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JESSICA 4 Cities How Cities Can Make the Most from Urban Development Funds

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JESSICA 4 Cities How Cities Can Make the Most from Urban Development Funds JESSICA 4 Cities How cities can make the most from Urban Development Funds AEDA Athens contribution August 2010 AEDA ATHENS CONTRIBUTION The following material is the contribution by AEDA Athens to the J4C project material for the preparation of the Final Report (developed by Regione Toscana). The present work has 3 parts. Part I: The answers to 3 basic questions about JESSICA and Athens/Greece Part II: A short description of the Double Regeneration Project in Athens Part III: A discussion document on JESSICA Applicability in Greece Part I 1) Why JESSICA is interesting for AEDA? JESSICA is very attractive to AEDA, for the following main reasons: 1) There are considerable projects, in many fields (energy, waste, rehabilitation etc.), that could be deployed in the greater Athens metropolitan area. 2) The high population congestion can lead to new ideas for urban regeneration plans, with regard to the city’s main infrastructure, parks, housing, commercial and athletic facilities. 3) Being the development arm of the #1 municipality in the country, AEDA can play a pivotal role and lead the rest of municipal areas into JESSICA workable projects, as well as to provide know-how and expertise. 4) During the last 20 years (before JESSICA’s inception of course), there have been developed, very successfully, a few regeneration projects in the city of Athens. These projects should be further integrated for better city functions by JESSICA projects. 5) The city of Athens has a considerable budget, a strong balance sheet with many assets, a lot of revenues and also a high credit rating. So, the potential to exploit JESSICA is significant for the city of Athens. 1 6) There are strong ties with the business community and the banking system. 7) Greater Athens is the area with the strongest economic activity in the country. 8) Athens also, employs the highest, year round, tourism industry. 2) What is the State of implementation of JESSICA at AEDA and our MA? JESSICA state of implementation in Greece 1) The Ministry of Economy has signed the memorandum for JESSICA with the E.I.B. and has pledged the amount of € 100 million, as an initial start for the holding fund. 2) The new government (elected Oct 2009) has vowed to intensify efforts to implement JESSICA the soonest. 3) The Regional Authority of Attica, being the managing authority at the regional level has already procured studies for recognizing, exploring and recommending “Jessicable” projects. 4) The Mayor of Athens has pledged JESSICA as the central finance instrument for the Association of Greek Municipalities, in order to implement future urban regeneration plans and pledged to initiate the Hellenic JESSICA Network. 5) There exists substantial legislation platform, as well as the finance and business support and expertise, in order to speed things up and make JESSICA a very attractive and workable tool. 6) The recent JESSICA congress in Athens (sponsored and organized by AEDA), has given it also a considerable advertisement boost, to many big municipalities around the country. 3) Main problems - criticism - considerations on JESSICA tool implementation? (this is the project output) 2 1) One of the most significant problems we came across during our discussions/explorations with mayors and municipal staff was the lack of start up funds in order to make viable studies/business plans, which on their part can determine the Jessicability and the viability of an idea or an undergoing project. A JESSICA Technical Assistance Programme therefore is needed for better coordinating investment opportunities at the level of Cities/Local Authorities. 2) Another potential problem is the low degree of cooperation and between the Public Administration (Ministries) and Local Authorities. This could be overcome by the use of the Hellenic JESSICA Network, an initiative announced by the Mayor of Athens on 23 April 2010. This network, could be used as an experience exchange platform to facilitate and promote a “template” of collaboration at various levels of decision making. Part II: The Double Regeneration Project PROJECT DESCRIPTION The DOUBLE REGENERATION PROJECT is an ambitious city planning project, which promotes the simultaneous regeneration of two areas in the Municipality of Athens (“double” regeneration): The Eleonas area and the Alexandras Avenue area (see picture 1). The project includes the relocation of the historic stadium of the city’s football team Panathinaikos from Alexandras Ave. to Votanikos. 3 Picture 1: Double Regeneration Eleonas - Votanikos Picture 2: The 5 municipalities of Eleonas. The Eleonas area (extending to about 9,000 km2) bears the same name since the ancient times (“olive plantation”). Eleonas is situated in a hub area, primarily due to its vicinity to the centre of Athens (3 km from Omonia square) but also to its vicinity to the port of Piraeus (6,5 km). It is intersected by major roads such as the National Road Athens - Lamia, the Athinon Avenue, the Iera Road, the Petros Ralli as well as by the National Railway. Furthermore, a metro station exists inside its boarders. 4 Eleonas falls within the boundaries of five Municipalities (see picture 2). One of them is the Municipality of Athens, which owns 2.100 km2 of the Eleonas area. Eleonas is a former and also current industrial area, almost deserted of the population, showing lack and unsuitability of basic urban structures and services, social segregation, environmental damage and aggravation of the conditions and quality of life of surrounding areas. Eleonas is an area, whose transformation has been pending for many years and its regeneration is crucial for the smooth development of the Attica basin, since to a large extent it connects western suburbs to the Athens center. Alexandras Avenue Alexandras avenue is one of the major avenues of the Athens Municipality, connecting its eastern districts with the centre. On the avenue, the historic Panathinaikos football stadium is built. The car traffic, noise and pollution caused by the stadium operation are incompatible with the presence of hospitals in the vicinity. In addition, the densely built area shows serious signs of deterioration in terms of building, housing and the environment, especially a serious lack of green. Urban Planning Regulation of Law 3481/2006 (Greek Official Gazette A'162-2/8/2006) modified the Greater Athens Master Plan and arranged two new metropolitan poles for recreation, sports, cultural and other supplementary operations in the Athens Municipal area (“Double Regeneration Law”). The modification is in accordance with the guidelines of the Greater Athens Master Plan and the Municipality of Athens General Urban Plan for the creation of metropolitan poles for recreation, large scale interventions for the upgrading of the city and urban green unification. In the selected new poles Eleonas and Alexandras Avenue the law specifies the following modifications. Votanikos, Eleonas 5 According to the Double Regeneration Law, a new unified area will be constructed enclosed within the streets of Orfeos, Agias Annis, Agiou Polikarpou and the Profitis Daniel stream (see picture 3) and will include: • Construction of a football stadium for the Panathinaikos football club with a capacity of 40,000 seats according to 4 star FIFA-UEFA standards, with athletic facilities; • Construction of an indoor basketball and volleyball court with a capacity of 8,000 seats; • A multifunctional municipal building; • A shopping and recreation center; • Creation of necessary overground and underground parking spaces; • Creation of public park areas of approximately 120,000 m2; • Infrastructure works backing up the project including widening of the surrounding streets, as well as reconfiguration of the course of the Profitis Daniel stream and creation of a riverside street, sewage works etc. Picture 3: Double Regeneration plan for Eleonas 6 Alexandras Avenue According to the Double Regeneration Law, the area is classified as a public park in which: • The existing field will be torn down; • A recreational park of approximately 17,000 m2 will be constructed; • An athletic museum-meeting hall of an area of 150 m2 as well as a recreation and dining area of 250 m2 will be constructed- i.e. a total structured surface of 400 m2; • A public, underground parking space will be constructed with a capacity of 700 places, for use by inhabitants, the nearby Metro station passengers, and visitors. For the Double Regeneration purposes the company Double Regeneration S.A. was established as a special purpose vehicle (SVP). Company shareholders are the Municipality of Athens and the National Bank of Greece. REALIZATION OF THE PROJECT Currently, the Double Regeneration procedures have come to a stop, due to legal complications following a Administrative High Court decision. In March 2010, the Ministry for Environment announced a new proposal for the Double Regeneration Project, which will lead to a new law, in accordance with the court’s decision. The proposal includes, for Eleonas, abolition of the municipal building, the basketball-volleyball court, reduction of the commercial uses inside the football field, reduction of floor-space-ratio of the shopping and recreation center from 1,6 to 1,2, reduction of building by 60%, i.e. by about 66,000 m2 and 30.000 m2 more green and open spaces than the amount provided by the old law. Part III: General Discussion about JESSICA applicability in Greece (the following document reflects the discussion the was originally developed by Dr. Nikos Triantafyllopoulos at the JESSICA 4 CITIES meeting in Athens on 22 April 2010 at the partners’meeting) 7 JESSICA is an innovative instrument for promoting and financing integrated projects as part of a wider strategy for sustainable urban development. The projects that can be financed using JESSICA must be included in an integrated plan for sustainable urban development. JESSICA changes the profitability and risk profile of the involved parties in an urban regeneration project, minimizing financial obstacles resulting from the low IRR, high risk level and usually, and insufficient public financing.
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