Aspects of Urban Regeneration in The Zeytinburnu Project Murat Balamir - [email protected] with Ö.Kıral, M.Burnaz, M.Kayasü and the post-graduate students of CP 501-2 (2004)

WHY TURKEY HAS TO SHIFT RESOLUTELY TO POLICIES OF REGENERATION?

The Domestic Production (Chart-2): The main promoter of housing production and the source of variations is the blocks of flats, comprising more than 90% of total private investments. The other components of total production show no significant increases or variations in time.

The International Comparison (Chart-1): The Surplus (Chart-3): Chart-1 is an understatement of facts because international Contrary to claims of ‘housing deficits’ in urban areas statistics contain reinvestments in existing stock besides in Turkey, a clear surplus in production is observed. ‘new starts’. The ratio of reinvestments is particularly high Compared to growth of households. This is yet another in stock-saturated countries. Actual new starts are therefore understatement: lower than observed. Available figures on urban housing production represent Figures for Turkey on the other hand, stand only for authorised authorised dwellings only. This means that actual production investments. No figures are available for unauthorised lies somewhere 30-50% above this curve. production. Estimates for the period under consideration are The household statistics on the other hand refer to total not lower than 30-50% of total production. The red curve is urban population including households accommodated in therefore significantly higher than observed. the unauthorised part of the stock. This high comparative performance prevailed, despite Despite the surplus, 35-40% of urban households are tenants, deficiencies in capital availabilities and low GDP levels in indicating to the disparities in urban social groups based on Turkey. It was the special property ownership arrangements property ownership. in production processes that released such capability.

CONCLUSIONS: 1. Turkey has produced in global terms a significant volume of stock, within a limited period. Pace of production has barely allowed full professional services and supervision. As a result, the dominant nature of urban areas are low standard and low-quality unauthorised environments, representing large pools of risks. 2. Even though the ratio of rural population has to drop further in the near future, for an economy compatible to , the rate of urbanisation is levelling and it is probable that the surplus is to persist. 3. Turkey cannot afford to follow the same policies of town expansion for another number of decades. Turkey has to upgrade its urban environment extensively, introducing better infrastructure, transportation systems, public services, shifts in scale economies, ensuring higher safety, reclaiming superior design standards and aesthetics, re-structuring social justice, and make a historical turn to comprehensive policies of urban regeneration. IN WHAT WAYS THE NEED FOR URBAN REGENERATION IS CURRENTLY PERCEIVED IN TURKEY?

Urban regeneration has recently been Municipality of Ankara is responsible for The Draft Law of Urban Regeneration a central issue of consideration, and the preparation of a plan (1/5000), subject and Development: attempts to regulate this process have to the approval of the Ministry. All Still another draft law is currently under multiplied in Turkey. This may be due public and private property is subject to review in the Parliamentary Committee. to risks involved, or aspirations of compulsory purchase. This is preferably This has almost identical wording with appropriating rents involved, or simply carried out with mutual agreements the Law of Municipalities, reducing only for the sake of appearances. There between property owners and the the regeneration area to 10 000 m2, and is no uniform undestanding of what Municipality. An inventory of property allowing a phased implementation. The regeneration is. owners entitled to specific shares in draft law provides absolute powers to the prospective property is to record the size, municipalities not only in the preparation The Law of ‘Greatercity development type, and the legal status of of plans and projects, but also in the Municipalities’ (5216; 2004): current property. This provides options appropriation of all property, and the Prerogatives given to these authorities for individuals (tenants included), and arrangement of rights of development include the preparation of ‘Strategic describes a programme of payments, the and use, even in the cases of absentee Plans’ which are essentially socio- value of the existing property deduced ownership. economic in nature, besides physical from total debt. The non-conforming (article 7a). ‘environmental plans’ property owners are subject to the special Action Preferred by the Metropolitan (7b), and plans concerning disasters procedures of the Compulsory Purchase Municipality of (MMI): (7u). Powers to ‘vacate and demolish Law (2942, article 3), empowering the Disturbed by the earthquake loss dangerous buildings, and to ‘demolish all municipality to distribute payments up assessments, the MMI intends to carry out other non-conforming structures’ (7z) are to 5 years. The Greater Municipality surveys of the existing stock, identifying vested with these municipalities. They of Ankara is entitled to have access to buildings destined to collapse. The are capable of instituting partnerships credits of the Housing Administration. residents of such buildings will be eligible with local municipalities and private for the option of owning a new ‘safe and firms, or establishing firms themselves. The Draft Development Law: high quality’ dwelling elsewhere in the They can participate in services and The intended Law empowers the new development areas of metropolitan costs of projects carried out with public, municipalities in the designation of Istanbul. These households will then be private bodies or NGOs (24n), national several types of special planning areas liable to pay back a long-term (20-30 or international. These municipalities for the purposes of implementing projects years) credit debt. Concurrently, MMI are also entitled to institute ‘financial concerning protection, regeneration, is to undertake a building programme organizations’, and to undertake many intensive development, and public and/or with resources provided by the Housing forms of partnerships in comprehensive private investments. Municipalities are Administration of Turkey. Distributed regeneration projects (26). obliged to carry out mitigation plans to various subdistricts in groups, it is to reduce disaster risks, if ignored, the claimed that pilot implementations The Law of Municipalities (5215; Ministry could use its prerogatives. They totaling twenty thousand dwelling units 2004): are entitled to determine the location and will be completed in two years. This Municipalities are responsible for size of areas for such operations, prepare is said to correspond to an investment protecting natural, historical and plans and projects. The municipality or programme of 2 billion US Dollars. cultural assets in their functions of plan the majority of the property owners in Pointing to the fact that 70% of the preparation. They can exercise powers an area could form partnerships for the Istanbul stock of one million buildings of compulsory purchase for this purpose redevelopment and/or joint management is unauthorised, the Mayor demanded and for housing provision; start firms, of the area. Besides physical operations of free access to Treasury lands in order to borrow capital, issue shares and paper clearance, development, protection, such accomplish the total ‘survival project’. assets (68). Municipalities of 50 000 and projects are envisaged to cover policies Although there are multiple attempts to above can designate areas (not smaller of finance, management, ownership and regulate urban regeneration processes than 50 000 m2) for ‘urban regeneration means of socio-economic development. in Turkey, there is little real world and development projects’ and risk The tools for such operations are experience or finely detailed projects reduction (73). Processes of demolishing determined by the municipalities, which based on authentic circumstances. or altering existing buildings under this are entitled to 30% of the property values One exception has been the case of pretext are subject only to 0.25 of regular and 25% of building surface increases Zeytinburnu, a most vulnerable district duties. Voluntary agreements with generated. “Protecting the rights of in Istanbul in the face of the impending property owners are the preferred method the original owners, the municipalities earthquake. in regeneration projects. This does in these areas could carry out lease not however exclude the prerogatives agreements, servitudes, comprehensive of exercising compulsory purchase. project development, tendering for Disagreements have priority to other construction, supervision, arranging cases in the courts. shares according to the Flat Ownership Law, management organizations, etc.... The Law Concerning the Northern and demolish existing buildings avoiding Entry to Ankara (5104; 2004) public purchase” Such property will be This special Law aims to improve the exempt from sales and purchase taxes for appearances and ‘life standards’ of a 5 years, and VAT will be applicable at the delineated project area. The Greater rate of 1%. COMPREHENSIVE REGENERATION IN THE VULNERABLE DISTRICT OF ZEYTINBURNU, ISTANBUL

The District-Level Prospects as a Basis center, design and fashion center, Special Policy Areas in Zeytinburnu for Regeneration integrated with training, workshops, Other than the Nodes and the Spine, Located at the centre of Istanbul and and congress centre, exhibition, fair, Zeytinburnu district has a number of close to the fault-line, Zeytinburnu show-rooms, hotels, office complexes special areas that require distinct spatial has a number of major potential sites of corporate firms etc. to up-gear the policies. These are the Water-Front, the and development prospects at the industrial sectors of Zeytinburnu. Major Wall-Front Tourism Band, the High Risk metropolitan scale. These will have shopping and outlet centers next to Çırpıcı Valley-Front, the E-5 Channel direct impact on the regeneration of the the motorway could complement this Bands, and the Industrial Zone, each district, and plans will have to base their complex leading to an agglomeration demanding special incentives. of almost 8 million m2. This justifies strategies on their shaping. Large tracks Local Community Partnerships an investment strategy to mobilise of land available at two distinct points (Super-Blocks): in the area constitute a rare opportunity most of the Zeytinburnu industrial and commercial capital, incorporating both Regeneration processes in the residential at the metropolitan level. The fate of stock will be under the physical and the Commercial and Industrial Chambers these areas is not unpredictable as many economic pressures of macro level of Istanbul. decisions are already made. However the tendencies and policy changes in the sheer size of these investments demands 3. Zeytinburnu URBAN SPINE is likely area. The property owners in this context careful planning and procurement, to develop between these two attraction will be encouraged for local cooperation involvement of investors from abroad, nodes (1200m.) even if not envisaged by and partnerships in self-financing and competitive mechanisms in their any plan. Intensive demand on this axis redevelopment schemes. The overall design and development. It is essential to will favor mixed uses at high densities. monitoring will take place by revisions in clarify the macro-level scenarios, prior to Development Partnerships can operate the Development Plan, the Municipality the monitoring of regeneration operations in this area, providing shares to existing identifying the Super-Blocks (of about at the level of local communities. property owners, the municipality, 1000 households) for the purpose. The community partnerships, and other partnership in the Super-Block is not Nodes and the Spine: right holders. A central pedestrian axis, necessarily different from the familiar 1. The METROGAR complex is very a promenade, plazas, open and green flat-ownership management practices likely to take place on vacant land South public spaces could mark the main in individual buildings. The details of the local regeneration model based on of the railway, as the terminal point of Spine, accessible by public transport partnerships are described below. the Trans-European Rapid train (TER), stations, and underground carparks. and the surfacing point of the Marmarail. Such public investments will justify Hierarchy of Interrelated Rent-Generating This prospect is to transform the area increased densities and partnership of and Transferring Mechanisms: into a most prominent node of Istanbul the Municipality. The Develoment Plan One of the major objectives of where all metropolitan, regional and could be revised here to indicate the regeneration operation in the district is international links of rail, sea, land new rights of development in the case to involve all real and legal persons in transportation modes and routes will of unified building plots, encouraging the formation and management of assets converge. This immense potential is property owners to form Partnerships, in the area. Community Partnerships will to prove very high rates of return, and entitling them to higher densities if be eligible for shares (however small) deserves special projects exploiting they do incorporate transferred rights of in the rent generating Urban Spine international investment capacities development. and Consortiums, alongside with the in transport and tourism facilities, Municipality, land owners and investors. commercial, offices, etc., where up to 10 million m2 of building floor area can be estimated to agglomerate. Special organizational skills are necessary to monitor this attractive investment area, in the form of Consortiums or REITs led by the Metropolitan Municipality. Planning and design of the area could largely be carried out by national and international competitions. 2. The Northern Development Area ZEYTİNBURNU (METROMOD) consists of two neighbouring large sites available for intensive development on the E5 motorway, and represents a unique opportunity. The area can be developed as a multi-purpose complex, an outlet center for leather and textiles industries backed Fault lines under sea by a techno-park, R&D and information ZEYTINBURNU SUB - PROVINCE ISTANBUL

Prepared for the UK-Turkey Urban Regeneration Symposium, 22 March 2005 Ankara 500 printed at Ünal Ofset. COMPREHENSIVE REGENERATION IN ZEYTINBURNU BY MEANS OF COMMUNITY PARTNERSHIPS

The purpose of this project is to demonstrate preparation of an overall Master Plan; 2. No free external resources, subsidies or that comprehensive regeneration could prove 2. Assessment of likely investments grants will be assumed available; Rather, viable in physical, economic and social and developments in the near future in as self-financing schemes, it is the property terms, even under most adverse conditions. Zeytinburnu, and exploiting such tendencies owners’ own economic capacities and Zeytinburnu has comparative advantages to speed up regeneration processes; long-term credit and debt programmes in comprehensive regeneration within coordinated under Community Partnerships, 3. Methods and tools to attract property the metropolitan context. Unique local that comprehensive regeneration will find its owners and other stake-holders in Partnerships opportunities exist to capitalize and generate resources; for cooperating in local and macro-level an impetus for total physical change and physical and social improvements in the area; 3. This is a ‘campaign management’ project robust development. to create a climate of total mobilization, 4. Engagement of interest, participation and involving each and every individual and The Need for Comprehensive contributions of local communities in the group of the community in mitigation efforts; Regeneration in the Residential Areas of process, through regular information systems; Zeytinburnu employment of residents in regeneration 4. Through the Community Partnerships, property owners will become share-holders in The dominant form of development in activities, and in special social projects to the Development Corporations, Consortiums, Zeytinburnu is unauthorized blocks of flats upgrade employment, incomes, and living Urban Spine enterprises, and other income on informally subdivided land. Although standards, devised particularly for the low generating bodies in Zeytinburnu; all technical and engineering services were income groups in Zeytinburnu. avoided at their inception, a minor part of 5. Preparation of an explicit ‘organisational 5. The redevelopment will lead to higher this stock experienced legal registration after procedures road-map’ to identify stake-holders safety and quality in urban environments; 1984. This does not however make them any and responsibilities in the coordination of to social organisations that allow collective safer. The urban texture characteristics are Consortiums, Development Corporations and management of larger urban areas, and narrow and irregular roads, complete coverage local Community Partnerships. a new representation system in the city in plots, small frontage, 4-5 storey high blocks administration; with high proportion of circulation spaces in Targets and Principles 6. The model devised here with its physical, the buildings. This represents not only a 1. Residents as owner occupiers and tenants organizational, financial and legal apparatus waste of space, but also a large pool of risks. will not be forced out from their habitats, will be replicable in other areas in Istanbul When EQ strikes, risks are consistently very unless hazard characteristics dictate otherwise; and Turkey. high irrespective of whether one is within Gentrification will be avoided; the buildings or out in the street. This is the fundamental reason for a comprehensive 241 Buildings 4500 Persons regeneration, rather than a retrofitting policy 990 Dwellings confined to singular buildings. Retrofitting of the unauthorized stock is legally and socially PLOT not viable. Another reason for comprehensive COVERAGE regeneration is the intense need for social and economic promotion of households, and the BUILDING enhancement of community life, collective DENSITY activities and spaces. It is essential to improve life standards, introduce variety in economic sectors and employment, and induce social integration in Zeytinburnu, besides physical redevelopment. A comprehensive regeneration approach will not only discard the idea of piecemeal retrofitting operations but also invalidate partial attempts as widening of ‘evacuation boulevards’.

The Scope of Regeneration 1. Integration of the recommendations of the EQ Mitigation Plan for Istanbul (EMPI) and the measures envisaged in the sub- province governorate Emergency Plan in the Existing Densities Spatial and Physical Aspects Economics and Finance

Economics and Finances of Regeneration Two voluntary constraints are imposed here. The operation is a self-financing project, and no incidental external resources are deemed essential for regeneration. If such resources are available, these would only act as a bonus to make regeneration more attractive. Secondly, the deal will offer no building area in return for the services of a developer, but a normal rate of profit, contrary to the conventions in Turkey. This is to avoid gentrification. On the other hand, two financial and procedural burdens often confronted in regeneration projects are avoided here. No ‘compulsory purchase’ is necessary since this is a voluntary Building Development Preferences property development partnership, and an extensively-practiced easement in the A Regeneration Model Based on Local is unified through Community Partnerships. construction of single blocks of flats will Partnerships The investigation here considered a densely suffice. Secondly, the task of ‘current values An outlying feature of the model described (3.5) packed area (plot coverage 0.80), and assessments’ is avoided. The operation here here is the role of Municipality in activating questioned if methods are available for will only have to take into account the existing deed shares and recalculate them in terms of and enabling local communities to start redevelopment, and if densities could be new totals. This will be the basis for new partnerships for the redevelopment and further increased to fulfil specific objectives: as protecting the tenants and avoiding rights subject to minor corrections according management of Super-blocks (of about 1000 to the ‘as built’. dwellings). Programs will be conducted gentrification in the area, minimizing to attract and inform households about the running costs, accommodating all cars The total costs of development is to include the developers’ average profit rates and obligations, advantages and procedures of underground, or compensating some ratio of disturbance costs of the residents. These will be participation. Such campaigns will employ the debt programmes. Even in such packed met by the individual credit debt programmes. as many residents from the area as possible. areas it is observed that 15-20% increase in building densities are feasible due to space It is most likely therefore that costs of Special programs will be organised for temporary accommodation will be minimized, economies of unification without concessions a small group of authentically poor and individuals exploiting their own means to the from urban space standards. A second set handicapped households. The nature of this end. The mass removal of residents and of participation is not any different from the of considerations dealt with the shaping their household items could well be organised widely practiced ‘flat-ownership’ procedures. of buildings. Tunnel-frame construction, by the Municipality to reduce such costs to a Households will undertake individual credit symmetrical designs, lowering centre of minimum by competitive tender. Yet it is the debt programs organised by the Partnership gravity, pyramidal sections in monolithic organizational capacities and the rendering and the Municipality, in return for rights to bodies with high rates of concrete curtain of superior professional conduct that the redeveloped property and a bundle of other walls in either axes avoiding lifts were model demands. Under the circumstances, an rights. preferred for higher safety and relatively individual debt programme of 20 years for a lower construction costs. Such preferences 100m2 dwelling unit will imply a payment of Redevelopment and Physical Design also promise alternative aesthetics, design 420 YTL/month. Varying sizes in dwellings Options solutions and some capacity to change urban allows a range of monthly payments (300- 550YTL). These could be described as rental Many alternative site plans and urban identity in the city. This unification promises a rewarding area of professional practice for payments for housing. About one third of designs could be devised when a scope for this amount is usually paid by the owner- comprehensive renewal arises as property architects and urban designers.

Mixed-use Layout (Housing, workshops, commercial, services) Social Preferences Structuring occupiers in terms of running costs, which are WHY WILL RESIDENTS FAVOUR THE PARTNERSHIP MODEL? nullifi ed in the renewed property. If another one third of such costs were compensated by Aspirations for living in an EQ-safe environment with prestigious urban public resources, the total resources required standards for activating the whole residential stock in Istanbul would be about twice the amount Relief from the unauthorised state and its pending penalties Turkey has very recently volunteered to raise Value increases in property held, up to 3-4 times of present value for the Tsunami victims. This would have Extra building area to existing (collective ownership and titles to car-parks, reduced the individual payments to the order of 150-200 YTL/month. storage, workshops, rental dwellings) In macro-economic terms, the greatest All maintenance and running costs covered by collective income to part of the capital engaged in regeneration Partnerships according to this model would have a very Familiar democratic and powerful management and representation principles of low opportunity cost. Yet on the other hand, the triggering of the construction industry, ‘fl at-ownership’ apply and therefore the contribution to the overall Community income fl ow from shares in local investments, Urban Spine, and economy and labour markets are immense. Consortiums Social Policies Low-interest long-term credits obtained through Municipal intermediary Regeneration in Zeytinburnu is not confi ned action to operations of physical redevelopment, Project preparation and building procedures carried out at lower costs and in but a social process representing a shorter periods, exempted from administrative costs transformation into authorised and registered conduct. Changes are to occur not only in Supervision of constructional work under municipal responsibility at lower property ownership but also in business, costs employment, and in many aspects of life. Exemptions from Bank and Insurance taxes and costs Moving into a registered economy requires careful monitoring. Smooth change will House-moving and disturbance costs accounted within the total costs necessitate economic sweeteners, business Temporary exemptions from property taxes, and low rates for periods extending and property tax exemptions, concessions for intermediary periods, etc. This is a new up to ten years socialisation process, and a move to higher Obligatory EQ Taxation at lower rates when collectively paid by the level organisational structures. Social projects Partnership of various types have to complement the Comprehensive Regeneration process: Temporary exemptions from taxes concerning purchases and sales, exchange, and inheritance of property Compensations for tenants ousted from Zeytinburnu, reimbursements of Rights of current tenants protected by access priorities in collectively-owned rentals covered for three years, shared excess stock, at former rental values for a minimum of 5 years between the Partnership involved and the Municipality Opportunities for participating in numerous social projects, fi nancially supported A system of training and accreditation of by external sources, providing options for new jobs and additional income developers, builders, building components and materials providers and workers of different categories, with priority to local WHY WILL THE RESIDENTS CONSIDER PARTNERSHIP MODEL AN resident labour IMPERATIVE? Training courses in EQ mitigation Concerns that the EQ could infl ict heavy damages and loss of life measures and emergency skills Concerns that the Illegal State of Ownership could bring heavy penalties in Training courses in the tourism services sector for Zeytinburnu residents the near future as these are to be effective soon, introduced by the Penal Law Projects to promote employment (2004) variability and job enhancement Likely action of the Municipality to send notice to property owners about the Training of Municipal personnel for Risks of the buildings and declaring it a Public Nuisance the new management tasks involved in regeneration projects; New database Likely action of the Metropolitan Municipality to exercise its powers to demolish formation and management the building Schedule of annual concessions from Possibility of Compulsory Purchase with extended periods of payment property taxes and other municipal burdens for business enterprises Measures and intervention tools recently introduced by the Housing employing local labour Administration Law, the Municipalities Law, and several draft laws Tax exemptions and other subsidies to local Partnerships that start constructional activities in 3 years Issuing Municipal bonds for the tax incomes of 2010-15, etc. with access priorities to local Partnerships Micro-fi nancing of households intending to operate workshops and small business Social agreement that each local community Partnership unit is represented in the Municipal Council, to ensure also at least 1/3 in each gender Urban design options are available at similar densities (from published international examples) Implementation

STEPS OF IMPLEMENTATION AT The basic urban configuration introduced here is only a means to investigate the viability of THE MACRO LEVEL physical redevelopment, and indicating to the advantages available even of simple ‘slab and 1. Collaborative Preparation of Master perimeter blocks’ against the existing pattern of conventional individual plot development Plan and Area Programmes by the in relaxing figure-ground relations. It is a method of verification that higher urban standards Municipality than existing are possible, even if total building densities are increased by 15% at a most 2. Consortium and REIT formation by the Metropolitan Municipality in tightly-packed area. It is the unification of urban land in larger sizes that enables space collaboration with the local Municipality, economies an provides opportunities for new horizons in urban design. Superior designs Chambers of Industry and Commerce, and many alternative aesthetics are available to reshape appearances in our cities within International Enterprises the organisational, procedural, financial, legal, and social guidelines introduced here. Every 3. Encouragement of local communities for Partnerships formation incentive given for the formation of Community Partnerships is therefore an immense 4. Revisions in the Development Plan contribution for improved life standards, safety, environmental quality, and for the promotion 5. Preparation of concept projects and of local society and democracy. marketing of Consortium areas 6. Procurement of credits programmes with financing groups 7. Preparation of application projects and entitlements 8. Temporary accommodation arrangements 9. Supervision of constructional activities 10. Adopting to the new organizational and administrative context

STEPS OF IMPLEMENTATION AT THE MICRO LEVEL 1. Participation of individuals in residents information campaigns 2. Participation in Partnership formation procedures and claim of rights 3. Participation in project development procedures 4. Application for individual credits 5. Moving and temporary accommodation arrangements 6. Participation in supervision, completion and reclaiming procedures of property 7. Moving in and monthly payments 8. Participation in the new management administration and representation processes

ACTORS IN REGENERATION All actors must find some incentive or reward commensurate to its contribution to the regeneration process: Public: Prime Ministry, Ministries, Housing Administration, Governorate, Metropolitan Municipality, Municipality (Coordination, credit arrangements, legal provisions, REITs, Consortiums, Corporations) Private: Developers, Financing and Project Management Bodies (specialized co-ordination, integration and monitoring services), National and International Investors Local: Participation of the Municipality in Community Partnerships and Management Bodies Formed by Property Owners (a ‘flat ownership’ regime as practiced widely in individual buildings)