Deciding the Right Use Making the Intrinsic Land Value Creation Explicit in Port Area Redevelopment
Total Page：16
File Type：pdf, Size：1020Kb
DECIDING THE RIGHT USE MAKING THE INTRINSIC LAND VALUE CREATION EXPLICIT IN PORT AREA REDEVELOPMENT DECIDING THE RIGHT USE Name: Jamie Bal Student nr.: 4582152 Student of the Technical University of Delft Date: 29-06-2021 1st mentor: Karel Van den Berghe 2nd mentor: Paul W Chan Graduation organization: Synchroon Development Pagina 2 van 113 DECIDING THE RIGHT USE MAKING THE INTRINSIC LAND VALUE CREATION EXPLICIT IN PORT AREA REDEVELOPMENT COLOFON: Name: Jamie Bal Student nr.: 4582152 SUPERVISORS: 1st mentor: Dr. K.B.J. (Karel) Van den Berghe 2nd mentor: Prof. dr. P.W. (Paul) Chan Examiner: Dr. R.J. (Robert) Nottrot Graduation organization: Synchroon Development Faculty: Architecture and the Built Environment Master: Architecture, Urbanism and Building Sciences Track: Management in the Built Environment Date: 29-06-2021 Pagina 3 van 113 PREFACE This thesis is the result of a one-year graduation process at the Technical University of Delft for the master Management in the Built Environment (formerly Real Estate and Housing). Even though I once started at the university with the idea of becoming an architect, I learned along the way that the architect is just one of the links in how our built environment is shaped. The way we manage our cities, manage the creation and transformation of real estate, and manage all the other actors involved all add to how our built environments will look like. This insight formed the basis for this thesis too. The thesis is about the land use decision in port areas, and how the intrinsic land value is created with different actors and their different perspectives involved. This is examined through literature review and examined for two cases (i.e. RDM and M4H areas) in Rotterdam. This report presents the research and the findings in the domain or urban area development. With this thesis I hope to contribute to the academic field of urban area development and the port- city interface, with a grasp of knowledge and findings from literature, an internship, and two port case examinations with corresponding interviews. With a lot of joy, I have participated at Synchroon to discover the developer perspective on value creation. I would like to thank René de Witt in particular, and all the others involved, for giving me the opportunity, in spite of the difficulties of covid-19 times, to participate in ongoing projects and work on my thesis at Synchroon. In addition, I would like to thank all the others at Synchroon that helped me with interviews, non-formal chats, ideas, or any other way in my personal development or with obtaining data in regard to the developer perspective. In particular I want to thank Karel Van den Berghe and Paul W. Chen, as mentors from the University of Delft with their feedback, and help during the process. Your input has always been genuinely appreciated. Finally, I would like to thank everyone else, and all companies, that helped me with interviews, or in any other way in contributing to the research. It has been a challenging time, due to covid measures and restrictions, and a big compliment to all co-students and everyone else from the TU Delft in their efforts to keep everyone engaged, helping each other out, and make the completion of the master period as pleasant as possible. Enjoy reading! James Bal Rotterdam, July 2021 Pagina 4 van 113 ABSTRACT Urban planners in Dutch cities are looking for ways to intensify the land use in cities, as a result of compact city policies and an increasing market pressure in Dutch cities. Hence, brownfield sites such as ports or other industrial or business locations are designated for redevelopment, mostly for residential or commercial use. Intensifying the use of especially redundant or neglected areas can create a lot of benefits for as well the city as the port. At the same time waterfront redevelopment sites are amongst the most complex to develop (Daamen, 2007). That is why it is important to understand why we choose for redevelopment to new or other uses. This research examines the intrinsic land value creation for two cases in the port of Rotterdam and how the intrinsic land value was created as a result of the actor arena and the involvement and perspectives therein. Through literature is first sought how we can explain intrinsic land value and what it comprises. Thereafter, the intrinsic land value creation is examined in retrospect for the M4H and RDM sites in Rotterdam. These two related cases are particularly interesting as they resulted in a different outcome than a complete transformation from port to city, implying that different values and dynamics in the debate for land use appeared than compared to Hamburg, Havenstad and other waterfront redevelopments usually examined in port-city interface literature. It appeared that intrinsic land value can either be affected by context changes or actively be created through development. The intrinsic value of a location or land can be described through location factors that are in nature actor-based, context-based or location-based. These can be categorized in factors from a classical, behavioral, institutional or evolutional approach. From the cases appeared that intrinsic land value was created incrementally over time which was subject to a lot of context impact and different strategies employed by actors to influence the actor involvement and perspectives. The port involvement has grown over time in both cases and new intrinsic value has been created for port activities due to an expansion of port activities from scale- enlargement and polluting industries to smaller-scale manufacturing with a strong added value and knowledge component to it. The main value creation aimed for is long term and strategic. This gradual perspective changes was caused by, and also in turn influenced, the port involvement in the two cases. The different actor arena in the two cases has led to different area developments. For the RDM case, the Port of Rotterdam dominant involvement has resulted in a innovative and manufacturing cluster focused on maritime use and collaboration with educational partners. The M4H case, with the municipality as equal partner and the involvement of developers, includes a lot of residential and commercial uses too. The innovative making cluster in the M4H emerged from a mutual innovation agenda (digitalization and energy transition) and the need to enhance and diversify the economy for the port and city. It can be concluded that all of the location factor perspectives (classical, behavioral, institutional and evolutional) are required to understand port-city interface developments and area redevelopment in general. Also the impact of the actor arena, and the perspectives and involvement therein is an interplay, that deserves more research in the future, to understand how we come to our redevelopment outcomes in the port-city interface, as well as other inner-city redevelopment projects. Key words – Intrinsic land value, port area developments, actor arena, actor involvement, actor perspectives, port-city interface Pagina 5 van 113 TABLE OF CONTENTS SUMMARY ............................................................................................................................................... 8 1. INTRODUCTION ................................................................................................................................. 16 1.1. Introduction topic ....................................................................................................................... 16 1.1.1. Pressure on the city ............................................................................................................. 16 1.1.2. Port-city interface discussion .............................................................................................. 17 1.1.3. Intrinsic land value .............................................................................................................. 19 1.1.4. The actor arena ................................................................................................................... 20 1.1.5. The developer involvement................................................................................................. 20 1.1.6. Problem statement .............................................................................................................. 21 1.2. Relevance ................................................................................................................................... 22 2. RESEARCH DESIGN ............................................................................................................................. 23 2.1. Research goal ............................................................................................................................. 23 2.2. Research questions..................................................................................................................... 23 2.2.1. Main question ..................................................................................................................... 23 2.2.2. Sub questions ...................................................................................................................... 23 2.3. Methods ..................................................................................................................................... 23 2.3.1. Qualitative approach ........................................................................................................... 23 2.3.2. Case selection