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For the Marche Region JESSICA JOINT EUROPEAN SUPPORT FOR SUSTAINABLE INVESTMENT IN CITY AREAS INCORPORATING JESSICA INSTRUMENTS INTO THE OPERATIONAL PROGRAMME (OP) FOR THE MARCHE REGION December 2009 This document was produced with the financial assistance of the European Union. The views expressed herein must in no way be taken as a reflection of the official opinion of the European Union. This study was carried out by the company Ecosfera SpA The following report is enclosed together with this document: “Development in the cities of the Marche Region. The contribution of the JESSICA program” Compiled by Professor Antonio G. Calafati (Università Politecnica delle Marche) with the collaboration of Francesca Mazzoni and Paolo Veneri INDEX INTRODUCTORY NOTE............................................................................................................ 1 PREAMBLE................................................................................................................................... 1 AIMS OF THE STUDY ...................................................................................................................... 1 METHODOLOGICAL APPROACH AND STRUCTURE OF THE STUDY.......................................................... 2 PART I: SURVEY OF THE URBAN TRANSFORMATION MARKET IN THE MARCHE REGION ................................................................................................................ 4 I.1 EXPERIENCES OF INTEGRATED PLANNING OF URBAN DEVELOPMENT ............................................. 4 I.1.1. The cities of the Marche region in the “comples programmes” initiative ..... 4 I.1.2 The experiences of public-private partnerships within integrated urban programmes ................................................................................................................................. 7 I.1.3 Strategic planning................................................................................................. 7 I.2 THE CONTRIBUTION OF PRIVATE ACTORS IN THE PROCESSES OF URBAN DEVELOPMENT .................. 11 I.2.1. Financial institutions active in the regional context........................................ 11 I.2.2. The role played by financial institutions within the framework of urban and territorial development projects........................................................................................ 13 I.2.3. Innovative modalities of involvement of private and financial actors in initiatives promoted by local administrations................................................................... 14 I.3. PROJECT-DEVELOPMENT CAPABILITY MANIFEST IN THE TERRITORY: INITIATIVES WHICH CAN BE DEVELOPED COHERENTLY WITH THE JESSICA MODEL............................................................... 15 I.4. SITUATION OF THE REAL ESTATE MARKET ................................................................................. 16 I.4.1 The real-estate market in Italy ........................................................................... 16 I.4.2 Focus on Pesaro and its province ..................................................................... 18 I.4.3 Focus on Jesi and the Province of Ancona..................................................... 24 I.4.5 Some conclusive considerations on the real-estate market in the Marche region 31 PART II: IMPLEMENTING JESSICA IN THE MARCHE REGION AND THE STRUCTURING OF PILOT CASES................................................................................................. 33 II.1 THE CONSTITUTION OF ONE OR MORE “JESSICA” FUNDS IN THE MARCHE REGION: VIABLE PATHWAYS ......................................................................................................................... 33 II.1.1 Resources available for the activation of JESSICA ......................................... 33 II.1.2 Possible financial architecture for the activation of JESSICA ........................ 36 II.1.3 Structuring of the projects in the form of project vehicles ............................. 38 II.1.4 Project vehicles activated within the context of the Marche region .......... 47 II.2 PRESENTATION AND ANALYSIS OF THE PILOT CASES.................................................................. 48 II.2.1 Structuring of operations - intervention programmes..................................... 48 II.3 ECONOMIC-FINANCIAL ANALYSIS OF THE PILOT CASES ........................................................... 56 II.3.1 Methodology ....................................................................................................... 56 II.3.2 Funding hypotheses and scenarios .................................................................. 57 II.3.3 Costs-Revenue analysis ...................................................................................... 58 ECOSFERA S.P.A. III II.3.4 Cash-flow analysis ............................................................................................... 59 II.3.5 Pilot case: Pesaro ................................................................................................ 59 II.3.6 Pilot Case: Jesi ..................................................................................................... 78 II.3.7 Financial analysis at the level of the Urban Development Fund .................. 96 II.4 CONCLUSION................................................................................................................... 102 II.4.1 Comments on the economic–financial analysis........................................... 102 II.4.2 Final considerations and recommendations ................................................. 102 INDEX OF FIGURES ............................................................................................................. 104 INDEX OF TABLES................................................................................................................104 INDEX OF GRAPHS ............................................................................................................. 105 ENCLOSURE: SUSTAINABLE DEVELOPMENT IN THE CITIES OF THE MARCHE REGION. THE CONTRIBUTION OF THE JESSICA PROGRAM. ECOSFERA S.P.A. IV Glossary JESSICA: Joint European Support for Sustainable Investment in City Areas ESDS: European Space Development Scheme ERDF: European Regional Development Fund ESF: European Social Fund ROP/NOP: Regional Operational Programme / National Operational Programme RIP UAF: Regional Implementation Programme of the Underused Areas Fund NSF: National Strategic Framework RSP: Regional Strategic Plan UTC: Urban Transformation Company PF: Project Financing UDF: Urban Development Fund ECOSFERA S.P.A. V INTRODUCTORY NOTE PREAMBLE Within its framework, the ROP ERDF 2007-2013 for the Marche Region does not provide for an axis specifically dedicated to sustainable urban development. The choice denotes a countertrend with respect to the overall framework of ERDF planning for the Italian regions. The Regional Operational Programme however contains an Axis (the fifth) entitled “Valorisation of territories”, by means of which the intention is established to above all to promote and sustain action aimed at safeguarding environmental, artistic and cultural assets and also the recovery and protection of areas that present high levels of risk associated with both natural and anthropic phenomena. Within this context, as expressly indicated in the planning document, it is possible to envisage the funding of interventions in favour of the physical re-qualification of urban areas. Moreover, it would be reasonable to state that, in line with the majority of the ROPs (2007-2013) of the Italian regions relating to the Competitiveness and Employment objective, the ROP ERDF of the Marche region primarily aims at achieving the community objectives contained in the Lisbon strategy and, that is, to increase the level of competitiveness and technological innovation of the regional socio-economic and productive system. In this sense it is particularly useful to recall the role which the policies and guidelines of the European Union (from the ESDS 1 to the Leipzig Charter) assign to medium-level cities and urban settlements. They are to be called upon to be the actual drivers of sustainable and competitive development for the territories, especially in those areas of the continent that are more peripheral and less densely infrastructured. Although historically characterised by a ‘scattered’ territorial layout and by the absence of metropolitan centres, over the last few decades the Marche region has gradually and, in the main, spontaneously developed a system of urban districts and agglomerations of a certain importance. This structure, a careful analysis and definition of which was the subject of the study conducted by a team of the Università Politecnica of the Marche region coordinated by professor Antonio Calafati in parallel with this work2, represents an important context in relation to which the JESSICA initiative may be developed in the region. The urban districts can play a fundamental role in imparting greater impetus to technological innovation and contributing towards raising the level of quality and competitiveness of the regional economy, as centres where services of an increasingly high level are provided and as physical sites where it is possible to concentrate resources to be invested in research and training and, that is, in the development of the so-called Economy of Knowledge (Lisbon). In light of the above, the necessity to explicitly indicate a strategy for sustainable urban development to be pursued through
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