The Future Lies on Brownfields

The Future lies on Brownfields

Reactivation of Urban Land Reserves - Redevelopment Potentials and Practical

Information for Investors, Builder-Owner and Real Estate Owners Imprint

Title: The Future lies on Brownfields Publisher: Federal Environmental Agency, PO Box 1406, 06813 Dessau Editorial: Achim Kälberer supported by Sarah Fee Klever and Thomas Lepke Translation from: German Edition: Die Zukunft liegt auf Brachflächen Jan Votoček supported by allround gmbh Layout: Sabine Rücker, Achim Kälberer Print: AZ Druck und Datentechnik GmbH, Kempten (Allgäu) Press date: January/July 2005

Front cover image: Channel Hamburg: New technology location at the old inland port Harburg (originalphoto: © Hans-Hennig Gerhard)

Funded by the Federal Ministry of Education and Research.

Content

Foreword ...... 5 1 - Motivation:...... 6 Good Reasons for Brownfields redevelopment ...... 6 How Profitable is Brownfields redevelopment for Investors? ...... 7 2 – General Conditions: New Emphasis in Politics and Administration...... 9 Laws and Ordinances ...... 9 Objectives ...... 9 Support Programs ...... 10 Registration of Land Potentials ...... 10 Further Activities...... 10 Initiatives for Future Steps ...... 11 Research Activities...... 11 3 – Market Chances: Chancen in the Real Estate Industry...... 12 Urban Life is becoming Chic ...... 12 Commercial Sites with the Certain Something ...... 13 4 – Project Examples: Success despite Handicaps - Handling Risks and Disadvantages ....14 Location Development through Cooperation ...... 15 Example: Channel Hamburg Nucleus for new Settlements in the City...... 15 Start-Up Investments ...... 15 Follow-Up Investments ...... 16 Communicative Planning Process...... 16 Example: Weststadt Essen New Inner-City Quarter thanks to Combined Forces ...... 17 Public-Private Partnership...... 17 Intense Cooperation ...... 17 Successful Mix ...... 18 Solutions for contamination & Co...... 19 Example: Industrial Park Hoechst Chancen and Risk Contractually Controlled...... 19 Clear Redevelopment Obligations ...... 19 Clear Redevelopment Rights ...... 19 Example: Wasserstadt Povel, Nordhorn Flexible Strategies for Unknown Risks ...... 20 Efficient Redevelopment ...... 20 Efficient Marketing ...... 20 New Demand through new Ideas ...... 21 Example: Townhouse Project Dresden Garden in the Front, Pub Row in the Back ...... 21 Example: Airfield Pferdsfeld "The Idea is Decisive..." ...... 23 "…the Rest is Hands-on Work" ...... 23 Image Revival through Temporary Use...... 24

Federal Environmental Agency – The Future lies on Brownfields Page 3 Content

Example: Backfabrik Berlin...... 24 Temporary Use as Catalyst ...... 24 Example: Rosensteinviertel Stuttgart Temporary Playground ...... 25 Lots of Fun for Little Money ...... 25 Additional Project Examples...... 26 The Essential Success Factors ...... 26 5 – Methods and Instruments: Overcoming Revitalization Obstacles ...... 27 Ovcerview of the Essential Aspects ...... 27 Check Lists for Brownfield redevelopment Projects ...... 27 Projekt-koordination und Organisation...... 27 Public-Private Partnership – Tips on Team Organization ...... 27 Phase Concept – More Flexibility throughStep-by-step Realization...... 28 Support Programs for Brownfield redevelopment ...... 29 Handling Contamination ...... 30 Instruments for the Assessment of Contamination Risks ...... 31 Dealing with Building Stock and Monument Protection ...... 31 Costs and Benefits of Constructional Building Examinations...... 32 Costs for the Reredevelopment of Buildings ...... 32 Tax Hints for Monument Owners ...... 32 Demand-Conform Planning and Marketing ...... 33 Redevelopment Supplements ...... 33 Modern Planning Instruments ...... 33 Temporary and Anchor Uses ...... 33 Overview of Additional Instruments...... 34 Development Work Aids...... 35 6 – Information Sources: Web Links and Literature ...... 36

Page 4 Federal Environmental Agency – The Future lies on Brownfields Foreword

Foreword

Living in houses constructed on greenfields If you want to build, you need There are various definitions of outside of cities: more and more city, less land. It has always been like brownfields, but there is no and less landscape. this. But the loss of open land official one. However, the (photo: © Kälberer) definitions always describe outside of human settlements in land that was previously used. Germany has never been so Such previously used brown- massive as in the last 50 years – fields which are to be redevel- more than in any other Euro- oped for ecological reasons, urban development or social pean country. reasons but whose redevelop- While fertile land has to make way for ment potentials are hampered new buildings, more and more brown- by conditions typical for fields in the cities and communities brownfields, are the object of remain unused. Land use and overde- this brochure. Such hindrance Vacancies in the inner cities velopment are one the most pressing could be for example a sus- (photo: © Kälberer) environmental problems at present. pected contamination because Other consequences are higher costs of previous commercial, indus- for the community and a loss of urban trial or military use. Brown- quality of living. fields may therefore be for many years used only partly or Reducing land use is not only a central lie entirely fallow. political aim of the federal government but also a part of the agenda of a grow- Brownfields redevelopment ing number of federal states and com- means restoring the usability munities. The reactivation of land re- of brownfield sites. The state- serves in the inner cities plays a key ments in this brochure also ap- role in this process. Growing interest of ply to the reconditioning of real estate users to work and live land with previous military within urban locations also gives rise to use, which is usually called hope. Meanwhile, numerous inner city conversion. quarters have been reporting population growths again and the number of residents in many rural areas has been declining. Urban brownfields meanwhile appear in a new light: as a chance of making the quarters more interesting, worth living and also more attractive for new redevelopment concepts. Inner city locations are more sustainable for construction projects than projects on rural land not only in terms of demographic trends. The reactivation of these brownfields is not only facilitated by overall improvement of conditions but also by increasing know-how to overcome development hindrances available. Newly developed site in the south of Trier (photo: © Hüllenkrämer) This brochure informs investors, builders and real estate owners about the potentials of brownfields. On project examples it also introduces methods and instruments, which may be helpful for “land recycling”, as is in broader terms brownfield redevelopment some- times called.

Federal Environmental Agency – The Future lies on Brownfields Page 5 1 Motivation

1 - Motivation: Good Reasons for Brownfields redevelopment

There are many reasons for the brownfield redevelopment and thus reducing further land occupation. New construction projects on The land sealing caused by urban construction and traffic is currently around 100 rural land are at the expense hectares per day, which corresponds to the area of Cologne on an annual basis. This is of valuable natural resources. not due to increases in the population but due to higher area occupation per person: The land which was previously In 1950, each resident occupied 15 m² of living space, nowadays this number has in- mainly used for agricultural creased to 40m². Another reason is that single and semi-detached houses have been purposes is actually the basis constructed outside of cities in an increasing number, which requires not only more for cultivation of food and re- space per person but also an additional facilities like roads, nurseries and schools. In plenishable resources, supply this way, one loosely scattered single-family home estate requires two to three times of clean potable water, equi- more space than a densely constructed residential area. The infrastructure costs are librium of the climate and pro- up to three times higher as well.* tection from flooding. Preserv- Despite this high land occupation, the amount of brownfields has been still increasing natural landscapes is im- ing: Only from the end of 1997 until the end of 2000, in the cities and communities portant for plants and animals the amount grew at approximately ten hectares per day from 128,000 to 139,000 hec- and for recreation and tourism tares. This area would span over a half of the Saarland. In terms of construction, this as well. area would satisfy the demand for commercial land for more than ten years ahead. The revitalisation of brownfields contributes to sustainable urban development. It can make cities more valuable worth for citizens and workers and more attractive for companies to settle down. It can also contribute to a development of a "city of short routes" and reduce traffic volumes. And it can help to reduce additional expenditures for the construction of nurseries, schools, parks and traffic ar- The urban space increased by almost 80 percent in the western states of Germany eas, it avoids construction of from 1961 until 2001. On the contrary the number of inhabitants grew by only around supply lines in external areas. 20 percent. The better we utilize available facilities the lower the finan- Source: Federal Office of Construction and Regional Planning (data partially interpolated, with- cial expenses of communities out correction of changed survey frames) will be. *: Ecological, economic and social consequences of land occupation: http://www.umwelt.schleswig-holstein.de/servlet/is/39407/vortrag_stefan_siedentop.pdf For the owners themselves, unused land, i. e. brownfields mean unused capital. At the same time, these brownfields incur costs, whether for maintenance and traffic safety, in the near future. The companies at They have been lobbying for corre- connection charges, land tax the stock exchange gain from the acti- sponding political steps, especially for and insurance payments or the vation of silent reserves too. It brings financial support and different taxa- obligation to prevent hazards. advantages in the IAS/IFRS balancing, tion. Therefore a fast profitable and which has been applied since the be- safe redevelopment is also in ginning of 20052. Examples of such bodies are the the interest of the owners. "Deutscher Städtetag" which advocates Companies which redevelop Not only environmental and nature pro- sustainable urban development4, the their brownfield real estate tection agencies like NABU3 have been "Deutscher Mieterbund", which ex- property can also profit from engaged in the reduction of land seal- pects more direct housing construction an improvement of the coming and the redevelopment of brown- support and the "Deutsche Kredit- pany’s balance sheet. This is fields. Other groups have been oppos- bank", which takes a stand in preven- also advantageous for the ing new developments and strongly tion of misdirected resources. Basel II company rating1, which promoting the brownfield redevelop- will come into force for loans ment in the inner cities as well.

Page 6 Federal Environmental Agency – The Future lies on Brownfields 1 Motivation

Brownfield Redevelopment: Profitable for Investors?

Compared to rural locations, brownfields in urban regions have typical advantages and chances but also disadvantages and risks.

Typical advantages of brownfields: • Typical disadvantages and risks: • Better site quality (centrality, pub- • Higher costs and delays, due an to lic transport, urban environment, inefficient organization and insuffi- closer location to business partners) cient cooperation between the players involved • Stable increasing value or of the property, especially in regions with • Risks, e.g. contamination and its a declining population handling • Less risk of vacancy due to a broad • Costly or restrictive regulations, utilization spectrum, especially e.g. monument protection for exist- when mixed use applied ing buildings • Lower construction cost thanks to • Contra-productive support struc- available infrastructure, and lower tures favouring further land sealing allocated costs because of the utili- of greenfields zation of public infrastructure • Marketing troubles caused by • Savings on ecological compensation “brownfield” image measures Quickly marketed: objects at Rummelsburger Bucht, Berlin (pho- • Financial incentives and support to: © Kälberer) programs

• Marketing advantage and longer life cycle of buildings with special flair • Possibility of promotional tempo- The following chapters will portray the rary use respective influencing factors in detail.

Federal Environmental Agency – The Future lies on Brownfields Page 7 1 Motivation

The profitability of brownfield redevelopment projects, meaning the relation between the costs of the construction development for a brownfield and the profit achieved, varies greatly from a location to location. An economic potential of brownfields be- comes evident on an "ABC model":

A survey of the Federal Office of the State Building Societies (LBS) provides an indication of the profitability of realized brownfield redevelopment pro- jects5. 57 communities in urban areas provided information about the brownfields redeveloped to residential construction land:

60 percent of the projects were profitable. In 22 percents of cases the planning and development costs were

Source: Cabernet higher than the land value increase, but not higher than the corresponding

costs on rural land would have been. The costs were higher in 18 percent of the cases only.

This shows that brownfield redevelop- In general we can distinguish Type B: “Potential development ment projects were realized economi- between three types of brown- sites” cally and in most cases even without fields: are on such locations where the profit- support funds. The costs were lower to ability is not secure due to risks. Cer- alternative rural sites. Type A "Self developing tain approaches and assistance are sites": are such locations generally required to reduce risks, dis- where the expected profit of a tribute costs and sped up the process in This brochure concentrates above all brownfield redevelopment is these cases. Cooperative relations be- on the redevelopment of “B” type pronouncedly higher than the tween private investors and public in- brownfields, meaning the brownfields expected costs for the prepa- stitutions are highly recommended where the investment decision is "on ration and construction (e.g. here, e.g. Public-Private Partnerships. the brink" and which are interesting objects in good locations in These “B” type brownfields are the only under certain conditions. Methods prosperous regions). These main focus of this brochure. and instruments presented in this bro- brownfields are attractive for chure shall investors introduced addi- private investors and run even Type C: “Reserve sites” are such loca- tional ways to carry out projects on without additional assistance tions where the expected income from such "problematic brownfields" success- (e.g. support funds) and there- the redevelopment is substantially be- fully to builder-owners and real estate fore do not lie fallow for long. low the expected costs for this rede- owners. It is especially important as velopment and construction (e.g. in the real estate market is becoming in- case of a large excess of real estate creasingly affected by demographic offers). These brownfields can only be shrinking in many regions. developed with substantial public sub- sidies.

Page 8 Federal Environmental Agency – The Future lies on Brownfields 2 General Conditions

2 – General Conditions: New Emphasis in Politics and Administration

Improving brownfield redevelopment (utilizing urban land reserves) is increasing on the political agenda of the federal government, the states and the communities. More and more players are becoming aware of the advantages of brownfields redevelopment for environment, society and economy. In the recent years numerous measures have lead to an improvement of general conditions for brownfields’ redevelopment to greenfields’ sealing.

Political objectives, statutory regula- or sealing further land. The obligation tions, support programs, pilot pro- to compensate new land sealing jects, planning directives, incentives measures and different environmental and work on public relation are among protection measures are supposed to the essential policies applied to pro- reduce land occupation. German Con- mote brownfield redevelopment. Pro- struction Code, lastly amended in July grams and funds for brownfields po- 2004, enables an application of new tentials’ databases, land management planning instruments which make improving and better inter-communal brownfields’ redevelopment easier. cooperating are other important instruments. The Federal Land Protection Law, also adopted in 1998 and the Federal Land Protection and Residual Con- tamination Ordinance from 1999 im- Laws and Ordinances prove legal certainty for brownfields with residual contamination and enable more cost-efficient and ecologi- Overturning the trends in land sealing cally more effective measures to de- tect and clean up the contamination. was already on the agenda of the federal government in the Land Protec- "Methods and Instruments" in the chap- Redevelopment at an appropriate extent: tion Concept from the year 1985. ter 5 describe the most important pos- soil air extraction test in a public park Supported by the "land protection sibilities given by the new regulations (photo: © Kälberer) measures" approved by the federal for brownfields redevelopment pro- cabinet in 1987 the land protection jects. became one of the most important in- For example, according to the terdisciplinary and interdepartmental quantitative framework of the tasks of the environmental policy for Objectives regional urban plan of the following years. There have Schleswig-Holstein, the site de- started the intentions to amend laws, signed for new housing construc- ordinances and administrative regula- The aim of the federal government to tion outside of residential sites tions, work out technical guidelines, may not grow by more than 20 expand information databases and ini- protect open spaces, to control the urban development on the boundary of percent in 15 years. In the state tiate and support numerous research of Hesse, the regional planners and development projects. urban and rural land and to make urban development more attractive and give quantitative objectives for Some of these intentions have been environmentally friendly was specified each community. Maximum ur- implemented in the meantime: A de- in the National Sustainability Strategy ban land requirement is defined mand for gentle handling of land re- in 2002: The goal is to reduce land and may be exceeded only in sources was incorporated into the occupation to 30 hectares per day exceptional cases. In order to German Construction Code in 1998 until 20206. control locating of new projects, (land protection clause). One clause specific sites for residential set- prescribes that communities have to Meanwhile, some federal states have tlements, commercial and in- carefully check each construction plan issued precise guidelines to limit fur- dustrial facilities were exactly claiming new land reducing open ther land sealing for construction. defined in construction control spaces planning.

Federal Environmental Agency – The Future lies on Brownfields Page 9 2 General Conditions

Support Programs Further Activities

Programs support revitalization of Image campaigns advertise living and brownfields directly or indirectly. They working in the city. Worth mentioning are provided especially by the Euro- are the information brochures about

pean Union, and than by the federal construction in the city10 in the state of government and the federal states. In- Brandenburg or the public relation ac- centives and programs have been tivities of the inner city initiative "Ab more and more contributing to the in die Mitte!" [Let's Move to the Cen- “inner development than outer de- tre!] in several federal states. velopment”. Therefore many federal states are exclusively concentrating on Regional Cooperations for brownfields regeneration are supposed to provide the urban development support (e.g. Brandenburg) or especially on the inner investors with higher investment safety cities and brownfields (e.g. Thuringia). through coordinated economic development. "Regional pool of commercial Support programs: better perspec- Financial engagement of the communi- tives for old buildings ( © Kälberer) ties is also increasingly directed to- sites" created by 22 communities in the Zollernalb district11 or “potential inves- wards brownfield revitalization. Last tigations and test planning" by commu- but not least, the changed house 12 Many cities and communities owner's allocation has improved the nities in Murgtal (Baden) are among have been striving to reacti- competitiveness of brownfields. Pur- successful cases. vate their land reserves for chases and the refurbishments of build- New brownfield regeneration concepts some time. According to a sur- ings located on brownfields receive are tested on pilot projects. One ex- vey by the German Institute for funding in the same extent as new con- ample is the initiative " Genial Zentral – Urbanism [Deutsches Institut struction located on greenfields. Fun- Unser Haus in der Stadt" [Perfectly für Urbanistik (difu)] in the damental support programs for brown- Central – Our House in the City] by the summer of 2000, almost 90 field redevelopment are introduced in state of Thuringia, which supports 15 percent of the 149 interviewed the chapter 5 "Methods and Instru- communities in the development of an cities rated the revitalisation ments". individual and affordable living space of brownfields as one of the on brownfields in inner cities13. most urgent urban development policy task. About one Brownfield’s Potential Work tools facilitate the implementa- third of the communities had tion of the political aim to increase already approved a political Registration brownfields redevelopment. One ex- resolution concerning this or ample is the Bavarian tool "Kom- was in the process of preparing munales Flächenressourcen- 7 one . More and more communi- More and more communities are ob- Management" [Communal land Man- 14 ties have developed strategies taining an overview of their brown- agement] . for handling brownfields in fields. Already in 2000, 70% of all 149 the whole city. These strate- interviewed cities centrally registered gies are appearing in the re- type, size and special characteristics of gions with high demand of land their brownfields or were in the proc- as well as in the regions af- ess of preparing such a registration sys- fected by structural changes tem 7. Special "brownfield registers" and declines in population. For are increasingly put into use and up- example, the new mission dated on regular basis. They facilitate statement " Metropolis Ham- better management and marketing of burg – A Growing City " [Metro- these sites. For Example: "Site certifi- pole Hamburg - Wachsende cates / passports" were established Stadt] considers projects for under "Sustainable Construction Land brownfield redevelopment as a Management Stuttgart“8 and a register central tool in bringing in com- for sites available for residential con- panies, attracting residents struction was set up in the city of Dres- and stopping everybody from den9. relocating to rural lands. In the city of Stuttgart, which is known for a large demand for real estate properties, the regeneration of brownfields should contribute to the reduction of land sealing down to 5 hectares per year in 2020.

Page 10 Federal Environmental Agency – The Future lies on Brownfields 2 General Conditions

Initiatives for Future Steps Research Activities

Despite all these initiatives and meas- Number of research projects dealt and ures, there is still a lot to be done in are dealing with improving of condi- order to improve the overall conditions tions for brownfield redevelopment. for redevelopment projects. The fed- They are delivering more efficient pro- eral government and a working group cedures for revitalization projects. "Verminderung der Flächeninanspruch- These include, among others: nahme" [Reduction of Land Occupa- • collecting and updating information tion], which is representing several 18 federal ministries, are working on a about brownfield inventories , collective catalogue of measures. The • balancing costs and benefits of revi- goals are a land use report’s improve- talization measures for investors, ment and also a designing of legal, communities, society and environ- planning and financial instruments. Po- ment 19, litical strategies and measures dis- cussed in this process are not a part of • evaluating practical experiences this information brochure. The essen- gained in Germany and in other tial elements are summarized in strat- European countries and the USA20, egy papers of the Federal Environ- developing work tools for investors mental Office15 16 and of the Sustain- • and authorities ability Council17. The regeneration potentials of vacant • providing politics and administra- sites and empty buildings are also in- tion with recommendations vestigated in the program "urban conversion" of the Federal Ministry of Transport, Construction and Housing for, which serves to tackle the problems caused by declines in population and housing vacancy. Federal states are also working on suitable strategies, examples are the "Bündnis für Flächensparen" [Alliance for Land Saving] in the state of Bavaria and the inter-ministerial workgroup "Reduzierung der Flächeninanspruch- nahme" [Reducing Land Occupation] in the state of Baden-Wuerttemberg.

An empty hall waiting for new life (photo: © Kälberer)

Federal Environmental Agency – The Future lies on Brownfields Page 11 3 Market Chances

3 – Market Chances: Chances in the Real Estate

Economic potentials of brownfields are usually higher than expected. Especially in the urban environments it is being proved by the real estate market demand as we explain bellow.

Urban Life is be- Typical attributes of successfully As surveys have shown, there are many coming Chic revitalized quarters: different explanations for this change: • Location (especially close to the • Quality: Enhanced offer of urban inner city) housing. Deeper satisfaction with Desire for more space, more housing is reported especially from light, a lot of fresh air and • Close proximity to green spaces and the east German cities23 24. open nature has tempted many parks inner city residents to leave • Costs: Former decline in residents • Old building atmosphere, flair, his- made the residential offers in the their urban quarters and relo- torical ambience cate to single-family houses city affordable, which was a deci- outside of cities. None the • Image (among others, popular dis- sive criterion for many prospective less, a new development has trict, environment, etc.) tenants. been emerging since around Proximity to workplaces or educa- • Growing interest in living in an ur- 1997 and is bringing new • tional facilities (universities etc.) ban environment: According to a chances for brownfields in the survey by ICON commissioned by city. Contrary to the previous • Friends close by the state Savings Societies, two out trend, the population in many of three Germans prefer living in Infrastructure (schools, nurseries, cities is increasing again. This • the city – 13 percent in the inner shops, doctors offices, transport change is especially rising in city, 53 percent in the suburbs. connections) the east of Germany, where Only roughly one third prefers a ru- some old city quarters close to 25 • Pubs, cultural and catering facilities ral environment. the inner city once again show nearby significant population increases • More interest in redeveloped old – up to around 40 percent since • Living quality, quietness buildings: According to a survey by 1997. Any general change in Emnid commissioned by the finan- trends featuring "back to the cial corporation BHW, each second city " tendencies however can- person in the west German states not be reported. Much rather Many previously unattractive and "prob- between 20 and 40 would like to the increases concentrate on lematic" quarters were profoundly purchase and modernize some nice city quarters that have been changed through the redevelopment old building. In the east Germany, redeveloped in recent years, and quarter management. For exam- 43 percent would like an "used" while other districts with less ple, an old district of Plagwitz in Leip- house mainly in the cities. advantageous conditions con- zig, which used to be known rather for 21 22 Demographic change: Younger ten- tinue to lose residents . old industry and housing projects for • workers, has gained 20% in population ants (partially in flat-sharing com- since 199721. If the revitalization of munities) are replacing old tenants. brownfields delivers what was previ-

ously missing in the quarters it can play • Additional factors: For example, a decisive role in the whole matter. better offers for working and edu- Shell it be senior homes, apartments cation in conglomerate areas, the suited for families, special shops, cul- depletion of rural land or improved tural facilities, catering facilities, pub- environmental quality in the city. lic facilities or playgrounds and parks or the missing "green" in the city.

Page 12 Federal Environmental Agency – The Future lies on Brownfields 3 Market Chances

Technology-oriented compa- Commercial Sites with nies, production companies Something Special based on intelligence and service providers employing many experts prefer central locations not only because of Even though numerous commercial better networking possibilities companies relocated on the land sur- and easier business contacts rounding the city, the brownfields in but also because of the fact the inner-city can still be interesting that highly qualified labour for commercial redevelopment. They force prefers urban locations especially stand up against rural sites with a high quality standard of when the advantage of their typical living. attributes is taken: Network and district compa- • Central location in an urban envi- nies profiting from a certain ronment, Many Germans are interested in real customer base or a group sup- pliers in the surroundings pre- estates typical for brownfields. Accord- • good transport connections – also fer central or historical loca- ing to a survey by the magazine Stern with public transport, and the Building Society Schwäbisch tions too. strikingly positive image if clever Hall, each 4th person could easily • Other examples of service pro- revitalization management applied. imagine living in a city quarter that viders and commercial compa- would be created through the redevel- nies which have located on re- opment of an empty construction site vitalized brownfields are de- Precisely these location factors were between two houses, old building quar- scribed in the next chapter. identified as the decisive deficits in an ter or former barrack or factory. analysis of commercial sites in North Even in a much more demanding target Rhine-Westphalia which were hard to Shopping centres and local group of young families, by far not eve- sell 31. ryone dreams about their "own house in supply facilities are once the country". Surveys in different cities Sites previously used for commercial again rising in city centres or have shown that the reason for decid- purposes have other advantages too, in densely populated city dis- ing to relocate outside of the city is e.g. uncomplicated permit approval tricts. The background is not rarely a general dislike of living in the procedures when the site is used for a only a growing interest of local inner city. Lack of sufficiently large similar type of commercial purpose or a politicians to revitalize the in- apartments at affordable prices, unsat- presence of usable infrastructure. ner cities but also more restrictive approval practices vis- isfactory social environment or the The importance of urban location has wish for a better environmental quality à-vis for settlements on the been increasing lately – which applies rural land. This brings satisfac- and free space are the strongest deci- to brownfields as well. sive factors for the migration to the tion to the customers who pre- rural land26 27 28. The aspects of "envi- Typical commercial users of urban fer short routes and want to ronment" and "social environment" can brownfields: run their errands on foot or by bicycle. play an important role, especially in Historical buildings on brownfields can the areas touched the by structural serve for a good representation of high changes – i.e. especially the areas with quality standards and distinct corpo- many industrial brownfields where im- rate identity. The companies can provements of the environment bring profit from valuable location in an ur- significant effects. ban environment and remarkable archi- With an appropriately addressed pro- tecture. gram new target groups for real estate projects can be reached, for example senior citizens. Around a half of the people of 50 years of age or more will move at least one more time29. In order to enable living of different genera- tions in the same quarter, the construction on brownfields can supplement the housing offer with apartments of various sizes and thus meet different space requirements of senior citizens and families. 30

The cotton spinning mill, a popular address in Leipzig (photo: © Kälberer)

Federal Environmental Agency – The Future lies on Brownfields Page 13 4 Project Examples

4 – Project Examples: Success despite Handicaps - Handling Risks and Disadvantages

We portrayed overall conditions for brownfield

redevelopment in the previous chapters, the influence of politics and administration as well as the real estate context of

brownfields. However investors and/or builder- This chapter highlights successful The profitability turns out to be the owners can substantially methods for typical brownfield rede- decisive factor in all investigated pro- influence the success or velopment projects’ problems han- jects. Quality of the project organiza- dling. As the evaluations of previous tion and the cooperation between the failure of brownfield re- projects have shown, it especially con- participants (e.g. investors, real estate development projects cerns the following aspects: 7 32 33 34 owners and authorities) were of a spe- themselves - by their cial importance as well. Although the own approach. development of the real estate (e.g. • Performance of brownfield rede- the removal of contamination) lead to velopment projects: Problems with varying degrees of cost increases and cooperation of numerous project delays it was not the decisive factor in participants and costs and risks any of the projects. However a degree typical for brownfields (e.g. con- of uncertainty in terms of economic tamination), and legal risks can significantly con- • planning and marketing: Low de- tribute to the decision not to enter the mand and bad image of brown- redevelopment project. fields. On the following pages, we will present These influencing factors may lead to eight case studies where the hin- higher costs and delays in the project. drances typical for brownfields were overcome through special approaches. We especially selected projects that were no "self developing projects" but still concluded successfully. The first two examples (Hamburg, Es- sen) focus mainly on the project planning, organization and coordination. The next two (Nordhorn, Hoechst) deal with contamination. Two other projects (Dresden, Pferdsfeld) present approaches for activating new users, and the last two examples (Berlin, Stutt- gart) show the possibility of profiting from temporary use in transition phases.

Backfabrik Berlin (photo © Kälberer)

Page 14 Federal Environmental Agency – The Future lies on Brownfields 4 Project Examples

Location Development through Cooperation

The quality of the project organisation and the cooperation between the project participants – e.g. builder-owner, property owner, involved planners and authorities as well as between the administrative units – are among the most important success factors of any revitalization project. In the following, we will present projects, which turned out to be especially successful in this respect: Channel Hamburg and Weststadt Essen. A lively office and service location was created in Hamburg in just a few years thanks to a consensus-oriented planning process, and in Essen, the planning and approval processes were facilitated through a public-private partnership.

Example: Channel Hamburg

Nucleus for New Settlements in the City

When Arne Weber, head of the construction company H. C. Ha- gemann, purchased three hectares of land at the Harburg inner harbour in 1990, this industrial area 10 km south of Ham- burg's inner city was an unknown territory for the most Channel Hamburg: From the soap to the think factory (photo: © Günter Sommerfeld) people in Hamburg. It has changed in the meantime. We- ber's site and its surroundings have meanwhile turned into a well known and rapidly growing industrial location. The development project received several awards, among others the DIFA Start-Up Investments The goal of the city was to de- Award 2002 of Deutscher Immo- velop new structures in the bilien Fonds AG in the category The first Weber's project was the con- area of the harbour while at version of a shut-down soap factory the same time largely sustain- "Quarters under Construction". into an office building for Deutsche ing the activities in inner har- Telekom. He had realized a special po- bour and its peculiar flair. Af- tential of the location shortly before fordable land prices and very the city of Hamburg constructed the good transport connections MAZ Microelectronics Application Cen- were additional advantages of tre to attract new high-tech companies the locality. to the neighbourhood of the Technical Weber used these prerequisites University Hamburg-Harburg. to create a real estate offer in the atmosphere of the old harbour that wins over common office or commercial locations by combining technology, sci- ence, catering and culture companies in close location.

Federal Environmental Agency – The Future lies on Brownfields Page 15 4 Project Examples

Follow-Up Approx. 70,000 m² of new space were Communicative Planning created at the Harburg harbour and Investments more than 80 new companies with over Process 4,000 employees have settled here. Other settlements followed New technology companies profiting Successful settlement of new users de- soon: In 1994, the city of Ham- from the proximity to TU Harburg and spite the immediate proximity to the burg constructed a new build- global players like Deutsche Telekom harbour in operation can be attributed ing for the MAZ, whose futuris- with its subsidiaries T-Mobile, Siemens to the participative planning and de- tic architecture was to set new and Heinrich-Bauer-Verlag are among velopment process, in which investors, accents. A year later, Weber these. Two companies relocated from owners, industry associations, cham- converted a former "Palmspei- Hamburg's "City South" to the old har- bers and residents were involved. The cher" into an office building bour: the international certification Federal Ministry of Construction spon- with a restaurant and event and classification company Bureau sored an extensive project of the city rooms. Further, he situated Veritas now resides at Kaispeicher in of Hamburg: an "experimental housing 35 modern office buildings in be- Harburg, and the German headquarter and urban construction project" . This tween the old port buildings. of the pharmaceutical company Lund- development was last but not least The "Channel I" building, con- beck moved into the "channel tower". promoted by general involvement of structed in 1998 and awarded For both companies, the surroundings the city of Hamburg, who created a by the architects and engineer of the harbour were the decisive crite- new space for industrial settlements in association Hamburg, was rion. Although the old location had the inner city by redeveloping brown- "cloned" in the shape of three comparable rental fees, there were no fields. One of the first key points of other buildings with the same shops or catering facilities. In the port this development is the Harburg inner appearance along the dock. area, the employees and their guest harbour. This resulted in low construc- can now chose between numerous of- tion costs of 1,100 Euro per fers, whether the panorama restaurant, square meter on the storeys the historical inn, the street café or Notable development obstacles: and an office rents of 12 Euro. aboard a museum ship. In some time ten newly con- • Unknown location, 'isolated from the surroundings' structed or converted buildings rose in the area commonly • Bad image of the quarter called as "Channel Hamburg". One of them is the "channel • High demands on the mixed use: tower", constructed in 2002, research and services adjacent to which dominates the new Har- an operating harbour burg skyline with its 75 meter • Historical buildings, partially under height. More than 90% of We- monument protection ber's real estate’s offers has been already sold. Fast growth • Oversupply of offices in the real es- in the old harbour enjoys great tate market resonance in the media and on Hamburg’s political scene. Special success factors: This area near the harbour • Engagement of the first investor which spans approximately • Continuity of the project managers over 100 hectares meanwhile attracted further investors who • Communicative planning process have started constructing additional architectural landmarks. • Community and private key projects 'The Silo', for example is a 14- • Joint marketing, "brand name" story office building, in which Channel Hamburg the office floors were inte- grated into a former grain silo. Achievements of the investor: Another combination of archi- • 90 percent occupation (Hagemann tecture under monument pro- objects) tection and a modern glass fa- cade was realized on the silo Meeting point Café Madrid: soft location criterion for hardware experts • Improved image and key projects complex 'Kaispeicher Harburg'. (photo: © Channel Hamburg e.V.) promoting further development

Page 16 Federal Environmental Agency – The Future lies on Brownfields 4 Project Examples

Example: Weststadt Essen

New Inner-City Quarter from Combined Forces

The steel industry and coal min- ing were determinating the appearance of the city of Essen for a long time. Meanwhile the image has changed: many factories Intense and mines were closed down, Public-Private Partnership Cooperation new industry sectors have grown. The goals of the urban As a result of the interdisciplinary and LEG's task was the develop- planning in the city at Ruhr consensus-oriented discussion process, ment and marketing the prop- have also changed. Instead of a new quarter with commercial and erty as well as its financing. It large-space monostructures and residential sites, retail trade, services, was also involved in the con- cultural facilities, catering and green version of the factory hall un- the separation of living and spaces was to be constructed on the der monument protection into working districts, the mix of industrial site. The city of Essen pur- the musical theatre "Co- uses is being designated increas- chased the land in 1988 and would not losseum". In turn, the city of ingly. A large factory on 11 hec- have been able to cope with the large Essen took care of the planning tares gave a special chance for efforts of the conversion alone. The and permit prerequisites. It overall task would have not been also non bureaucratically ac- this aim. It was the site of the enough interesting for a private inves- companied the construction of former turbine factory AEG tor from an economic point of view ei- the development facilities and Kanis on the western outskirts ther. The solution came in a public- took them over after the com- of the inner city in Essen. private partnership of the city of Essen pletion. Pursuant to a coopera- with the communal Essener tion agreement with LEG, EWG Wirtschaftsförderungsgesellschaft mbH coordinated the negotiations (EWG) and privately acting Lande- with the town administration,

sentwicklungsgesellschaft NRW GmbH which speeded up the process, (LEG), who purchased the property in and supported the marketing 1994. activities by acting as contact partner for the clients. The LEG project team, which included a member of EWG, had an essential influence on the content and the success of the project. An early coordination of construction projects between investors, LEG, EWG and the planning and the construction administration of the city of Essen was just as important.

Musical theater Colosseum: key project in the marketing of the western Essen city (photo: © Stage Holding)

Federal Environmental Agency – The Future lies on Brownfields Page 17 4 Project Examples

Successful Mix

The project organization and Special development obstacles: Special success factors: an intense marketing for the new quarter were well worth • Bad economy • PPP with close cooperation between the effort: the first contracts the partners for construction projects were • Deficiencies in urban planning signed even before the termi- • On-site project management with • Bad connection to the centre nation of the construction representatives of both partners au- planning. Today, around ten • High demands on the Mixed use in- thorized to make decisions years after the start, the reali- cluding cultural facilities and green • Personal engagement zation of this city quarter is space almost completed. All brown- • Personnel continuity fields are sold, approx. 80 per- • Old buildings under monument pro- cent of the construction sites tection • Consensus-oriented and flexible planning process are built up. Investments of Achievements of the investor: approx. 18 million Euro for • Marketing through the key project construction development • Realized objects completely util- (musical theatre) funded by the regional industry ized, high rental yields support program of the state • Image of 'lively district of West- • Further development facilitated by of NRW triggered the construc- stadt' the key projects tion investments reaching several hundred million Euro. A musical theatre, erected for around 30 million Euro, developed into an attraction that is well famous beyond the re- gion. It was a key project for the marketing. Two large fur- niture stores, which are usually located outside of the city, have also settled here. Almost 2,000 people will have been employed here in Weststadt when the last tenants move into the buildings which are still under construction – twice as many as in the last industrial use of the property. The real estate market responds to the mixed use positively: all apartments were fully used just after a few months and yield very high rental profits. Essener Weststadt is mentioned as a "good example" in the " Mixed Use" program of the experimental housing and urban construction department of the Federal Ministry of Housing and Urban Construc- tion (ExWoSt)36.

Construction monument Colosseum: a large stage for culture in the district (photo: © Stage Hold- ing)

Page 18 Federal Environmental Agency – The Future lies on Brownfields 4 Project Examples

Solutions for Contamination & Co.

Unknown risk is a classic 'stigma' of brownfields. Especially the uncertainty in terms of contamination scares many investors off. Underground pipes and cables as well as buildings on the brownfield may pose additional risks. However, experience has shown that the actual treatment measures are not an obstacle when it comes to the project decision. But still it is very important to give some more transparent and secure image to this unattractive "black box" sector. The following example of the industrial park Hoechst shows one possibility of winning the trust of investors through contractual regulations. The project Wasserstadt Povel, Nordhorn demonstrates successful brownfield redevelopment despite of very complicated contamination problems.

Example: Clear Redevelopment Clear Redevelopment Industrial Park Hoechst Obligations Rights

Chances and Risk Con- An essential element for the marketing Options for reuse of the infra- of this previously industrially used site structure available on site are tractually Controlled was a clear definition of possible envi- also contractually agreed. The ronmental risks. Responsibilities for infrastructure is provided by contamination were therefore contrac- the site operator Infraserv and The headquarters of Hoechst AG tually defined. Underground soil con- used jointly by different com- tamination was investigated by large panies in order to save costs. can look back on over 140 years scale tests on the entire site. 194 Infraserv also uses this as an of industrial use. In 1997 a 4.6 groundwater measuring spots have advantage over rural locations km² large site, until than exclu- been under permanent monitoring yet. where the corresponding envi- sively used by a chemical corpo- All groundwater flowing off the loca- ronmental, safety and disposal tion is pumped up and cleaned as much facilities would first have to be ration, was opened for a set- as necessary. Each investor receives approved and constructed. tlement of external companies. precise information about the contami- Since then, 80 companies from nation on the respective brownfield as The contractual regulation well as required decontamination made all relevant information different sectors have settled for the construction measures there. These new users invested measures, which must be coordinated with the authorities in charge. These available. Well-coordinated 1.6 billion Euro only from 2000 regulations protect investors from addi- cooperation with the authori- to 2003. tional decontamination demands. The ties in charge and low legal developer has worked out a concept of and economic risks promised the development of the industrial park and ensured by the site opera- in the future and performs the decon- tor allowed especially fast, tamination measures accordingly to simple and legally safe permit prevent time delays for potential inves- approval procedures. tors.

Special success factors: Special development obstacles: • Contractual regulation on • Complex contamination of the un- the environmental respon- derground sibilities ( contamination) • Previous industrial use, • Joint fulfilment of the envi- industrial environment ronmental responsibilities

Achievements of the investor: • Joint redevelopment of the industrial infrastructure Industrial park Höchst: old contamination under • Cost-efficiency and legal safety control • Offensive marketing (photo: © Infraserv GmbH & Co. Höchst KG) • 1.6 billion Euro of private investments in business settlements

Federal Environmental Agency – The Future lies on Brownfields Page 19 4 Project Examples

Example: The investigation and classification of Special development obstacles: the materials from demolished build- Wasserstadt Povel, ings within the scope of the redevel- • Soil contamination which was hard Nordhorn opment measures were therefore im- to localise portant to minimize the corresponding

Flexible Strategies costs. This material was evaluated, • High demands on new design analyzed chemically on-site and as- Special success factors: for Unknown Risks signed to a particular class depending on the contamination. In this way it • Linkup of redevelopment and urban was possible to reuse a large part of construction the material in road and route con- • Cost-efficient contamination clean It used to be a pilot pro- struction. Lighter contamination was up ject and remained an left to natural biodegradation proc- outstanding till today– esses, heavier contamination sanitized • General plans, consensus on step by the revitalization of with biological methods on-site. Wher- step development in sections premises of a former tex- ever this was not possible, the material was subjected to a soil wash or thermal • Cooperative project management tile factory Povel in treatment outside of the location. The • Personal engagement Nordhorn on the Dutch clean up levels were based on the re- border. spective future development plan. • Transparency and offensive public Through this approach, only a half of relations the excavated soil had to be treated, After the textile factory closed and only 0.7 percent had to be dis- Achievements of the investor: down in 1979, the revitaliza- posed as hazardous waste. • Almost entirely realized, com- tion of the inner city location pletely utilized was of special importance for An examination after the redevelop- the monostructure city. The ment on the Povel premises even • Redevelopment costs approx. 72 community purchased the 18 showed less soil contamination close to percent lower than conventional hectare large property, had the surface than in the surroundings. land filling most of the buildings torn The measures required during the re- • High cost efficiency: 15 million € down and flatten the ground. development also served for urban con- No one suspected any con- clean up costs, 160 million € private struction design. A sealed deposit of follow-up investments tamination back then. In 1983, material excavated during the decon- construction ideas for approx. tamination was turned into a landscape 500 residential units were de- pyramid with a vantage platform. Of- signed in an urban construction fensive public relation work with a competition. These plans be- transparent portrayal of the redevel- came obsolete when soil ex- opment process delivered project's ac- aminations in 1985 revealed ceptance. severe and hardly classifiable contamination. A complete removal of the contaminated soil would have meant unfeasi- Efficient ble cost for the planned pro- Marketing ject. Efficient This development by section approach reduced an annual financial require- Redevelopment ment of the city of Nordhorn. The project turned out to be very cost- Still the city adhered to its aim effective: total costs of 15 million Euro of a sophisticated future rede- as well as support funds by the federal velopment but the project par- government and the state enabled the ticipants agreed on a new type follow-up investments of 160 million of project development: taking Euro. Meanwhile, apartments for the various degrees of con- around 750 people were constructed in tamination into account, the the 'Water Town Povel' together with brownfield site was divided offices, shops, restaurants, doctor's of- into four sections, which were fices and two senior citizens' homes. developed in intervals. Differ- Today, approx. 95 percent of the area ent redevelopment variants called 'Water Town' is occupied and re- were designed for these sec- vived. The project received several tions in order to be able to awards, among others the 'best prac- flexibly react on the detail tice award' at the global settlement levels of contamination re- conference Habitat II in 1996 as well as vealed as the treatment pro- the DIFA award 2002 for innovative ur- gressed. This was necessary as ban planning and sustainable develop- it was not possible to reliably ment. Landmark Povel tower during and after predict the hazardous sub- redesign stance distribution despite the (photos © city of Nordhorn) previous exploration measures.

Page 20 Federal Environmental Agency – The Future lies on Brownfields 4 Project Examples

New Demand through New Ideas

In many cases, the largest handicap of brownfield redevelopment are not the implementation problems but simply a lack of demand. This especially applies to regions with declining population, regions afflicted by structural changes like the east German federal states where nowadays over one million flats lie vacant. On the contrary new priovately owned houses on rural land are still being constructed there. In Dresden, for example, 90 percent of the newly constructed houses are single family and semi-detached houses which is not an easy situation for brownfields in the inner city. But a current project in Dresden shows that brownfields in the inner city can be developed successfully even under these circumstances. Another project shows how suitable follow-up users were attracted despite the special circumstances of the locality of Pferdsfeld Airfield.

Example: Klahn advertised the idea in the real Under the title "High quality – Townhouse Project Dresden estate adverts in the newspaper to test affordable costs", the "town- the demand: "Home in the new town house project received the with garden, 5 rooms, only 200,000 Eu- GdW-BDA-DST builder-owner Garden in the Front, ro". A number of interested people re- award 200437. sponded promptly and were invited to Pub Row in the Back a joint meeting. They compared their Special development obsta- ideas and wishes with the previously cles: developed plans during a planning workshop. • Oversupplied housing mar- It was a brownfield from World ket War II – a site enclosed by dense At the end, nine builder-owners con- • High land prices compared block buildings at Bischofsweg structed a long stretched multi-family house consisting of flats in private to greenfields in the outer new town. There ownership. With an exception of some • Unknown location of base- had already been two unsuc- special construction features the house ment walls and old pipes cessful attempts to construct is built as a row house. This solution and cables from previous loft apartments on the 4,160-m² enabled to go around costly and space- use in the underground brownfield. requiring construction regulations and planning directives, for example the Special success factors: Than in 2001 the project de- changes in the land register and addi- • Flexible plans coordinated signer Thomas Klahn from Dres- tional fire protection walls and open- with prospective buyers den and the architectural office ings, which would have rendered the Thomas Knerer thought: "If so project impossible due to the cramped • Space and cost-saving con- conditions in the inner city. many young people want to struction of residential property with garden build their house outside of the Another feature of the design reduced city, why shouldn't this be pos- the costs: the three-story "townhouses" • Multi-family house design are space-saving and keep the heating sible here as well?" instead of several row energy consumption low. Due to the houses old wall remnants and underground cables and pipes throughout the site, it • Cooperation of the town was also decided not to construct administration costly basements and supply sheds on Achievements of the investor: border of the property instead. Each family can use the interior of the build- • Flats sold out at the start ing flexibly – whether it concerns the of the project already shape and location of the kitchen or living room, lodger flats or offices. The units can also be adapted to future requirements with lightweight construction walls and external staircases. The result came two years after the publication of the newspaper advert: indi- vidually designed and family-friendly homes for around 1,100 Euro per Townhouse at Bischofsweg: green living in a square meter of floor space – including

Wilhelminian style area (photo: © TKG Pro- 300 m² sites and all development costs. jektentwicklungsgesellschaft mbH)

Federal Environmental Agency – The Future lies on Brownfields Page 21 4 Project Examples

Townhouses everywhere

The principle of constructing "Rural residences" were also con- residential property with gar- structed on small sites on brownfields dens on a small site is so far in other cities. In the city of Erkrath common and very successful in near Düsseldorf 51 residential proper- the same time only in the ties were constructed by converting Netherlands and Great Britain. factory halls under monument protec- There are long waiting lists for tion and new constructions adapted to prospective tenants interested the old design on the premises of the in the inner-city townhouses. former "Rheinische Buntpapierfabrik". I used to be a coloured paper factory: apart- An investigation by the Federal Roof terraces and small gardens cre- ments in the historical building (photo: © Environmental office shows ated a place in the sun despite the DAS HAUS) that a high residential quality central location. The project which was in townhouses with gardens is realized without any public support also possible in Germany and funds received an award at the LBS-city it’s typical high building den- arms competition in 2000. All units sity in the inner cities38. Some were sold during the planning and con- brownfields in these inner cit- struction phase already and achieved ies have already been redevel- excellent sales results40. oped into residential constructions in "western European" Of course, this type of construction is style. Another townhouse vari- not suited for all inner-city brown- ant was constructed in Dres- fields. However, these examples show den, on the "Lukasareal" east that it can be well worth going new of the central railway station: ways in order to find new uses for po- 39 row houses on sites of tentials waiting on brownfields. approx. 100 m² each, which also provide a roof terrace be- sides a garden, were constructed on a large brownfield in the inner city. Despite of comparatively low demand in this quarter, most townhouses have been sold by now. The " Wüstenrot Foundation" voted the Lukasareal in Dresden among the top ten from 600 German residential construction projects39.

Lukasareal: with garden and sun terrace on the roof (photo top: © Kälberer; right: © Petersen Immobilien GmbH)

Page 22 Federal Environmental Agency – The Future lies on Brownfields 4 Project Examples

Example:

Airfield Pferdsfeld

"Good idea is the key..."

In times of low demand, brownfields can be attractive for commercial use if they have that certain something, which you cannot find on rural land. In these cases, the motto of the project development company Triwo AG is "good idea is the key".

The right idea was also the trig-

ger for the re-regeneration of a former NATO airfield located at the edge of the Hunsrück high- lands near Bad Kreuznach. These days, Opel cars are racing on the asphalt where military aircraft used to land until 1997.

What would have aggravated many other redevelopment concepts was here seen as a special chance: more than one fifth of This also allowed to offer the remain- Special development obsta- the 320-hectare property con- ing parts of the property at economic cles: prices. sists of transport infrastructure, • Very special pervious use: among others a 3 km long run- "…the rest is only work" an airfield, extensive air- way is available. field construction "The rest was only work", points out Special success factors: TRIWO Chairman Wilfried Biewer who Shortly after the soldiers left, the car did not see any obstacles in the follow- • Special future use as a test manufacturer was already interested in ing steps. A construction plan and an ground using the asphalt surfaces as test drive urban construction agreement was con- • Unsealing as part of com- tracks for its vehicles. However, only cluded between all project participants pensating measures for the temporarily, because a permanent re- in order to develop the project site environment development of the property required into an industrial area with the test substantial investments. The surround- grounds. In addition, the site was ex- Achievements of the investor: ing communities, which had established amined for contamination and possible a planning community, were not able environmental protection demands. An • Partially utilized, more to purchase the property, make the environmental compatibility check was companies attracted corresponding pre-investments and also performed. A corrective action in take over the economic risk. Then the terms of landscape compensation and project development company Triwo restoring of environmental balance was AG purchased the premises in January realized via an especially simple option 2003 after winning over the car manu- which was luckily possible on this loca- facturer as permanent tenant. Opel AG tion: previously sealed surfaces were wanted to use a half of the property as renaturized during the conversion and a test drive track and for a presenta- in this way the natural soil functions tion of its vehicles. Subsequently, the were restored. During this time a pos- state of Rhineland-Palatinate agreed to sibility of using the site as a test support the development of the prop- ground has attracted additional inves- erty in terms of conversion measures tors. The first vehicle construction and with 40 million Euro which was approx. supply company settled in even before Pferdsfeld airfield: take-off for a half of the investment needed. the completion of the planning process. test ideas (photo: © Triwo AG)

Federal Environmental Agency – The Future lies on Brownfields Page 23 4 Project Examples

Image Revival through Temporary Use

A frequent problem that emerges during brownfield redevelopment is a negative image of "contamination". Temporary use and its integration into a marketing strategy with a corresponding PR work are some of the possibilities of improving such an image. One nice example is a Backfabrik Berlin. The next example of Rosensteinviertel Stuttgart shows how temporary use can improve the "soft" location factor and the social environment with very little funds.

Example: Since then, these events have included "Normal" office users, like a lawyers, panel discussions, designer fairs, con- planning and consulting company and Backfabrik Berlin certs, art exhibitions or readings. an industry association feel at home in Approx. 5,000 visitors came to the in- the old factory. Temporary Use ternational comic festival Berlin in 2003, and the dance floors in the un- as Catalyst derground have been still crowded. Many events also took place during the There are many old fac- 2-year reconstruction phase. tories in Berlin which were converted into new concepts. But the "Back- fabrik" is famous. This is not due to its previous After the conversion: function of a central in- new events… dustrial bakery and it is not due to its present use with lofts and offices ei- ther. Much rather, the old name became a "brand name" because of the temporary use concepts applied on the spa- cious stories before its final conversion. The building was left to young creative people with lots of ideas and little money for their Prior to the conversion: a lot of space for projects. The rental contracts parties were limited to one year and could have been terminated …new Users are Coming monthly. This period of free- dom lasted for three years and While the visitors park their cars in a was used intensely for numer- newly constructed underground garage … new tenants (photo: © Heidi Scherm) ous activities: art studios, ex- in the evening, this car park is filled hibitions, events and a skate with the cars of the loft and office us- park. The clubs " Casino" and Special development obstacles: ers in the remaining parts of the build- "Cookies" attracted hundreds ing during the daytime. Managing Di- of people each week and large • Low demand for lofts and offices rector of R.E.M.M. attributes the fact events took place in other halls that the numbers are constantly in- Special success factors: for example a Love Parade par- creasing to the property's popularity. ties with 8,000 ravers. • Commercial continuation of the Although many of the companies in temporary use; use for marketing The Party goes on … media and IT sector which had origi- nally intended to locate their busi- Achievements of the investor: The group of companies nesses here failed to manifest after the Over 50% utilized R.E.M.M., which purchased the breakdown of the New Economy, the • property in February 2000, entrepreneur concentrated on a mixed • First tenants as "anchor users" are used the popularity of the use instead. Fashion designers,an inte- advantageous for further marketing location for their marketing rior design studio and several catering strategy. They continued using enterprises are some examples. a part of the building for events but under their own management.

Page 24 Federal Environmental Agency – The Future lies on Brownfields 4 Project Examples

Example: Rosensteinviertel Stuttgart

A Temporary Playground

Children and youths are playing Lots of Fun for Little Money Development obstacles: and learning a bit about nature Unfavourable real estate on an adventure playground on The costs were also within the limits: • market at present a brownfield where office build- the HVB contributed 20,000 Euro for ings will soon rise into the sky in rough modelling of the landscape, Special success factors: fence around the site and information the north of Stuttgart. A moun- brochures. The city invested 35,000 • Uncomplicated temporary tain bike track lets youths test Euro for volleyball court and other fa- use at minimum costs cilities, design of contractual regula- their skills, others play badmin- • Cooperation with the city ton or beach volleyball and tions, insurance and safety monitoring. and the residents children are playing on a mud The users of the projects invested above all their muscular power: guided Achievements of the investor: playground or in self- by an employee of the city administra- constructed houses made of tion, about 20 kids took up spades and • The image of a "brownfield" was diminished logs. shovels to shape the grounds for a mountain bike track. They also inde- • Improvement of social envi-

pendently designed some other ele- ronment Offering legally and at least temporar- ments on the site like a wall for graffiti • Good relations with the ily an unused site in a densely built-up artists etc. The city of Stuttgart per- town administration quarter for kids is not only a concern of ceives this project which did not only the town administration. A social boost turn out to be successful but also very of the surroundings was also in the in- cost-efficient as a model for temporary terest of the property owner HVB Im- use of brownfields and also wants to mobilien AG, who had already erected entice other property owners to follow office buildings of the "Media Forum this example. Then the kids might be Stuttgart" on neighbouring brownfields able to play on another site when their and was waiting for more advantageous playground will be torn down one day. market situation for a brownfield site spanning over 13,500 m² in the inner city. However, the prerequisite was that the owner would not have to take over the liability risk of a brownfield used publicly. The city of Stuttgart overtook this liability and agreed on redevelopment with the HVB . Both parties may have terminated the contract at short notice, for example when the HVB would wanted to realize the construction project. They also made sure that all facilities were easy to dis- mantle in order to use them elsewhere.

Plan sketch for temporary use: an adventure playground which the kids helped to construct © Project TERRENO GmbH & Co.KG

Federal Environmental Agency – The Future lies on Brownfields Page 25 4 Project Examples

Additional Project Essential Examples Success Factors

Additional project examples of The following list contains methods for an improved use of brownfields investors, builders, owners and real es- in the inner city are portrayed tate owners, which have turned out to on an information platform be especially successful in the exam- for internal development of ples introduced in this brochure as well the Institute for Urban Con- as in other projects. struction and State Planning. Approx. 109 examples describe • Establishing contacts with planning numerous brownfield redevel- offices and the authorities in charge opment projects. Links to addi- at an early stage tional information sources round off the presentation41. • Contacting experienced experts early The results of an analysis of 20 pilot projects from the re- • Utilization of the know-how and i- search program "Experimen- deas of external partners teller Wohnungs- und Städte- • Careful investigation of the location bau" [Experimental Housing and preliminary planning and Urban Construction] were published as cross/analysis of • Consensus-oriented, cooperative ExWoSt pilot projects for and flexible planning process brownfields redevelopment" by the Federal Construction • Project-related organization struc- Ministry (ExWoSt). It intro- ture duces essential approaches, • Public-private partnership for pro- instruments, hindrances and ject realization, financing and mar- success factors in all these pro- keting jects 33. • Continuous involvement of the The Internet platform Werk- community statt-Stadt published by the Federal Office of Construction • Coordination between site devel- and Regional Planning intro- opment and planning duces 98 innovative urban con- Contractual regulations about the struction projects many of • handling of risks which are brownfields redevelopment projects. Many of • Framework plans, step-by-step con- these projects were also exam- sensus ined in thecross/analysis42. • Personal engagement and power of decision of project managers • Personnel continuity • Offensive PR work • Marketing under a new name • Key projects and temporary use as marketing aids

Page 26 Federal Environmental Agency – The Future lies on Brownfields 5 Methods and Instruments

5 – Methods and Instruments: Overcoming Revitalization Obstacles

The analyses of experiences from brownfield redevelopment project have resulted in some recommendable methods in the past years, which help to design Project Coordina- projects more successfully and Overview of the Essen- tion and Organiza- overcome problems typical for brownfields. In addition, a num- tial Aspects tion ber of instruments of practical relevance are also available by As brownfield redevelopment projects A type of cooperation between now, for example manuals or span across numerous fields of action, project participants plays an databases. These methods and a summary of essential success factors especially important role in instruments concern very dif- can be helpful. the implementation of the project. ferent fields of action and disci- plines, for example project management, planning or the Check Lists for contamination cleanup. They Brownfield redevelopment Public-Private are therefore geared towards Projects Partnership – very different groups of players. Tips on Team Organi- A check list for brownfield redevel- zation In the following, we will introduce so- opment in the Internet provides an me of these methods and instruments. overview of essential aspects which From a large number of available in- should be observed for a successful Example: 43 formation sources. We have selected project realization . This list was pub- Weststadt Essen those of special interest for investors lished by the Federal Office of the En- or owners of brownfields. This selec- vironment32. The fields of action listed tion is by no means complete, as nu- from "F" to "K" are especially important merous additional instruments are cur- for investors. There are points to be In many cases, a cooperation rently being developed. observed there, for example interdisci- between private investors and plinary control groups, consideration of public institutions is the best This information deals above all with ecological aspects for determining a way to revitalize brownfields. typical handicaps of brownfields men- value of the property and flexible re- Due to the lack of capital and tioned in the previous chapters. It con- development concepts for changes in order to expand personnel cerns both problems of project coordi- caused by unexpected problems with and organizational possibili- nation and organization, handling con- the property. ties, more and more cities and tamination and present buildings as communities are willing to well as planning and marketing. plan and finance recycling projects in cooperation with private companies. With PPP, private investors benefit from more efficient planning, easier approval procedures, additional possibilities to obtain support funds and joint marketing.

The building of the Federal Office of the Envi- ronment is also located on old plots. Photo:© L. Tietz

Federal Environmental Agency – The Future lies on Brownfields Page 27 5 Methods and Instruments

The analysis of projects real- A publication of the Federal Office for Phase Concept ized in North-Rhine Westphalia Construction and Regional Planning in- by the German Institute of Ur- troduces new types of public-private – More Flexibility through banistik has shown that PPP cooperation, which also deal with the Step-by-step Realization accelerates many urban devel- revitalization of brownfields. It deals opment projects or makes with conditions required for a successful One essential attribute of many brown- them possible at all44. Among cooperation, types of institutionalization, criteria for the type of cooperation and field redevelopment projects is the other things, it became clear 45 procedural organization and financing . long duration from the project idea to that the earlier private part- successful real use. In this time chan- ners are involved in the pro- The study "PPP in Public Construction" ges can occur in the real estate market ject procedures, and the faster published by the Federal Construction and elswhere which mean additional the authorities remove proce- Ministry also helps with the practical realization of construction projects. The investment risks. In order to be able to dural and investment obsta- guideline (volume I) makes it easier for handle the project more flexibly during cles, the better it goes. Les- decision-makers in politics and admini- its development, we recommend split- sons learned and attitudes stration to benefit from public-private ting it up into project phases. This changed were noticed on both partnerships. But it is also helpful for all way, the time required for redevelop- sides as a result of the coop- other persons investigating the option of ment measures can be defined for indi- eration. PPP for a construction project. Volume III vidual subsections. Income from earlier (profitability analysis) enables the de- development phases can finance later There are many different co- termination of the most advantageous development activities. And the suc- operation options. The spec- and economic procurement variant with trum ranges from simple con- an objective and transparent method un- cessful development of the first project der consideration of the entire project phase (anchor development) facilitates tractual regulations, formation 46 of joint ventures or real estate lifecycle . the marketing of the subsequent leasing companies to an estab- phases. lishment of public-private de- When designing a project, one should velopment companies. Compo- make sure that each module functions sition and organization of the independently of the others and that project team play a crucial the individual phases do not obstruct role in the success of the pro- themselves when it comes to the reali- ject. The know-how of the pro- zation of the project. ject manager who has to meet many different challenges is especially decisive. He must be able to communicate and co- Examples: operate with the participants Wasserstadt Povel, Nordhorn on all sides and his leadership role must be accepted by all Channel Hamburg parties involved. Weststadt Essen

Rosensteinviertel Stuttgart

Page 28 Federal Environmental Agency – The Future lies on Brownfields 5 Methods and Instruments

Support Programs for Some the essential support programs The "Guideline about financ- Brownfield redevelopment are: ing options and aids for con- • EU European Structure Support: Eu- tamination removal and brownfields recycling" published by Via support programs, the federal gov- ropean fund for regional develop- ernment, the federal states and the ment (EFRD), joint initiative for ur- the Federal Office of the Envi- ronment provides an overview European Union provide funds for cer- ban sites (URBAN II), INTERREG III of public support programs by tain purposes directly or indirectly sup- (joint initiative for trans-European porting the revitalization of brown- cooperation) the EU, the federal government and the federal states fields. • Joint tasks (JT) of the federal gov- along with financing strategies, This concerns above all: ernment and the federal states legal aspects, public-private partnership models and insur- Contamination cleanup support pro- • Marketing and redevelopment con- • ance offers47. cepts, grams and urban development support programs as well as additional The manual for communities • Urban planning, special programs of the federal "Troop Withdrawal and Con- states • Detection of contamination and version in North-Rhine West- phalia" (part I) by the Interna- clean up, Grants from the German Communal • tional Conversion Centre Bonn Transport Financing Act (GVFG) 48 • Demolition of buildings and facili- lists additional support funds . ties, • Loan program of the federal gov- The information contained in ernment: loans by Kreditanstalt für • Development, both publications was col- Wiederaufbau (KfW) lected in 2000 and therefore is • Building renovation, • Support for special purposes, e.g. nowadays valid only in a part. • Assurance and project management the maintenance or write-off of as well as monuments or the promotion of culture • Real estate purchases and management. • Research and development as well as demonstration projects Most urban construction support funds are provided by the federal a states but the amount varies greatly from state to state. The real estate fund of the state of North-Rhine Westphalia is especially extensive. Indirect financial aid can also be of importance, e.g. in the shape of tax relieves which apply for example to industrial monuments, or programs for loans at special interest rates or the promotion of employment. It might also be possible to obtain funds in connection with the programs "Urban Conversion East" or "Urban Conversion West". The combination of several instruments often makes sense. As some of the sta- ted support funds are only granted to private investors or communities, a close cooperation between investors and public institutions is often the method to choose (public-private partnership).

Federal Environmental Agency – The Future lies on Brownfields Page 29 5 Methods and Instruments

Handling Contamination In principle, the polluter is obligated to This legislation gives all parties in- Examples: remediate the damage. If it is not pos- volved more legal safety and speeds up Wasserstadt Povel, Nordhorn sible to determine the polluter, the approval processes. In this context, it owner of the property is liable for the is also possible to consider the de- Industrial park Hoechst contamination. In order to speed up mands of future redevelopment against Weststadt Essen the decontamination and reactivation the cleanup contract or a binding de- of brownfields public authorities often contamination plan. Slightly contami- In principle, all sites previously take over a part or all of the investiga- nated material can be excavated and used for industrial purposes tion and cleanup costs. A state devel- left on site as a controlled deposit and are suspected to contamina- opment agency or a project develop- does not have to be disposed off as a tion. This also applies to for- ment company may take over the con- waste, which may result in substantial mer railway or military proper- tamination risk during the development cost savings. The limit values and qual- ties. However, this does not of the site for example. ity standards required by this ordinance mean that the entire site is enable more legal and planning safety contaminated. In many cases, With the example Wasserstadt Povel in and an easier assessment of contamina- exact tests show that only a Nordhorn, we portrayed an unusually tion and design cleanup levels. part of the site is contami- difficult contamination problem. With nated or that there is no con- many revitalization projects, however, Today we have systematic and largely tamination at all. It is only soil and groundwater contamination standardized methods available for the possible to provide rough de- only plays a subordinate role. However, detection of contamination and risk tails about the presence and the uncertainty with respect to con- assessment. A "historical investigation" severity of contamination in tamination risks may be an important provides an overview of the risk result- Germany due to the varying investment hindrance. This does not ing from previous use. In case of real statistical evaluation methods. only concern possible legal obligations suspicions, further investigations take Approx. 240,000 sites sus- but also financial risks, for example place (orientation examination, de- pected of containing contami- due to the necessary investigation and tailed examination, decontamination nation were recorded in Ger- cleanup measures or because of delays examination) with technical investiga- many so far. The risk assess- caused by necessary measures. For this tions, e.g. drillings and chemical analy- ment was concluded for ap- reason, it is recommended to define ses. At the end of each examination prox. 40,000 of these sites. Of the requirements in the contract ana- phase, the persons in charge decide those, roughly one quarter logical to the example of the industrial whether additional, more extensive contain contamination, mean- park Hoechst. With the project West- measures are required. If possible, ing they require (further) de- stadt Essen in turn, additional expenses cleanup measures are planned and per- contamination measures or are due to unexpected foundation rem- formed after this examination series. nants in the underground were re- subject to protection and limi- Site-specific cleanup are possible these tation measures. Decontamina- funded to the builder-owners or de- ducted from the purchase price. days in close coordination with the in- tion has been completed on vestigating authorities. These may in- about just as many sites. Some of the technical methods applied clude measures for microbiological or in Nordhorn were the best available thermal soil treatment, groundwater technology at the time. Meanwhile, cleaning or measures to prevent fur- they have become standard. For exam- ther transport of contaminants. It is ple, slightly contaminated soil could still important to apply the measures have only been deposited on-site and nessary for investigation, assessment only in the scope of a pilot project. and cleanup of contamination in right Today, depositing on site is generally time during the project. Good coordi- possible in line with the soil protection nation of the cleanup measures with laws, which were passed in the mean- respect to future redevelopment also time. Today a consideration of bringing turnes out to be an essential success decontamination and construction factor. 32. measures together is a generally recommended practice. In this way it is possible to agree on measures, extent and aim of the cleanup and covering of the costs in a public-private decontamination contract which was introduced by the federal soil protection act.

Page 30 Federal Environmental Agency – The Future lies on Brownfields 5 Methods and Instruments

Dealing with Buildings and Monument Protec- tion In terms of public-private joint Examples: projects cultural use of his-

Channel Hamburg torical buildings turned out to be especially meaningful. Weststadt Essen Backfabrik Berlin Contrary to residential or commercial use, the restric- Wasserstadt Povel, Nordhorn tions typical for historical Former Rheinische Buntpapierfabrik buildings (monument protec- Erkrath tion requirements, state of the building in technical terms, An essential feature of many brown- contamination, conditions for Instruments for the Assess- fields are formerly used buildings. In planning or image of the loca- ment of Contamination Risks many cases, these are outstanding ar- tion) are no essential obsta- chitectural or historical buildings, par- cles for many cultural use pro- tially under monument protection. jects. A brochure by the work committee of These buildings may be of advantage Financing of cultural projects DECHEMA (Association for Chemical for a project development, for example on brownfields have proven to Technology and Biotechnology) pro- when used for project marketing as ar- be without problems to large vides an overview of the risk associ- chitectural landmarks or places for extent. On the one hand, the ated with decontaminated or non- public events in temporary use pro- investment and maintenance decontaminated contaminated sites. jects. Just as often, however, thise expences are relatively low, on It explains legal, economic and eco- buildings are perceived as an obstacle the other hand, there are logical risks, health risks, technical and for to development, maybe due to pos- many public support options psychosocial point of view as well as sible contamination, uncertain con- available, which can often be insurability in detail. Methods for risk struction suitability, directives on combined. assessment as well as strategy recom- monument and fire protection or safety mendations for owners and investors at work. Cultural use of historical build- are also included49. ings may be an especially at- Due to increasingly sparser public funds tractive factor for a project Common methods for determining the for preservation measures, monument marketing. market value of propeties have deficits protection authorities increasingly ac- when it comes to brownfields. Even if cept and promote "sustainability Above all in the regions under- they consider construction and legal through redevelopment" with private going a structural change, a aspects, they hardly take into account investments. Some key examples her smart combination of remark- contamination. On the contrary envi- introduced refer to certain buildings able buildings with cultural ac- ronmental expertises are missing the under monument protection, which tivities often attracts great at- assessment of the value reduction from were made available for new develop- tention in the media and the the real estate point of view. The un- ment concepts in the frame of consen- public. enhanced "soft location certainty caused by this lack of infor- sus-oriented cooperation between the factor". is often also beneficial mation may tempt investors to prefer investors and the monument protection for a local and even a regional objects without suspected contamina- authorities. Among others they are the image. tion. With the "Environmental Value "Silo", and the "Kaispeicher Harburg" at Appraisal" for assessing the economic Channel Hamburg, the "Colosseum" in risk, the Saxon State Environment and Essen, the Povelturm in Nordhorn and Geology Office introduces the meth- the former Rheinische Buntpapierfabrik odological bases for determining the in Erkrath. monetary value reduction on the basis of available risk assessments50.

Federal Environmental Agency – The Future lies on Brownfields Page 31 5 Methods and Instruments

Four publications by the Fed- Costs and Benefits of Tech- The publication "Commercial Courts or eral Institute of Construction Apartments in old Factories" offers and Applied Construction nical Building Examinations assistance with the assessment of the Damage Research may be redevelopment possibilities for old fac- helpful for assessing the rede- "Aufwandsstufen bei Untersuchungen tories. It portrays chances and prob- velopment options of buildings an Bauwerken" [Effort Stages in Build- 51 lems of the redevelopment alternatives and the respective costs : ing Investigations] provides information "residential" and "commercial", respec- about the conception and assignment tive planning specifications, construc- of constructional examinations on tional demands and financing possibili- buildings for clients, architects and en- ties as well as estimates of the respec- gineers. By practical examples, the tive costs and yields. Both redevelop- brochure shows how to sensibly limit ment alternatives are compared on two the extent of the investigation. Be- realized projects. cause the costs of the investigation measures and consequently affected construction measures are specified a Tax Hints for cost-benefit comparisons are enabled. Monument Owners

Costs for a new use Tax allowances may be a substantial incentive for a preservation of histori- of Buildings cal buildings. The brochure "Steuer- tipps für Denkmalschutz" [Tax Hints The publication "Kosten neuer Woh- for Monument Protection] published by nungsnutzung in alten Gebäuden" the state of North-Rhine Westphalia [Costs of new Housing development in provides information about the types of old Buildings] provides orientation val- tax allowances for buildings under mo- ues for the costs of residential space nument protection. It describes the construction in old buildings. It is based deductible expenses for the purchase, on the systematic analysis of measures preservation and maintenance of such for the redevelopment of ten commer- buildings and demands of the tax and cial buildings under monument protec- monument protection laws. It informes tion. about assessed evaluation etc.52. The publication "Kosten von Bau- erneuerungsmaßnahmen" [Costs of Building Renewal Measures] contains a collection of data about cost from the state building administration surveys on building renewal measures, especially for conversion measures. These empiri- cal values can contribute to more precise cost estimates.

Page 32 Federal Environmental Agency – The Future lies on Brownfields 5 Methods and Instruments

Demand-oriented Planning and Marketing

Many obstacles also have to be over- Modern Planning Than other sites can be mar- come in planning and marketing of keted offensively. Examples many brownfield redevelopment pro- Instruments for such pioneer users are the jects, for example due to a lack of real first tenants in the projects we estate demand or a unfavourable image Examples: have already introduced here: of "industrial brownfields". In the fol- at Channel Hamburg and Nord- lowing, we will point out three meth- Channel Hamburg horn, in the musical theatre in ods, which have proven to be helpful in Weststadt Essen Essen and on the test track at many projects - appropriate mixed use- Pferdersfeld airfield. Wasserstadt Povel, Nordhorn for the location, suitable planning instruments and temporary and anchor If it is not possible to find any The amendments of German Construc- use. profitable use at first, it often tion Law in the past years have enabled makes sense to keep the loca- new planning instruments that aid tion alive through temporary brownfields revitalization. For example use. On the one hand, corre- Redevelopment private companies can perform urban sponding "social control" may Supplements construction measures within an urban counteract increasing dilapida- construction contract (e.g. soil decon- tion. This especially avoids the tamination) and safe thus some of the costs and risks caused by van- Examples: costs, while other tasks (e.g. site allo- dalism or illegal waste dump- Channel Hamburg cation) are borne by the public authori- ing. On the other hand, an in- ties. The contract guarantees that the Wasserstadt Povel, Nordhorn formal "revival" may give the goals designed in the construction plans location a new and interesting Townhouse project Dresden e.g. future use of the site and ecologi- image at relatively low ex- cal compensation measures will be de- Weststadt Essen penses. This way, brownfields livered. And that the project carrier can be used as a location for Backfabrik Berlin can enjoy more legal and planning cultural events, artist lofts or (Industrial park Hoechst) safety. It gives a community a chance as sports or recreational sites to create necessary planning prerequi- without changing owners or Especially brownfields close to the in- sites for the construction development the planning law. Such tempo- ner city offer good prerequisites for the in relatively short time. With larger rary use concepts can help to development or supplementation of projects, it often makes sense to con- improve residential quality, mixed quarters. These quarters already nect a project-related construction especially in unattractive areas offer previously mentioned "soft loca- plan with an urban construction con- affected by structural changes. tion advantages". Present redevelop- tract. Furthermore, a community can As an approach for further im- ment on a brownfield site itself or in purchase a site, develop a construction proving of the surroundings, the neighbourhood may offer connec- plan, have the site developed by a de- this may in turn have a positive tion points, which facilitates develop- veloper and then resell it to the previ- effect on the location as such. ment in the area. Thanks to the possi- ous owner in the scope of an urban For example, in Berlin, the bility to directly supplement existing construction or sanitation measure. proximity to playgrounds in structures in the quarter the brown- residential areas boosted the fields projects bear less risks than land values by up to 16 percent completely new mixed use projects at Temporary and Anchor Uses and lots of trees in the sur- the outskirts of the city. General condi- roundings increased the real 55 tions (location, real estate situation), Examples: estate prices by 17 percent . the urban development concept and Additional positive effects we- Backfabrik Berlin the implementation method are impor- re observed when upgrading tant factors for the success of mixed Rosensteinviertel Stuttgart quarters by using brownfields uses. in the inner cities as "green" In the marketing of brownfields the spaces, for example a reduced Experiences made with mixed uses so measures which improve frequently crime rate56. Many brownfields far were compiled in a publication with negative image of the brownfield have sites offer marketing advan- the title "Chancen für Nutzungsmis- proven to be very helpful. tages especially through tem- chung aus der Sicht von Investoren" porary use and by being urban [Chances for Mixed use from an Inves- Many times, an "anchor user" or a key 53 environment, which rural loca- tor's Point of View] . The research project act as an attraction factor for tions cannot offer. program "Experimenteller Wohnungs- further prospective investors. There- und Städtebau" [Experimental Housing fore, one should first look for a repre- and Urban Construction] offers addi- sentative tenant or buyer who can de- tional information54. fine a desired direction of the development. Extensive PR work is much more effective after this first step.

Federal Environmental Agency – The Future lies on Brownfields Page 33 5 Methods and Instruments

Overview of Additional Instruments

An overview of additional work tools is published on the website of the Insti- tute for Water Construction at Stutt- gart University. The database for re- searching practice-oriented literature about brownfield redevelopment is the result of the "Roadmap" project, which is supposed to communicate research results for practical applica- tion58.

A Five-volume manual "Handbuch Alt-

lastensanierung und Flächenmanage- ment" [Decontamination and site Man- agement] describes methods to secure and clean contaminated land as well as recommendations for brownfield redevelopment. It deals with methods of PR, conflict solutions, marketing, financial assessment of ecological liabili- ties, urban construction conditions, fi-

nancing options and legal questions of decontamination, etc. 59. "Südgelände" in Berlin, art and nature protection where trains used to ride (photo: © Kälberer)

Property owners may also Many owners have reserves to these agree with the community on rather unconventional ideas, for exam- reduced financial obligations ple when it comes to their liability ob- during the time of temporary ligations. However, specific contract use, for example with respect options between property owners and to rainwater charges or land temporary users have already been tax. proven as effective. The Federal Office of Construction and Regional Planning refers to practical experiences in its publication "Zwischennutzung und neue Freiflächen" [Temporary Use and new open Spaces] and provides information about the implementation, legal questions and financing57..

Page 34 Federal Environmental Agency – The Future lies on Brownfields 5 Methods and Instruments

Development of Work Tools

The task of the European re- At present, a computer-assisted guide- A decision to purchase or develop search project RESCUE is to line is being developed, which is sup- brownfields requires substantial infor- learn from successful methods posed to facilitate the handling of mation. If this information is missing or but also from previous mis- brownfields for property owners, hard to obtain, brownfield redevelop- takes. The Federal Office of builder-owners and urban planners62. ment projects can be severely hin- the Environment was also in- dered. The so-called site passport / volved in the research of Also, a database CONUS is currently certificate is an instrument that makes economicaly feasible and last- being developed in order to simplify a brownfield site more transparent and ing brownfield redevelopment the cost estimates for revitalization provides information for decision- projects, which were per- projects and make them more reliable. making and planning available at any formed in such a way that they A computer program will help to verify time. This document is supposed to are successful for both the en- a project idea in early decision phases, contain essential information about the vironment and society as well even if there is not much information site, especially its potentials and risks, as for investors and other fi- available about the location and in- and should always be kept up to date. nancial contributors. The re- trested parties have limited experience In general, it is supposed to cover the sults will be included in a with redevelopment projects. The pro- following issues: essential property European manual for sustain- gram comprises of standard measures data, evaluation and financing, eco- able brownfield redevelop- for dismantling buildings and infra- nomical type of the location, general ment and in an online training structure on the property, unsealing as construction conditions and restrictions program too (to be published well as how to handle contamination like contamination or ground charac- in May 2005). Recommenda- and old munition and the necessary teristics. The site certificate should be tions of more effective and planning and preliminary investigation. part of an electronic database or a supportive instruments were The new instrument is based on the re- brownfields’ register (partially realized sults of a research project by the Fed- also prepared for the political 63 by the construction management Stutt- decision-makers60. eral Office of the Environment , which gart, for example8). This accelerates served to clarify gaps in existing guide- planning and approval process, im- At present, the Federal Office lines and clear up contradictions in proves safety of projects and facilitates of Construction and Regional regulations. comparison with other sites. At pre- Planning is preparing creative sent, the Federal Office of the Envi- solution strategies which ronment is preparing recommendation should help to get the brown- for the exact design of site passports/ fields in less attractive areas in certificates, especially the parameters suburban regions to real estate to be recorded. market. These will be used to develop a player-oriented guideline for brownfields reactivation, introducing case studies for subsequent redevelopment as well as financing possibilities. 61. A compendium of time and cost-saving technical methods for assessing contamination risks on site by site basis for sites which were so far not or not sufficiently examined was compiled in the scope of the EU research project NORISC. Mainly geophysical assessment methods determined in this context are supposed to help to asses the future requirement for decontamination measures and redevelopment restrictions. The information obtained in this way can be recorded in brownfields registers or site passport / certificate and may be helpful for the management or marketing of brownfields.

Federal Environmental Agency – The Future lies on Brownfields Page 35 6 Information Sources

6 – Information Sources: Web Links and Literature

(Status of the publications in the Internet: January 2005) This brochure is based on a large number of information sources. In the following, we will only refer to sources of special interest for investors, builder-owners or real estate owners.

Profitability of Area Recycling: 1 Basel II company rating: www.ax-net.de/inhalt/basel2/einleitungbasel2.htm 2 IAS/IFRS balancing: www.ax-net.de/inhalt/allgemein/ias_kuzform.htm 3 Information campaign “Close Future” www.nabu.de/m01/m10_01 4 Position Paper "Strategisches Flächenmanagement und Bodenwirtschaft" (www.nachhaltigkeitsrat.de/service/download/dialog_flaeche/Positionspapier_Deutscher_Staedtetag.pdf) 4 Federal Agency Landesbausparkassen (Hrsg.) (2001): Wohnen auf Brachen – Documentation of the LBS- City Arms Competition 2000 6 Sustainability strategy of the federal government of 17 April 2002: www.nachhaltigkeitsrat.de/n_strategie/strategie_2002/index.html 7 Tomerius, S.; Preuß, T (2001): Nachhaltige Ressourcenschonung – Flächenmanagement/-recycling: Aktuelle Hemmnisse und Lösungsansätze in den Städten. - Deutsches Institut für Urbanistik, Berlin (www.difu.de/publikationen/difu-berichte/4_00/artikel7.shtml) 8 NBS - Nachhaltiges Bauflächenmanagement Stuttgart - Project describtion: www.stuttgart.de/sde/item/gen/54825.htm - Area Marketing: www.stuttgart-bauflaechen.de 9 Resident construction land register and construction land register at www.dresden.de - siehe "Themenstadtplan", column "Wohnungsbaustandorte" 10 Information brochure of the state of Brandenburg about building in the inner city: www.literatur.mir.brandenburg.de/index.php 11 Model project regional commercial area pool Neckar-Alb (Final report – brief summary): www.regionalverband-neckar-alb.de/downloads/ge-pool_kurzfass.pdf 12 Development concept for the reactivation of free town areas in Murgtal: www.isl.uni-karlsruhe.de/wwwprojekte/murgtal2/set.html 13 Genial zentral – unser Haus in der Stadt: www.badlangensalza.de/fileadmin/genialzentral/genialzentral.htm 14 Communal area resources management Bavaria : www.stmugv.bayern.de/de/boden/flaech/flv3.htm 15 Results of the expert talk "Communal area resources management“: www.ecologic.de/download/projekte/1800- 1849/1828/Flaechenressourcenmanagement.pdf 16 Federal Office of the Environment (publ.) (2004): Reduzierung der Flächeninanspruchnahme durch Siedlung und Verkehr - Strategy paper of the Federal Office of the Environment; UBA texts 90/03, Erich Schmidt Verlag, Berlin. 17 Recommendations of the Sustainability Council: www.nachhaltigkeitsrat.de/service/download/publikationen/broschueren/Broschuere_Flaechenempfehlung.pdf

Current Research Projects: 18 Cost-efficient survey of the brownfields stock in Thuringia : www.brachflaeche.de/Projekt.html 19 Siedlungsentwicklung und Infrastrukturfolgekosten – Bilanzierung und Strategieentwicklung: www.bbr.bund.de/aufbau-ost/infrastruktur/19_projekt.html 20 Concerted Action on Brownfield and Economic Regeneration Network: www.cabernet.org.uk

Page 36 Federal Environmental Agency – The Future lies on Brownfields 6 Information Sources

Real Estate Industry Potentials: 21 Karin Wiest (2004): "Inseln des Aufstiegs in schrumpfenden ostdeutschen Stadtlandschaften" in: Forum Wohneigentum, volume 5, p. 262 - 265 22 Bernhard Müller, Stefan Siedentop (2004): "Wachstum und Schrumpfung in Deutschland – Trends, Perspektiven und Her- ausforderungen für die räumliche Planung und Entwicklung" in: Deutsche Zeitschrift für Kommunalwissenschaften, volume 1/2004. 23 Leibniz-Institut für Regionalentwicklung und Strukturplanung (2004), (article in "Die Welt" dated 27 Jan 2004: www.welt.de/data/2004/01/27/228782.html?prx=1) 24 Federal Office of Construction and Regional Planning (2003): Lebensbedingungen aus Bürgersicht: www.bbr.bund.de/veroeffentlichungen/berichte/band15.htm 25 DEMO 2001/09: Stadt als Wohnstandort: www.demo-online.de/article.php/iArtID/283 (login kostenlos) 26 Institute for State and City Development Research (2002): Demographische Entwicklung – Schrumpfende Stadt: www.ils.nrw.de/publik/pdf/demogr-entw.pdf (S. 11-13) 27 Investigation of migration motives by the city of Munich (2002): Raus aus der Stadt? www.muenchen.de/vip8/prod2/mde/_de/rubriken/Rathaus/75_plan/01_aktu- ell/02_projekte/s_u_wanderung/pdf/wanderungsmotivuntersuchung.pdf 28 Technical University Hamburg-Harburg (1998): Auswirkungen der Umlandwanderung auf den Hamburger Wohnungsmarkt (www.tu-harburg.de/stadtplanung/html)/ab/ab_106/ag_2/downloads/umlandwanderung_lang.pdf, 3,1 MB) 29 LBS Norddeutsche Landesbausparkasse (1999) Wohnmobilität in der zweiten Lebenshälfte - Motive. Erwartungen. Poten- tiale; Hanover. (http://www.lbs-nord.de/PL6D/pl6d.htm?detail_snr=11&detail=1&snr=47) 30 Publications of the Institute Empirica about seniro citizen real estate and types of residences for the elderly (www.empirica-institut.de/cgi/litsrch.pl?searchstring=Seniorenimmobilien) 31 Publications of the Institute for State and City Development Research of the state of North-Rhine Westphalia (2001): - Neue Entwicklungen beim Gewerbeflächenbedarf: www.ils.nrw.de/publik/sonder/gewerbebedarf.htm - Zur aktuellen Gewerbeflächenpolitik. Anforderungen an künftige Gewerbeflächen: www.ils.nrw.de/publik/sonder/gewerbeflpol.htm

Evaluation of Area Recycling Projects: 32 Federl Office of the Environment (1999): Strategy recommendations for effective area recycling, UBA texts 10/2000 (www.umweltbundesamt.de/altlast/web1/berichte/recycl/recycl.html) 33 Federal Office of Construction and Regional Planning (publ.) (2004): Querauswertung von ExWoSt-Modellvorhaben zum Flächenrecycling (www.bbr.bund.de/exwost/pdf-files/Teil3_Querauswertung.pdf, 5,4 MB) 34 Member survey and strategy recommendations of the workgroup "Revitalisierung von Brachflächen" [Revitalization of Fal- low Areas] in: Willmann Dr. W. et al (2004): Revitalisierung von Brachflächen als Aufgabe von public-private-partnership – Ein Fahrplan zur beschleunigten Wiedernutzung gewerblicher und industrieller Altflächen. Prepared by order of the South-Westphalian Chamber f Commerce and Industry, Iserlohn

Backround Information to the Project Examples in this Brochure: 35 ExWoSt–Forschungsfeld Städtebau und Wirtschaft: www.bbr.bund.de/exwost/forschungsfelder/015_staedtebau-wirtschaft.html 36 Werkstatt-Stadt presentation of Weststadt Essen: www.werkstatt-stadt.de/ipros/03_suche/detail.php?projekt=75 37 Townhouse project Bischofsweg, Dresden: www.stadthausprojekt.de 38 Wulf Hülsmann (2001): Potenziale und Strategien einer flächensparenden Siedlungsentwicklung (www.umweltdaten.de/rup/siedlungsentwicklung/huelsmann.pdf) as well as Federal Office of the Environment (2000): Szenarien und Potentiale einer nachhaltig flächensparenden und landschaftsschonenden Siedlungsentwicklung – UBA reports 1/00. 39 Lukasareal Dresden: www.lukasareal.de 40 Former colored paper factory Erkrath: www.content-immobilien.de/referenzen-berlin.html

Federal Environmental Agency – The Future lies on Brownfields Page 37 6 Information Sources

Collection of Additional Project Examples: 41 Information portal "Innenentwicklung vor Außenentwicklung": www.isl.uni- karlsruhe.de/wwwprojekte/innenentwicklung/plattform/index.htm 42 Internet platform Werkstatt-Stadt: www.werkstatt-stadt.de

Helpful Methods and Instruments: 43 Questionnaire "Checkliste Flächenrecycling": www.umweltbundesamt.de/altlast/web1/berichte/recycl/recycl-10.5.html 44 German Institute for Urbanistics (1997): Public Private Partnership im Städtebau - Erfahrungen aus der kommunalen Pra- xis – acht Fallbeispiele aus nordrhein-westfälischen Städten, in: difu reports 1/97 (www.difu.de/archiv/Ber-97-1.pdf) 45 Federal Office of Construction and Regional Planning (publ.) (2002): Neue Kooperationsformen in der Stadtentwicklung - Werkstatt: Praxis volume 2., BBR (publ.) (www.bbr.bund.de/exwost/bestellservice/werkstatt_praxis_02-02.html) 46 PPP im öffentlichen Hochbau: www.ppp-bund.de/hochbau.htm 47 Federal Office of the Environment (2001): Ökonomische Aspekte der Altlastensanierung - Leitfaden über Finan- zierungsmöglichkeiten und -hilfen in der Altlastenbearbeitung und im Brachflächenrecycling“ UBA texts 04/2001; (www.umweltbundesamt.de/altlast/web1/berichte/finanz/finanz.htm) 48 Manual of the Bonn International Center for Conversion: www.bicc.de/publications/other/handbuch/index.html 49 DECHEMA Gesellschaft für Chemische Technik und Biotechnologie (publ.)(2003): Bewertung verbleibender Risiken sanierter und nicht sanierter Standorte (www.dechema.de/60_2003___Risiken_Standorte.html) 50 Saxony State Office for Environment and Geology (2001): Marktorientierte Bewertung altlastenbehafteter Grundstücke - Materialien zur Altlastenbehandlung 2001 (www.umwelt.sachsen.de/lfug/veroeffentlichungen/verzeichnis/Abfall- Altlasten/SalfaWeb/salfaweb-nt/print/mza3_01.pdf) 51 Publications of te State Instititute for Construction and applied Construction Damage Research : www.lb.nrw.de/publikation/intro_publikation.htm - C. Arendt (1992): Aufwandsstufen bei Untersuchungen an Bauwerken - Wirtschaftlichkeit bautechnischer Untersuchun- gen, Ziele, Struktur, Kosten, Fallbeispiele, volume 2.18, Aachen - H. Pieper, U. Meisel (1991): Kosten neuer Wohnungsnutzung in alten Gebäuden. Fabriken, Krankenhäuser, Gewerbebau- ten; volume 2.4, Aachen. - H.U. Ruf, V. Hartmann, S. Holtmann (1988): Kostenplanung - Kosten von Bauerneuerungsmaßnahmen; Band 1.11, Aa- chen - S. Hennig, U. Meisel (1989): Gewerbehöfe oder Wohnungen in alten Fabriken. Kosten und Wirtschaftlichkeitsvergleiche an Beispielen; volume 2.5, Aachen 52 Ministry of Urban Development and Housing, Culture and SPorts NRW and Finance Ministry NRW (2001): Steuertipps für Denkmalschutz, Düsseldorf (www.lb.nrw.de/publikation/mswks/sb_262_popup.htm) 53 Aring, Jürgen; Altena, Olaf; Pfeiffer, Ulrich (1997): Chancen für Nutzungsmischung aus der Sicht von Investoren. Materialien zur Raumentwicklung, volume 81, BfLR / Federal Office of Construction and Regional Planning, Bonn 54 ExWoSt-Forschungsfeld „Nutzungsmischung im Städtebau“: www.bbr.bund.de/exwost/forschungsfelder/020_nutzungsmischung-kb.html 55 Luther, M. and Gruehn, D. (2003): Die Bedeutung eines grünen Wohnumfeldes für den Wert von Immobilien. In: Die Wohnungswirtschaft 56 (3): p. 68-72 56 McKay, T. (1998) ‘Empty spaces, dangerous places’. ICA Newsletter, Vol. 1(3), S. 2-3. in: www.cabespace.org.uk/data/pdfs/TheValueofPublicSpace.pdf (2,3 MB) 57 Federal Office of Construction and Regional Planning (2004): Zwischennutzung und neue Freiflächen - städtische Lebens- räume der Zukunft (www.bbr.bund.de/aufbau-ost/standortentwicklung/06_projekt.html)

Overview of Additional Instruments: 58 Compilation of practice-oriented literature about area recycling (www.iws.uni-stuttgart.de/Vegas /deutsch_html/forschungsschwerpunkte/flaechenundoeko/flaechenrecycl/roadmapbmbf/literaturliste.php) 59 Franzius, V; Altenbockum, M; Gerhold, Th. (Hrsg.) (2004): Handbuch Altlastensanierung und Flächenmanagement (www.huethig-jehle-rehm.de/shop/product.html?id=101937&top)

Page 38 Federal Environmental Agency – The Future lies on Brownfields 6 Information Sources

Development Work Aids: 60 Regeneration of European Sites in Cities and Urban Environments (RESCUE): www.rescue-europe.com 61 Federal Office of Construction and Regional Planning (2005): Akteursorientierter Leitfaden für Brachflächenreak- tivierung: Strategien für suburbane Räume (www.bbr.bund.de/aufbau-ost/standortentwicklung/07_projekt.html) 62 Network Oriented Risk Assessment by Institut Screening of Contaminated Sites (NORISC): www.norisc.com 63 Federal Office of the Environment (publ.)(2003): Fachinstrumente Flächenrecycling Kostenermittlung für Flächenauf- bereitung – KONUS: www.umweltbundesamt.org/fpdf-l/2817.pdf

Federal Environmental Agency – The Future lies on Brownfields Page 39 6 Information Sources

Page 40 Federal Environmental Agency – The Future lies on Brownfields

Published by:

ICSS at the Federal Environmental Agency P.O.B. 1406 06813 Dessau GERMANY

Tel.: +49-340-2103 3008 Fax: +49-340-2104 3008

Funded by:

German Ministry of Education and Research

-BMBF -