground floor uses and cultural uses and to generate a diverse population structure c) transforming spatial proximity into organisational / social proximity for economic cooperation and spillovers d) re-forming contractual (land) transfer processes into cooperation and learning processes and new incentives e) cultural capital formation f) the economics of green capital formation

ECONOMICS OF CAPITAL FORMATION: RE-FORMING CONTRACTS AS COOPERATION PROCESSES

Exclusive option granted to private developer for a limited period Features: • exclusive option granted by HafenCity GmbH to investor based on a fixed price (€ per m² GFS) and according to process rules • maximum option period 1.5 years • sale of the site after architectural competition and building permit granted •

payment of sales price 4 weeks after signing sales contract

• construction starts 4 weeks after signing sales contract Advantages: • quality enhancement (architecture + urban design); public access • stronger timewise coordination of developments → avoids free rider strategies • risk and cost reduction for developers • increase in investment value

THE PUBLIC AND PRIVATE VALUE GENERATION

Economic Capital Formation a) increasing competitiveness, decreasing market risks, increasing the number of agents b) shifting from land price maximisation to quality generation • in general 70% concept / 30% price based allocation in public tenders • strong differentiation of prices to support spatial innovation, public ground floor uses and cultural uses and to generate a diverse population structure c) transforming spatial proximity into organisational / social proximity for economic cooperation and spillovers d) re-forming contractual (land) transfer processes into cooperation and learning processes and new incentives e) cultural capital formation f) the economics of green capital formation

“PLANNING” CULTURAL SPACES IN HAFENCITY

Iconic Spaces

Mixed use Spaces

Public Spaces

(newly built, historical)

(newly built)

(newly built)

• Elbphilharmonie Concert Hall • Int. Maritime Museum • Science Center (not persued)

• ground floor • often publicly related • medium size spaces (1000-3000 sqm); spatially dispersed

• regular and temporary uses, wide range of activities • e. g. Magellan Terraces, Marco Polo Terraces • Lohsepark

Temporary Spaces

• former harbour spaces (limited short term use) • Strandkai • Baakenhöft (10 years) ships, 8000 sqm logistics space, open space, (waterfront)

Cultural Quarter

• Oberhafen Quarter • 20000 sqm former logistics space, (partially waterfront)

THE PUBLIC AND PRIVATE VALUE GENERATION

Economic Capital Formation a) increasing competitiveness, decreasing market risks, increasing the number of agents b) shifting from land price maximisation to quality generation • in general 70% concept / 30% price based allocation in public tenders • strong differentiation of prices to support spatial innovation, public ground floor uses and cultural uses and to generate a diverse population structure c) transforming spatial proximity into organisational / social proximity for economic cooperation and spillovers d) re-forming contractual (land) transfer processes into cooperation and learning processes and new incentives e) cultural capital formation f) the economics of green capital formation

CONCLUDING COMMENTS THANK YOU FOR YOUR ATTENTION!

Jürgen Bruns-Berentelg CEO HafenCity Hamburg GmbH

Five Innovation Paths of HafenCity: Development 45.000 jobs, 6.000 residential units: Is there more to it?

Basic Features (at Masterplan level, open Masterplan)

Evolution of Concepts, Strategies and Projects •

•

Differentiation of Activities and Actors Creation of New (Spatial) Concepts

Social Structure and Cohesion

Cultural /

• Waterfront and public space generation • Horizontal integration of Old and New City • Red brick as important building material

Not defined at masterplan level

Not defined at masterplan level

Not defined at masterplan level though to be provided. Favoural urban structure, and flood protection concept integrating flood protection, and car parking into a new urban topography

Acquisition Processes of Developers / Users

Identity Generation of HC as public space • • • •

Maritime Museum (2009) New Concert Hall Elbphilharmonie (2016)

Heating energy supply

• Spatial segmentation to create diversity and wide spread of market uses • Special emphasis on ground floor uses (public uses land price reduced) • Priority access for major (office) users (reduction of speculative development) • In residential development tender based either on fixed prices with concept priority or with concept priority (70% concept; 30 % price)

Residential Development also by Housing Cooperations and Community Housing (2003/4) 33% Affordable Housing Integration and price capped Housing 2010/11

Cultural quarter Oberhafen

Urban Structure

Identity

• Fine grained horizontal and vertical mixture of uses • High importance of network of public spaces with diverse features

Strategic Generation of Diversity of Uses Open mixed-use shopping area (reset program)



Land use efficiency and interaction density Walkability

U

Everyday uses Cultural activities Concerts Maritime activities

Cruse Ship Terminal Historical Maritime Heritage • Traditional harbour • Maritime museum • Historic quay walls

r

maritime culture Global and local representation; „lively place“

b

a

• Cultural programs • Cultural cooperation and network structure

(2010 ff.)

(e.g. schools, kindergarten, neighbour-hood meeting houses)

Social Networks and Neighbourhood Generation.

HafenCity University (2013) Kühne Logistics University (2010), Medical School and

(e.g. Netzwerk e.V.)

several smaller higher educational branch institutions

•




Social mix and encounter capacity (avoiding exclusion)

n

i

2003 / 2009 public tender (CO2 benchmark 2009, 92 % renewable)

Generating Physical and Legal Compatability of Harbour and Residential Uses in 2003 Building certification system 2007 (70 % gold standard in Central, 100% in Eastern HafenCity)

Urban Social Infrastructure

Concert Hall on Top of a Storage Building / Public Access (2016) Place for major companies and living „alike“



• New program for disabled and aged people (2013)

Science Spaces

Ecologiocal Sustainability

t

Cultural and knowledge milieu

y

Urban transport: • • • •

Hydrogen fuel station 2012 New subway U4 2012 Rental Bike system Electro Car sharing →

Reduction of car use from an average of 47% of traffic movements in Hamburg to 20-25 % in HafenCity

Multidimensional Sustainability

The Urban Design Culture of HafenCity Scalar Levels

I HafenCity (Community Level)

II Intermediate (Ten City Quarters)

Masterplan 2000 (flexible & open)

Masterplan Revision 2010 Eastern HafenCity

• Winner Masterplan Competition: K. Christiaanse (today ETH Zurich / KCAP), Draft and Final Version: HafenCity Hamburg GmbH / Ministry of Urban Development and Environment

• Masterplanner: KCAP / HafenCity Hamburg GmbH / Ministry of Urban Development and Environment

Functional Plan for each City Quarter

Urban Design Competitions (before the start of the development of an area; 10-12 participants)

Landscape Competitions (1 to 3 quarters; approx. 30 participants for each competition) Winners: • • • •

EMBT, Barcelona BBGG, Barcelona Vogt, Zurich Loidl, Berlin

Private competitions on site: •

III Mikro (Site Level)

Individual Buildings

Architectural Competitions

(100 to 150 buildings) private buildings: 4 to 12 participants depending on the size of the building

Diverse landscape architects

Infrastructure (Bridges) (joint architectural / engineering competitions)

public buildings: up to 100 participants No competition: for very few buildings (e.g. Elbphilharmonie)

Public Competitions

Private Competitions