Technische Universität

dp UD 2018 | 3 Waßmannsdorf An Eco Friendly Rural Center

Urban Development Discussion Paper Nr. 2018 | 3 Berlin, October 2018 Urban Development Discussion Paper Nr. 2018 | 3

2 Campus El Gouna – 2018 Imprint

Imprint

Volume: Urban Development Discussion Papers

Issue Nr.: 2018 | 3

Issue Title: Waßmannsdorf – An Eco-friendly Rural Center

Editors: Technische Universität Berlin, ­Zentralinstitut El Gouna, ­Department of Urban Development: ­Prof. Dr. Rudolf ­Schäfer, ­Dr.-Ing. Hassan ­Elmouelhi, Papon Dev M.Sc., ir. Paulus van der Kuil M.Sc., Ira Lemm M.A., Eslam Mahdy M.Sc., Martin Meyer M.Sc.

Author: Abu Bakar Agwani, Sneha Dinesh, Lamya ­El-Sabban, Theodor Skaufel, Nikhil Ravindra

Place, Date: Berlin, 13th of October 2018

ISBN: 978-3-9820367-1-7

9 783982 036717

Department of Urban Development 3 Urban Development Discussion Paper Nr. 2018 | 3

FOREWORD

In October 2018, the Department of Urban Development at the Campus El Gouna star- ted the publication series “Urban Development Discussion Papers”. In these discussion papers – published at irregular intervals – we present the results of our own research projects to an interested audience. The publications consist out of student project reports, master theses, doctoral dissertations and other research. Each paper is digitally available in PDF format on our website and as print on demand. We invite you to com- ment, criticise and discuss our research.

On behalf of the editors

Prof. Dr. Rudolf Schäfer Study Dean Urban Development

4 Campus El Gouna – 2018

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Table of Contents

1. Note of the Editors ...... 9 2. Executive Summary ...... 11 3. Site Analysis ...... 13 3.1. Demography ...... 13 3.2. Survey ...... 14 3.3. Commercial activity...... 16 3.4. Architecture...... 17 3.5. Legal Situation ...... 18 4. Market Analysis ...... 21 4.1. Housing Demand...... 21 4.2. Retail Demand ...... 26 4.3. Office Demand ...... 28 4.4. Startup Demand ...... 29 4.5. Bicycle lanes and resting area...... 32 5. Stakeholder Analysis ...... 35 6. Conclusion market and site analysis ...... 39 7. Concept ...... 40 7.1. Vision ...... 40 7.2. Concept Benchmark ...... 40 8. Programs ...... 42 8.1. Provide Energy Efficient Housing ...... 42 8.2. Provide Housing Needs ...... 44 8.3. Make Waßmannsdorf More Green ...... 45 8.4. Green Tech Accelerator ...... 47 9. Urban design ...... 49 9.1. Zoning ...... 49 9.2. Master Plan...... 49 9.3. Accessibility ...... 50 9.4. Material Guideline ...... 51 9.5. Synergies ...... 51 10. Ecology ...... 52 10.1. Energy Efficiency ...... 52 10.2. Greenery ...... 53 11. Sociology ...... 54 12. Economy ...... 55 12.1. Economic strategy...... 55 12.2. Development Strategy and related investment risks...... 56 12.3. Overview of Floor Areas ...... 56 12.4. Residual Land Value Plot B and D...... 57 12.5. Overall economic feasibility...... 59

6 12.6. Financing ...... 60 13. Legal Framework ...... 62 13.1. Building restrictions by Joint Spatial Planning Law ...... 62 13.2. New Legally Binding Building Plans (Bebauungspläne) ...... 63 13.3. Urban Development Contract ...... 64 14. Project management ...... 65 14.1. Stakeholder Management ...... 65 14.2. Risk Analysis ...... 66 14.3. Milestones ...... 67 15. Project conclusion ...... 69 Bibliography ...... 70 Table of Figures ...... 75 List of Tables ...... 77 Appendices ...... 78 Appendix 1: ...... 78 Appendix 2 ...... 78 Appendix 3 ...... 78 Appendix 4 ...... 80 Appendix 5 ...... 81 Appendix 6 ...... 85 Appendix 7 ...... 86

7 Terms and Abbreviations Term or Abbreviation Meaning Macro Scope of Berlin Meso Scope of Schönefeld Micro Scope of Waßmannsdorf Startup A newly started business Startup Accelerator A business designed to help newly started businesses become successful Green Technologies Ecological sustainable technologies like renewable energies. S-Bahn City train in Berlin Energy Farming Use of vacant farm land to produce renewable energy. TUB UD Technische Universität Berlin, Zentralinstitut El Gouna, Department of Urban Development HTW ConRem Hochschule für Technik und Wirtschaft Berlin, Construction and Real Estate Management

8 1. Note of the Editors

The authors of this report are students in the Master of Science Program in Urban Development at the Technische Universität Berlin, Zentralinstitut El Gouna (TUB UD) and students in the Master of Science Program in Construction and Real Estate Management at the Hochschule für Technik und Wirtschaft Berlin (HTW ConRem). The assignment was part of the ID02 Module in the curriculum of TUB UD, and Case Study 3 – International Business in the curriculum of HTW ConRem. In this module and case study, the students are requested to set up a development strategy and feasibility study for an urban renewal site. For this project, an informal cooperation was established between the Urban Development Masters’ program at TUB UD and the Masters’ program at HTW ConRem. Coordination and teaching activities where administered by research associates of TUB UD under the supervision of Prof. Dr. Rudolf Schäfer. For the duration of the project, the research associates at TUB where contracted by HTW ConRem as guest lecturers. The project ran from April 2018 to July 2018. In total, 62 Students in 12 teams participated in the project.

In the summer semester of 2018, the assignment consisted of a development strategy and feasibility study for a site in the village of Waßmannsdorf in the municipality of Schönefeld, , . The plots on the site are owned by the public housing association Stadt und Land. Stadt und Land aims to develop the plots in the near future, and came to an agreement with TUB UD to set up a development strategy and feasibility study in the form of a study project of the students of TUB UD and HTW ConRem. In the assignment, Stadt und Land requested that the students seek to provide a significant share of housing in their development strategies and feasibility studies. Of that housing, at least 50% needed to be affordable housing (with a maximum rent level of EUR 6.50 / m² per month). The assignment consisted of site visits, research activities, presentations to the supervisors and the stakeholder, Stadt und Land, and a final report. The assignment assumes the completion of Berlin Brandenburg airport, which will bring jobs, public transportation, and new commercial activity to the area.

9 We would like to thank Prof. Dr. Nicole Riediger of HTW ConRem for her support in the coordination and organization of the cooperation as well as attendance and input at the students’ presentations she was able to attend.

Our special thanks go to Ms. Melanie Krafft of Stadt und Land Housing Association for providing the site and data, her attendance at the site visit and all project presentations as well as her continued enthusiasm for the project.

10 2. Executive Summary

Waßmannsdorf is proposed to become Schönefeld’s new residential area, with an emphasis on low carbon emissions and new green technologies. Waßmannsdorf will be able to serve both the Berlin and Schönefeld markets and act as bridge between them, since Waßmannsdorf is located on the border of Berlin and the new Berlin-Brandenburg airport (BER) in Schönefeld (BER Airport is assumed to be operating). This makes Waßmannsdorf very accessible by highways, bicycle paths, and S-Bahn (S-BahnBahn station assumed to be operating). There are unique opportunities to create local synergies in Waßmannsdorf which rationalize a focus on green and ecological technology: a large water treatment center, a recycling station, and available land for research and energy farming, since a vast amount of space is required to be effective in this field. This is not possible at competing research areas such as Technology Park. The green focus is further justified by national sustainability goals, and policies regarding new developments, and by the proximity to BER airport which has separate goals and measures regarding how green technology should be applied to the airport’s operations and the surrounding commercial areas. The project site is in the northern part of Waßmannsdorf, is owned by Stadt und Land, should be developed to influence all of Waßmannsdorf, as well as local synergies, and supply demand in neighboring areas. This concept suggests developing the site into a residential area with retail spaces, offices, bicycle paths, a park, and a startup center for accelerating ideas into businesses in the green technology sector. The housing demand emerges from the growing market in the southeast region of Berlin due to rising rental and sales prices in the city center, and a new workforce needed at BER airport and surrounding commercial areas. The residential housing will consist of 50% social housing and 50% free market housing, and will be constructed with energy saving materials to ensure it is energy efficient. A plot of land will be sold to commercial investors for the provision of retail and office space options on the site to supply the resident and S-BahnBahn commuter demand. Another plot of land will be sold to venture capitalists to construct a startup accelerator to facilitate new businesses in the green technology sector.

11 Bicycle paths in Berlin will be connected through Waßmannsdorf to Schönefeld’s growing bicycle lane network, increasing connectivity and reducing car dependency. The bicycle riders and residents will have the opportunity to relax and sit down in a bicycle friendly park built on land with building restrictions from the airport. The plots owned by Stadt und Land are located in an area under a zoning regime that is restricted to residential use (Planungszone Siedlungsbegrenzung). However, exemption from the zoning regulations can be obtained if certain conditions are met. The proposed uses all meet the general public interest, provide sustainable land value development and adhere to the general development objectives of the northern edge of Waßmannsdorf; to create a center which can sustain itself, and not be completely dependent on the BER airport. The plots of land for the retail spaces and startup accelerator will be sold to investors, after B-plan is approved, for a total of 13 million EUR. The capital of 13 million will be used to acquire a loan of 49 million EUR needed for construction of the housing projects. The housing projects will have a gross yield of 2.6% for social housing, and 4.3% for free market according to own analysis and calculations.

12 3. Site Analysis

The area of the site is 8 hectares (19.76 acres) and is located in a village named Waßmannsdorf in Schönefeld Municipality, Brandenburg, Germany. Out of the total area of 8 hectares, 4.4 hectares are currently farmland/grass, 1.4 hectares consist of housing, 2.1 hectares are used as a commercial/light industrial zone, and a triangular area of 0.5 hectares has no use.

Figure 1 Flächennutzungsplan. Project site outlined with dotted line.

3.1. Demography Survey and site visits revealed that there were two main demographic groups within of the current population of Waßmannsdorf. Polish and German workers between the age of 30 to 40, and retired German couples and singles of 60 to 80 years of age.

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Figure 2 Own graph of Waßmannsdorf's population source: Gemeinde Schönefeld, 2018

The population of Waßmannsdorf was 788 in 2017. The population of Waßmannsdorf remained low after the reunification of Berlin in 1989. The population increased rapidly from 1992 to 1993 and peaked in 1996. One of the factors behind this rapid increase was the expansion and upgrade of the wastewater treatment plant in the village, which began in 1989 (Gemeinde Schönefeld, 2018). Another reason may be the establishment of Flughafen Berlin Brandenburg GmBH (FBB), which took over operations at Schönefeld Airport in 1991 (Gemeinde Schönefeld, 2018). There are ongoing new expansions and upgrades of the wastewater treatment plant and of the airport which historically indicates that the population will rise again.

3.2. Survey A representative portion of the residents on site were interviewed regarding their experiences with the site and their future demands for the area.

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Table 1 Summary of Survey

Outcomes of the survey

Figure 3 Represents the problem tree reflected by the requirements

The main requirements were: Better public transportation and connectivity to Berlin’s center, since there was only one public bus that came every hour and every two hours on weekends, a demand for more basic retail services because there was an absence of supermarkets, and they had to travel 4 to 5 kilometers to access their daily basic needs, and a recreational area They wanted to keep the rural flavor of the village, but some stated that favored to proximity to small businesses and having a small scale commercial area close to the village because it already existed, and they were used to living next to it.

15 The younger demographics (age 30-40) would not like to live there more than five years because they felt disconnected from Berlin, while the older demographics (age 60-80) all wanted to live on the site for more than five years because they enjoyed the tranquility of the village. The demographics had in common that they enjoyed bicycle riding and outdoor activities in their spare time, and that an advantage of the site was the quietness, but there was no outdoor recreational area, like a park, to take full advantage of it. A common leisure activity on the site was biking and walking, and the residents and visitors wanted a resting area like a park. Interviews also discovered that there was demand for more housing because there were several instances of up to six workers sharing one apartment, and persons subletting social housing apartments at a higher rent price than the rent roof of 6.5 EUR per square meter.

3.3. Commercial activity. Name What Possible synergies with project Website Klärwerk The wastewater treatment There will be more jobs at the WWTP https://ww Waßmannsdor plant (WWTP) in which translates to a housing demand, w.wassma f Waßmannsdorf mainly serves and the new technologies will be needed nnsdorf.b Berlin, and it is currently being for the new treatment and recycling wb.de/ upgraded to be prepared for a upgrades. Irrigation to the project site future increasing population of could connect directly to the WWTP, and Berlin. The upgrade and the proximity from housing to the WWTP expansion of the WWTP will create research possibilities to started in 2017 and will be improve household water consumption. completed in 2024. The upgrade consists of more water storage, upgraded lines and water treatment, a new sludge treatment plant, a flocculation plant, and a sludge recycling plant. Tünke A family run scaffolding A Local scaffolding service which is more https://ww Gerüstbau business for all building sustainable to hire than other businesses w.geruest GmBH constructions, serving all of which would have to travel a longer bau- Berlin. distance. tuenke.de/

16 EBK Berliner A recycling company in the Using recycled building materials, might http://ebk- Kompostierun northern parts of cut costs if the quality is high enough. berlin.de/ gsgesellschaft Waßmannsdorf which Composting of refuse can produce a lot of specializes in composting, energy and a startup in the renewable construction material recycling, energy sector could use the composting and earth works. to harvest biogas. The company could also provide a local expert workforce for clearing building plots, demolition of existing buildings, and recycling the construction waste produced by the project.

Vakuplastic A 50-year-old family business No obvious synergies for the project, but Kunststoff with over thirteen employees local plastic production might be useful if GmBH producing plastic suction cups. communication is established.

Table 2 commercial activities in Waßmannsdorf which might be relevant for the project.

Communication should be established with the current commercial activity listed in the table above to promote synergies with the project to increase the efficiency and sustainability of the project.

3.4. Architecture The floor area ratio of the existing buildings in Waßmannsdorf is between 0.2 to 0.8. The plot coverage ranges from 20 percent to 40 percent which is common for the suburban region and for single family housing. Most residential buildings are built in a traditional style with a rural flavor, such as low rise with steep roofs, upright windows, folding shutters and individual gardens. The residential buildings ranged from single family houses, to town houses and multi- apartment buildings.

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Figure 4 Waßmannsdorf houses own photo

3.5. Legal Situation

3.5.1. Local Planning Law

Figure 5 Flächennutzungsplan. Project site outlined with dotted line

The preparatory land use plan (Flächennutzungsplan) shows for the site a mix of purely residential areas (WA) and commercial areas with limitations to noise and air pollution (GEe), and farmland/grass. There is no binding land use plan (Bebauungsplan) for the project site. This means that those parts of the project site which are already built up (partly residential, partly commercial buildings) follow the rules of section 34 chapters 1 and 2 Federal Building Code (BauGB). According to this rule, new buildings can only be permitted if they blend into the surrounding neighborhood with regard to land use and density. The other, not yet built-up parts of the project site follow the rule of section 35 chapters 1-4 Federal Building Code (BauGB. According to this rule, new buildings can only be permitted if they are mentioned in the lists of section 35 BauGB. Text of sections 34, and 35 are available in appendix 3.

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3.5.2. Joint Spatial Planning Law of Berlin and Brandenburg According to the obligatory objective (beachtenspflichtiges Ziel) number 5 (Z5) on page 8 of the Joint Development Plan for the Airport Region (Gemeinsamer Landesentwicklingsplan Flughafenstandortentwicklung-LEP FS) of 30th May 2006, the entire project area is part of “Planungszone Siedlungsbegrenzung“(see appendix 1). This implies that the designation of new residential areas is allowed only to an extremely restrictive extent. Waßmannsdorf is a village located in the municipality of Schönefeld which is supposed to complement and supplement surrounding areas with centralized facilities (Mittelzentrum in Funktionsergänzung), and it is also supposed to be an agglomeration of developments surrounding connecting nodes, such as the S-Bahn, in the Berlin public transportation and road network (Landesplanungsabteilung Berlin-Brandenburg, 2002).

Figure 6 map of Zentrale Orte in Brandenburg, Red dot marks project site (Landesplanungsabteilung Berlin- Brandenburg, 2002)

19 3.5.3. Side Law There are also limitations from the BER airport to the project site. Residential units are not allowed to be constructed east of the current residential zone on the project site because of the reach of noise pollution from the new airport.

Figure 7 Flächennutzungsplan with project site outlined. The brown line signifies residential restriction, and the purple line shows the reach of the noise pollution from the Airport.

Figure 8 map of noise pollution impacts from BER airport. Red dot is project site (Ziegert and Knight Frank, 2018).

20 4. Market Analysis

4.1. Housing Demand.

4.1.1. Macro (Berlin) Berlin was the city with the highest residential population in Germany with 3.7 million in 2016. The residential population is expected to increase by 7.5% between 2015 and 2030, which will result in a total of around four million (Berlin Hyp & CBRE, 2018).

Figure 9 shows population growth in Berlin (Ziegert and Knight Frank, 2018)

The median square meter sales price for apartments increased by 12.7% from 2016 to 2017, and the average prices ranged from 2,185 EUR in to 4,688 EUR in . The rental price per square meter increased by 8.8% in total for Berlin, and the average prices ranged from 7.34 EUR in -H to 11.9 EUR in -K (Berlin Hyp & CBRE, 2018). One of the key characteristics of the Berlin housing market is scarcity, since the population is growing faster than the supply of residential units. JLL (2018) calculated the demand for new residential buildings to be around 25,000 in 2015, while the number of building permits was around 20,000 and completions below 10,000 indicating a strong demand for more residential units.

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Figure 10 shows rise of population vs residential units (Ziegert and Knight Frank , 2018).

Figure 11 shows housing supply and demand in Berlin (JLL, 2018).

22 Figure 12 development of prices (JLL, 2018)

Figure 13 shows calculated increase of demand and prices(Ziegert and Knight Frank , 2018)

Figure 14 indications for demands for residential segments (Ziegert and Knight Frank, 2018)

19,244 building permits for new apartments were issued in 2016, and 2.4 apartments were finished per 1,000 residents which totaled 8,800 apartments. The average density in Berlin was 4,119 per square kilometer (Berlin Hyp & CBRE, 2018). The high density has spurred a demand for micro apartments in Berlin and a growing suburban market (Ziegert and Knight Frank, 2018). During 2016, the population increased by 60,000, which translated to an increase of 48,800 in the workforce, an increase of 2.6% from the year before. The unemployment rate fell below 10% for the first time in decades to 9.8% (Berlin Hyp & CBRE, 2018). Migration is a large portion of the population increase, and 95% of the migration was of people under 30 years of age in 2016. While the population is getting younger, single person households are increasing. They were the majority household type, at 55% of the market in 2016. Ten years ago, single person households accounted for only 2%. 83% of all households in Berlin were one or two person households. The household income also increased by over 20% since 2006, increasing the purchasing power vs. rental cost per capita, allowing single persons to rent whole apartments for themselves (IBB, 2016).

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Figure 15 shows percentage of household type for renter vs. Owner (Ziegert and Knight Frank, 2018)

40% of all Berlin households are entitled to access social housing funds (Malter, 2017). The Red-Red-Green senate has created a mandate that public development companies (like Stadt und Land) construct at least 50% social housing of their developments (JLL, 2018). According to a study conducted by Hans Bockler foundation (2018), there is a shortfall of 310,000 single person apartments in Berlin as of April, 2018.

4.1.2. Meso (Schönefeld Municipality) Berlin’s residential market is growing rapidly in the south east region. -Köpenick is the section of Berlin with the strongest growth in apartments in 2017, and this trend continues into the areas surrounding the new BER Airport in Schönefeld. Six projects with 900 apartments were planned in Altglienicke, up to 1,000 apartments are planned in Bayangol park, 1,400 apartments are being constructed for students and scientists in Adlershof, and in Amrosenanger 14 townhouses and 171 apartments are being constructed. The areas have large land reserves making it unnecessary to build tall buildings (Ziegert and Knight Frank, 2018). Areas like , which is close to the project site, but just inside the city limits of Berlin, are dominated by free-standing and townhouses, and the purchasing power is above Berlin average, although the rent is lower. The average cost of an apartment rental is only 24% of the household purchasing power compared to over 30% in the north of Neukölln. The south of , closer to Schönefeld airport and the new airport, had an even more favorable ratio (Berlin Hyp & CBRE, 2018).

24 Proximity to an airport is associated with moderate rents and housing for the workers at the airport, but studies revealed that property values increase in areas surrounding airports in German-speaking countries. Frankfurt and Zurich both showed increased property values in the immediate surrounding of the airport due to the fact that career groups like managers, consultants and engineers who were frequent flyers to these regions rented or bought accommodations to save transportation time (Ziegert and Knight Frank, 2018). The new BER airport is expected to become one of the most influential economic factors in Berlin-Brandenburg, creating from 20,000 to 55,000 new jobs and an annual value creation up to 9 billion EUR. The earliest forecast expected 40,000 new jobs in retail, catering, and logistics according to the expansion of the 2040 Master Plan, but the latest forecast expects 17,000 new jobs in the immediate vicinity of the airport (Ziegert and Knight Frank, 2018).

4.1.3. Micro (Waßmannsdorf) The project site has two residential buildings. Interviews with the residents of these buildings revealed that there is not enough housing for the existing residential population. The internal demand for more housing on the site is driven by workers (up to six) sharing a two-bedroom apartment, and some residents subletting their social housing apartments at 10 EUR per square meter, which is higher than the reported and contractual rents of 6 to 7 EUR per square meter.

4.1.4. Current Market Prices On June 9th, 2018, the average rent per square meter was 11.76 EUR per square meter per month and sale price was 3,288 EUR per square meter, based on collection of data from available listings in Berlin and Brandenburg from Immowelt and Engl and Volkers’ websites. For further details please see Appendix 6. Rents from Stadt und Lands locations in the south east region of Berlin are up to 11.90 per square meter per month which indicates that these numbers are feasible (Stadt und Land, 2018).

25 4.2. Retail Demand

4.2.1. Macro The industry and logistics market is growing in Berlin due to an increase in demand for E-commerce and retail with companies such as Lidl, Amazon and Rewe occupying more and more land. Significant Areal Take Up in Berlin User Floor Area Transaction Type Location Lidl E-commerce 60.500 m² Rent (new construction) Southern conurbation Rieck Logistik 19.600 m² Rent (new construction) Treptow-Köpenick Gruppe Bringmeister 15.400 m² Rent (new construction) Southern conurbation Fiege Logistik 13.850 m² Rent (existing building) Southern conurbation Amazon 13.700 m² Rent (new construction) Table 3 significant turnover of rental spaces in the industry market in 2016 (Engel & Völkers, 2017)

According to Engel & Völkers (2017), there was a total take-up of 402,000 square meters by industry companies in and surrounding Berlin in 2016. The total land take-up was expected to increase to 450,000 square meters in 2017. JLL (2018) stated that the space take-up for industries in Berlin was 420,000 in 2017 which was the second highest in ten years, and a slight increase from the year before. A BNP Paribas Real Estate (2018) report calculated the land take-up for logistics and warehouses in 2017 to 453,000 square meter and wholesale/retail accounted for 48% followed by manufacturing at 25%. Engel & Volkers (2017) calculated the trade sector as the highest demand in the industry sector with around 38% take up, but the transportation logistics is a close second taking up 34%.JLL (2018) stated that retailers accounted for 53% in 2016, but only 35% in 2017.

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Figure 16 Industry Market size according to several sources

Figure 17 shows market segments in industry source JLL (2018) and BNP Paribas (2018)

The three sources confirm that the trade sector (retail and warehouse) had the highest demand in the industry sector with the highest land take-up, followed by transportation (distribution and logistics). The demand for industry locations inside Berlin exceeds the supply, and because over 30% of the industries take up more than 10,000 square meters each, a lot of the industries feeding Berlin are outside Berlin (Engel & Volkers, 2017). The demand inside Berlin has low prime yield of 3.2% for retail, and 90% of the companies rent their location, which makes retail a safe and profitable investment (Colliers, 2018).

27 4.2.2. Meso 31% of the total take up from industries are in “Umland Süd” which is south of Berlin. This area includes the project site. The industries are here because there is more space for the larger industries (Engel & Volkers, 2017). According to JLL (2018), almost 40% of the take-up from 2017 was in the southern and western peripheral locations which includes the project site.

4.2.3. Micro Site visits revealed that there were some light industries, but no supermarket or retail options in Waßmannsdorf. The closest supermarket was about five kilometers away, and the car was the preferred mode of transportation to and from this supermarket. The lack of retail is assumed to be linked to the low population of the area, but with a growing housing demand, retail demand would rise synchronously.

4.2.4. Current Market Prices On June 9th 2018, the average rent per square meter was 15.9 EUR and sales price per square meter was 3,208 EUR for specific commercial locations for offices and supermarkets, based on collection of data from available listings in Berlin and Brandenburg from Immowelt and Engl and Volkers’ websites (for further details please see Appendix 6).

4.3. Office Demand

4.3.1. Macro The total take-up of office space in Berlin in 2017 was 937,000 square meters and 2018 was expected to surpass this number. The square meter take-up of office spaces in Berlin has increased by 11.5% so far in 2018 compared to the same time last year. The vacancy rate by the first quarter of 2018 was 1.8%, and vacancy declined by 36.5% from 2017 to 2018. The rental price was under 14 EUR per square meter per month in 2014, and increased by 23% to 20 EUR in 2017. The rent price is expected to increase further, indicating a strong demand. The top industries were: 16% public services, associates, and social facilities, 5% consulting, and 14% tourism and traffic (Colliers, 2018).

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Figure 18 increase in average rent for office space in Berlin. Figure 11 shows increase in land take-up from 2016 to 2018. (Colliers, 2018)

4.3.2. Meso There are some offices and business centers in the center of Schönefeld which are also listed on Schönefeld municipality’s webpage, and there will be a growing demand for office spaces for the airport-related companies due to proximity to the airport, and new commercial zones would be beneficial for small businesses and startups looking to capitalize on the increased commercial activity surrounding the BER Airport. The average rent for office space in Schönefeld is around 13 EUR based on available listings found on Immowelt and Engel and Volkers webpages. One of the reasons the rental price is so low compared to Berlin is assumed to be because there is no direct access to the public transportation system to reach the city center of Berlin. The closest S-BahnBahn station is at the Schönefeld airport which is 20 minutes’ walk away.

4.3.3. Micro: There is no office space in Waßmannsdorf, but the new S-BahnBahn station will make commuting from the city possible, and increase the demand for low cost office spaces. The S-BahnBahn station is 400 meters away from the project site, making the site a suitable location.

4.4. Startup Demand

4.4.1. Macro Booming Berlin (2016) defines a startup as a business that is not older than five years, has independent management, and has a business model which could not work without internet.

29 There has been a large increase in the number of startups in Berlin in the last six years. In 2012, only 270 startups were registered, while in 2015, 620 startups were registered. The workforce increased from 6,700 to 13,200 in these years. The average number of employees in a Berlin startup is 22, but 78% of all startups have fewer than 22 employees. Only 9% of the startups have more than 51 employees (Booming Berlin, 2016). Berlin is a great location for startups since Berlin offers the largest number of students in higher education in Germany which produces an affordable and up to date labor force, and because of the high percentage of foreigners compared to the rest of Germany (16.5% compared to 8.9%). Non-Germans make up 49% of the workforce in these startups which is more diverse than Silicon Valley’s workforce at 45%. Non-German employees are usually sourced by startups. Another reason for the flourishing startup scene in Berlin is the relatively low rent compared to other European capitals (Booming Berlin, 2016). Living expenses in Berlin are still low compared to other European cities (Berlin was ranked 106th most expensive city in the world by Mercer in 2015).

Figure 19 compares square meter cost in cities across the world source: (Ziegert and Knight Frank, 2018).

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Figure 13 shows numbers related to startups in Berlin. source: (Ziegert and Knight Frank, 2018)

According to Booming Berlin (2016), Germany’s growth in startups in 2015 was larger than UK, Sweden, France and other European tech regions, and startups would create 100,000 new jobs by 2020. and contain pockets of startups due to previously affordable affordable rents, but the saturation of startups in these areas is driving the rents up, and startups will likely have to leave central locations of Berlin for lower cost locations in peripheral zones of Berlin.

Figure 20 market share of different sectors of startups Berlin (Booming Berlin, 2016)

Services takes up the largest market share of startups in Berlin.

31 4.4.2. Meso The new BER airport has created a market for startups related to travel, leisure, and green technologies. International investors have invested in startups such as indoor skydiving and conference centers which are located in the commercial zones of the areas surrounding the airport. Green services reducing the carbon footprint of both the development and operating of the new airport have been demanded by the board of management at the BER airport which has set environmental and climate protection as one of their key strategic goals in the development of the new airport according to their official webpage (FBB, 2018) The municipality of Wildau is a source of tech workers because there is a technical college which hosts 4,000 students out of a population of 10,000. There is also a growing number of tech jobs in the area due to this college (Ziegert and Knight Frank, 2018).

4.4.3. Micro There are currently no startups in Waßmannsdorf, but the proximity to BER airport and new commercial zones and a new S-BahnBahn station connecting the site to city center will make Waßmannsdorf a suitable location for startups.

4.5. Bicycle lanes and resting area.

4.5.1. Macro 13% of all traffic in Berlin in 2010 was the 500,000 daily bicycle riders (Otto, 2011) on Berlin’s over 620 km of cycle paths, utilized by both residents and tourists alike (Senate Department for Urban Development, 2018). A large portion of residents in Berlin do not own a car and rely on public transportation or bicycles for mobility within the city. The cycle paths are used for transportation to work, for leisure, and for exercise. There are several companies offering bicycle tours of Berlin for groups of tourists, and the cycle paths make it possible to experience all of Berlin’s tourist attractions within a weekend stay. In addition, there are many companies offering bike sharing possibilities, with bikes easily rented through a smart phone app and able to be used all over Berlin. One of the most important cycle paths is The Trail (Mauerradweg). The Berlin Wall Trail is a 160-kilometre-long trail completed in 2006 by the Government. The trail follows the path of the Berlin wall and loops around . There are several historic sites on the trail, and information in several languages at these sites catering to

32 tourists. Sections of the trail are also used by residents of Berlin to navigate around the city. There are fourteen different sections and the start and finish of these sections are all accessible by public transportation. The Berlin Wall Trail creates the possibility for tourists and visitors to access the municipality of Schönefeld.

4.5.2. Meso Many cycle paths have been built in Schönefeld in recent years due to demand from workers who want to bike to work, leisure sportsmen, tourists, and aircraft spotters and photographers. Mayor of Schönefeld, Dr. Udo Haase, said “we still want to build many bicycle paths” on December 20th 2017 after the inauguration of a new cycle path from Kiekebusch to RotBerg. Some residents and politicians in Schönefeld are not well disposed to the expanding bicycle path network. The cycle path from Kiekebusch to Rotberg took a lot of promotion because some of the residents who owned land that would be affected did not want to sell of their land, and Sabine Henck of the CDU (Politician in Schönefeld) took the residents’ side and said it would only serve tourism purposes. The bicycle path was built after several discussions with the private landowners, and the landowners agreed it served a purpose beyond tourism. The next bicycle path project consists of a path from the old Schönefeld terminal building to the new BER Terminal where guided cycle tours are currently provided at the BER Airport for people who are curious regarding the development of the new airport. This bicycle path, and the one between Kiekebusch and Rotberg, will be part of the Airport loop. There has been a focus on developing a cycle path around the Airport in recent years. The municipality of Schönefeld wants the cycle path to be a unique attraction (Bischoff, 2018). The Airport Loop would connect many existing cycle paths, but it does not have a clear connection to Berlin.

4.5.3. Micro Waßmannsdorf is located between Schönefeld’s airport loop, and Berlin’s Mauerradweg. The new S-BahnBahn station makes it easier for people in the city center who want to ride their bicycles to Schönefeld to access it and a bicycle path from the new S- BahnBahn station to Selchow was built to increase accessibility from Berlin’s public transport network to Schönefeld.

33 Site visits revealed that there are many visitors on bicycles who travel through Waßmannsdorf, either from Berlin or Schönefeld, without using the S-BahnBahn, but there were no proper bicycle lanes connecting Berlin to Schönefeld in Waßmannsdorf. The survey conclusion revealed a demand for adequate rest areas for visitors on bicycles to Waßmannsdorf. The existing residents expressed a demand for a leisure area, and the new S-BahnBahn station is in Waßmannsdorf making it a suitable connecting node for cycle paths in Berlin and Schönefeld.

Figure 21 Land use and existing cycle paths, red dot shows project site Source: Team A3

34 5. Stakeholder Analysis

Below are the results of stakeholder analysis for our project:

Internal/ Knowledge Possible Available Power of Stakeholders Position External Level alliances resource influence

Stadt und land Internal High Supporter Institutions Land High

Dahme- Spreewald Moderate Legislative External High Local council Medium (District supporter power administrator)

Schönefeld (Municipality Moderate Client, district Legislative External High High mayor/local supporter administrator power council)

Federal aviation Moderate Mayor, district Legislative External High High office opponent administrator power

Client, Internal/Exter Future Tenants Medium Neutral investors, ___ Medium nal mayor

Client, Workers at Internal Low Neutral investors, ___ Low commercial area mayor

Existing Moderate Internal Medium Client ___ Medium residents opponent

Table 4 Showing stakeholder analysis part A

The power of impact is high for Stadt und Land, municipality mayor and the Federal Aviation office, stakeholders with a high level of knowledge pertaining to the development. The legislative power is medium for the district administrator and power of impact is low when it comes to tenants or workers at the commercial area.

35 Stakeholders Explanation Actions/Activities Motivation/ Demand Fears of power Interests

Stadt und land Owner of Develop project Benefit/ profit To develop a Negative land profitable project return on where 50% net investment floor area is social housing.

Dahme- Overlooks Spatial planning ______Spreewald the overall (District development administrator)

Schönefeld Has to local roads, town economic a feasible project not being re- (Municipality approve the planning, sewage, development, which is good for elected mayor/local project, can recreational areas, tourism, local the municipality council) halt the social and youth public project by welfare transport, issuing a cultural new detailed activities plan

Federal aviation Legal power approval for new safety No interference More delays office backed by developments standards. with airport in airport governmenta around the airport, Knowing being fully l bodies in certification, about building operational Brandenburg supervisory functions heights and and Berlin. land use. Stop any development with legal action

Future Tenants Have tenant be part of a quality affordable Increase in rights community, creating infrastructure, housing, cost of living job opportunities, supporting community once airport contribute to local facilities, facilities, better is fully economy public transport operational

36 Workers at few and day jobs affordable community Losing their commercial area replaceable. housing facilities, better jobs or public transport being replaced

Existing objection to currently residing affordable maintaining Being residents/village move to housing public interests replaced council another location

Table 5 Showing stakeholder analysis part B

Stadt und Land has the highest interest and power among stakeholders in this project because they own the site and want to develop it. The existing residents have a high interest because they are directly affected since they live on or surrounding the site being developed. Their direct power levels are low, but their indirect power over the municipality by representing the public’s interest is important for the feasibility of the project. BER Airport has high power regarding this project because the project has to be adapted to the airport’s impacts on the site. The airport will not change to benefit this small project in Waßmannsdorf. The mayor and the local council have the largest impact on the project because the council has to issue permits and approve new land uses in a detailed plan for the project. The municipality should be part of the planning process to ensure that the project will not contradict the overall planning goals of the municipality. Future residents have low interest and power in the project, and it is this project’s aim to increase interest among future residents through marketing and creating a clear identity for the site.

37

Figure 22 Showing the summary of Stakeholder Analysis Source: Team A3

38 6. Conclusion market and site analysis

Waßmannsdorf, situated between Berlin and the BER Airport, has a unique location which should be developed to benefit both Berlin and Schönefeld Municipality. The S-BahnBahn station connects Waßmannsdorf to Berlin, which reduces car dependency, and increases access to the Berlin market. The project should provide affordable housing to supply demands externally from Berlin, with a growing south east region, and generally inflated rental prices. The internal housing demands should also be met by providing more affordable housing, so workers no longer need to share apartments. The increase of residential units will likely create an increased demand for housing needs like retail and office spaces. The existing demand for a supermarket should be met, which will reduce the dependency on cars to purchase groceries. The new BER airport, new commercial zones, local businesses, access to S-BahnBahn station and the amount of vacant farm land surrounding the site creates considerable suitability for businesses in the renewable and green tech sector. The concept should provide incentive to startups to choose Waßmannsdorf for research and development in the green sector. Berlin’s startup scene should be linked to the project site by showing what the unique location of Waßmannsdorf can provide to startups by differentiating from the competition.

39 7. Concept

The concept is developed on the basis of the market, site and stakeholder analysis after analyzing demands, restrictions and possibilities. The concept consists of four programs: providing energy efficient housing, providing housing needs, making Waßmannsdorf greener and more accessible, and a green technology startup accelerator. The focus is on sustainability, especially ecological aspects.

7.1. Vision The vision for this proposed project is “An eco-friendly rural center”. The vision highlights the focus on making Waßmannsdorf a new residential area in Schönefeld, and on the green technologies and sustainable synergy opportunities. The vision for the development aims to create an identity of eco-friendliness, low carbon emission, and centrality. This identity can be used in marketing to future residents, and to convince the local and village council of the project. All aspects of the concept can be traced back to this vision.

7.2. Concept Benchmark Rieselfeld in Freiburg, Germany is the benchmark for Waßmannsdorf as a whole. Rieselfeld is an existing “eco-town” with 9,000 residents, a social mix with 20% social housing, 40% rented apartments, and 40% ownership. Rieselfeld’s car dependency is significantly reduced by a good network of bicycle lanes and very expensive parking. The town has a low carbon footprint with energy efficient housing, solar and biogas for energy, and their own laws which are stricter than national laws to reduce the carbon footprint further (Purvis, 2008). The programs in this concept aim to increase the population, reduce the carbon footprint, reduced car dependency, and create a residential social mix in energy efficient housing.

40

Figure 23 shows Rieselfeld, Germany. Source: Meyer, 2012

41 8. Programs

8.1. Provide Energy Efficient Housing

Figure 24 building design of housing Source: Team A3 The provision of energy efficient housing will meet the demand for affordable housing and reduce the carbon footprint of the development. The total housing is divided into 50% social housing and 50% free market housing. Synergies with the local material recycling station and local scaffolding businesses in Waßmannsdorf should be established to reduce costs and increase the local workforce. The buildings should have a low energy demand in summer and in winter. The energy efficiency of the structures is covered in chapter 10 on ecological impacts. The target groups for the housing are: workers (1-2 persons per apartment), young families (3-4 persons per apartment) and low-income workers or families (1-4 persons per apartment). Based on German standards of affordable and social housing, calculations have been made for the required apartment size. Areas of 42 to 50 square meters for 1 bedroom apartments, 65 square meters for 2 bedrooms, 104 square meters for 3 bedrooms, and 115 square meters for 4 bedrooms. A total of 413 flats are proposed, of which 130 are 1 bedroom, 128 are 2 bedrooms, 82 are 3 bedrooms and 73 are 4 bedroom flats. The possible new inhabitants in all these flats would be 923 in total.

42

Figure 25 apartment sizes and design Source: Team A3

The main strengths of this program are provision of housing for local workforce and fulfilling regional housing demand. A Weakness is the limited income generated from social housing. The program would create a great opportunity for people to relocate from the ever increasing housing costs in Berlin, but still be connected to the city. The main threats are the residential restrictions in the B-plan and expansion of the BER airport, which might lead to more the land use restrictions due to noise pollution. Housing Benchmark:

Figure 26 example of Stadt und Land's typenhaus placement (Stadt und Land, 2018)

The architectural concept resembles a modular system of different segments which can be planned, stacked or combined in a variety of ways. Stadt und Land’s “Typenhaus” placement can adapt to almost any construction situation and can be planned with an east/west or a south/north oriented/corner module (Stadt und Land, 2018) The modular system should be constructed to increase the energy efficiency of the buildings, which is covered in chapter 10.1.

43 8.2. Provide Housing Needs

Figure 27 building location and design for housing needs Source: Team A3

This program deals with the provision of housing needs such as retail, supermarkets and office spaces for residents or commuters. Two commercial buildings will host at least one supermarket, second floor office spaces which can create synergies with program 4 (Green tech accelerator), and possibly general needs such as a local hairdresser, café, and home services. The S-Bahn station of Waßmannsdorf will create a retail demand for commuters who might work at the airport or surrounding commercial zones. The walking distance from the S-Bahn station of Waßmannsdorf to site will be reduced from 1.1 kilometers to 400 meters by proposing a pedestrian bridge crossing the rail line at the junction marked by a red circle in the figure below. This will further reduce dependency on cars to reach the station from the site and its surroundings. The S-Bahn station can be further used for marketing and retail purposes to serve residents and commuters.

44

Figure 28 distance from S-BahnBahn station using Google maps.

The main strengths of the housing needs program are that the nearest retail or commercial competitors are 5 kilometers away from the site and the strong demand for such services based on survey results. The weakness of the program is its dependency on increased population, since without an increased population opening of retail options is not feasible. The main opportunities are creating synergies with the S-Bahn station and Green tech accelerator, and visitors coming to the site and village. A threat for the program could come from large low-cost competitors such as Lidl, and the office park in Schönefeld center.

8.3. Make Waßmannsdorf More Green

Figure 29 park location Source: Team A3

45 This program focuses on making the village greener by the provision of bicycle paths and a bicycle friendly park with rest areas and benches. The park is proposed in plot C, where no residential buildings can be constructed due to noise pollution from the airport. The program is aimed at creating synergies with visitors using retail options and the need for irrigation at the park could be fulfilled by the water from wastewater treatment plant in Waßmannsdorf. Two proposed bicycle paths are suggested to link Berlin’s wall trail to Schönefeld’s airport loop by passing through the project site. This will further reduced car dependency on site and increase the flow of visitors to the site with the additional value of the bicycle friendly park and retail options.

Figure 30 proposed bicycle paths. Red dot marks the project site. Source: Team A3

The program’s strength is to increase and improve the accessibility to Waßmannsdorf and the site in particular which is a demand based on survey results. A major weakness would be the added expense which could be compensated by the opportunity to provide retail options for the visitors accessing the site. Possible threats are the fact that private land owners outside the project site might affected by the construction of bicycle paths, and increased visitors.

46 8.4. Green Tech Accelerator

Figure 31 green tech accelerator location

The last program is a green tech accelerator which aims at accelerating startups in the green sector. A startup accelerator is a service for startups to access funds, technology, office space, and knowledge to accelerate the business model and increase the success rate of startups in certain sectors. Possible synergy options with the wastewater plant in the village, new commercial zones and the BER airport. The goal of the accelerator is to create sustainable solutions to achieve environmental protection goals stated by the United Nations, the German national government, and development goals of BER airport. The nearest competitor is Adlershof technology park which specializes in research and provision of office spaces, located 8.8 kilometers from the site. The Green tech accelerator is differentiated from the competition due to access to the listed local synergies with water and recyclables, vacant land which can be used for energy farming, new commercial zones, and BER airport. This proximity will attract the startups in the green sector to Waßmannsdorf rather than Adlershof.

47

Figure 32 distance to competition using Google Maps. Red Dot is project site.

The strengths are attracting investors and the provision of options different from the nearest competitor. The weakness is the dependency on the local synergies and BER airport development for success. The program will aid the national goal of “Energiewende” which involves Germany using renewable energy sources to become independent from coal and nuclear power sources in the future, creating a great opportunity for investments and governmental funding.

Accelerator benchmark E.On’s :agile is a startup accelerator which provides funding, office space, training, and partners. They focus on the energy sector and have helped accelerate companies which improve the technology in wind parks, for batteries, power supply, and charging to name a few. They provide office space in Dusseldorf, Essen and Berlin. (Eon, 2018). They have 14 investors providing the funding and training for the startups.

Figure 33 e.on accelerator 2018 (Eon, 2018)

48 9. Urban design

9.1. Zoning The project site will be divided into four main zones: Residential, Commercial, Industrial, and Greenery. Plot A is the residential zone, and it contains the social and market housing and will be located in the west part. The commercial zone, which will contain retail and office space, is Plot B. The industrial zone is plot D, and will contain the green tech accelerator. The greenery zone will consist of the eco-friendly bicycle park in plot C and the green landscape in the middle of the other plots as shown on the figure below.

Figure 34 zoning of project site Source: Team A3

9.2. Master Plan The master plan shows the proposed location of the different buildings and landscapes on the project site. The character of the surrounding buildings regarding materials, floor area ratio, height, and plot cover has been taken into account to maintain as much of the rural flavor of Waßmannsdorf as possible. The residential buildings and commercial buildings will be two stories tall while the green tech accelerator will be built horizontally with one floor level to enhance the movement in the site.

49

Figure 35 master plan of project Source: Team A3

9.3. Accessibility The project site will be accessible from both Dorfstraße and Rudowerstraße. There will be four main entrances to the site: Two entrances for the residential zone, one entrance for the retail area, and the last entrance will be for the green tech accelerator located on the northern part of the site. See figure 33. Bicycle paths connecting the bicycle friendly park with the Berlin Mauer trail and Schönefeld’s airport loop, and a walkway from the S-Bahn station will also increase the accessibility to the site as presented in chapter 8.2 and 8.3.

Figure 36 Accessibility map Source: Team A3

50 9.4. Material Guideline Local materials will be used to maintain the atmosphere and rural flavor of the village. Energy efficient materials will be used for the residential structures to increase the energy efficiency of the structure and also reduce possible noise pollution from the airport. Recyclable materials should be used wherever feasible, and consultation with the local construction material recycler in Waßmannsdorf is important for this to be possible. The most feasible recyclable materials, such as wood, clay, cement, and steel can be used for external and internal walls, ceiling and roofs according to energy plus houses designed by studio GRAFT in cooperation with BuroHappold (Inhabitat, 2018)

Figure 37 Energy plus houses Berlin source: inhabitat 2016

9.5. Synergies The design of the buildings aims to retain the rural flavor and create an identity for the area. The green park is designed not only for leisure and recreational purposes, but also as a node that connects the existing bicycle paths from Berlin and Brandenburg. The architectural form of the residential area is a dynamic zigzag formation of buildings with the same heights in order to communicate with the existing residential buildings. The openness of the commercial and retail zone enhances the interaction with the surroundings.

51 Figure 38 Synergies created with the surrounding Source: Team A3

10. Ecology

10.1. Energy Efficiency Ecological considerations were considered while developing the idea. The zigzag formation of the buildings creates the possibility to have more south facing windows, which would reduce heating costs significantly in the winter, and the L-shape of most of the built up area will channel cool northern winds during the summer to create natural cooling.

Figure 39 Climate consideration map Source: Team A3

52 10.2. Greenery In order to retain the rural flavor of Waßmannsdorf, the green areas are designed to be in the same harmony with the existing trees, plants and shrubs. Therefore, local plants will be used to fit into the village’s climate and atmosphere. Some examples of those plants are illustrated in table 6.

Figure 40 Greenery map Source: Team A3

Table 6 proposed plants (Federal ministry of food and agriculture, 2015)

53 11. Sociology

Doubling the population of Waßmannsdorf will have large sociological impact, and a new identity should be formed to mitigate this impact. The focus of green tech and energy efficiency in this project will create an association with ecological sustainability and this association should be used to form the new identity of Waßmannsdorf. The identity this project suggests for Waßmannsdorf is the vision of the project site as “an eco-friendly rural center”. The identity clearly states the goal of being ecologically sustainable and becoming a new residential center in the Schönefeld Municipality. The existing residents will be able identify with the new green identity through the local synergies with existing businesses and use of vacant farmland, and the new residents will identify through marketing of the site as energy efficient and ecologically oriented. The apartments will be mixed social and free market housing to decrease segregation and increase inclusion. The aim is to create a healthy social mix of the demography (Oliver, 2000). The services offered on the site, such as the green tech accelerator, will not de- concentrate Berlin services in Berlin, but instead will complement Berlin’s startup scene with the use of unique and local synergies and vacant land which is not available inside Berlin and at competing locations. The building designs and heights will be familiar to the area to maintain the rural flavor, since the local council and existing residents should not feel alienated and the sociological impacts should not be perceived as negative and destructive to the existing village, but rather as complementary and a continuation of perceived development in the area.

54 12. Economy

12.1. Economic strategy.

Figure 41 location of plots Source: Team A3

Increasing the inhabitants in the catchment area of the proposed retail functions on the site will contribute significantly to successfully attracting tenants and investors for the retail functions proposed on plot B and D. After the realization of the housing functions on plot A, the number of inhabitants of the village of Waßmannsdorf will increase with approximately 900 inhabitants to a total of 1500 inhabitants in the village directly. Together with the already existing potential in the catchment area around the village (see also chapter 4.2 and 8.2), criteria for the successful establishment of a rural-regional retail center can also be met (Table 7). Type Minimal Floor Area Shop in Inhabitants catchment Area m² Supermarket 1,200 5,000-10,000 Discounter 800 > 4,000 (Micro Market 70 1,500 – 3,000 Concepts) Kleinflächenkonzepte Table 7 minimal floor area and catchment area for retail Source: Ostertag and Eizenhöfer, 2011

Also, the green tech center will benefit from the availability of housing in the direct vicinity. Alongside site advantages such as the one stop S-Bahn connection to the international BER airport, the rural setting and availability of farmland for green-tech related experimental farming, the availability of housing on the site will be a convincing argument for green tech entrepreneurs to settle in Waßmannsdorf.

55 For the proposed retail and office functions on plots B and D it is essential, as well as very advantageous, that both the affordable and free market housing functions on plot A are secured prior to leasing and construction.

12.2. Development Strategy and related investment risks. The development and construction of the free market and affordable housing on plot A will require a substantial upfront equity investment by Stadt und Land Housing agency. This equity can be generated through the sales of plots B and D to commercial investors, prior to construction of the housing blocks on site A. The construction and leasing risks related to development of sites B and D are transferred to commercial investors, leaving Stadt und Land with the risks related to the development, construction and leasing of the housing functions on plot A. Since the construction and development of housing is a core activity of Stadt und Land, the financial risks involved are considered low and manageable. However, in order obtain the optimal price for the sale of plots B and D, Stadt und Land should secure the building use of retail and office on the sites prior to its sale. Once the municipality can issue building permits for retail and office use on the site, both plots can be sold to investors at current market prices (see also the chapter on project management). Finally, after a successful sale of plots B and D to commercial investors, the development and construction of plot A should commence with the affordable housing units. After completion, the development and construction can continue with the free market housing. This will enable Stadt und Land to further spread the investment risks.

12.3. Overview of Floor Areas As set out in chapter 8, the following total floor areas can be realized on plots A, B and D. These floor areas are used in calculations, as presented in the following chapters and appendix 5. Plot A (1) Plot A(2) Plot D Plot B Plot size 23,400.5 m² 23,400.5 m² 23,218.0 m² 8,492.0 m² Existing Building 0.0 m² 0.0 m² 600.0 m² 600.0 m² Sector Residential Residential Accelerator Retail Typology Affordable Free Market Co Working Shops Footprint Benchmark 9,360.0 m² 9,360.0 m² 4,643.0 m² 3,396.0 m² Number of Floors 2 2 2 2

56 Gross Floor Area 18,720.0 m² 18,720.0 m² 9,286.0 m² 6,792.0 m² Efficiency Benchmark 80% 80% 70% 70% Net Floor Area 14,976.0 m² 14,976.0 m² 6,500.2 m² 4,754.4 m² Table 8 Floor Areas used for calculations.

12.4. Residual Land Value Plot B and D. The average price for land with a commercial use sold in Schönefeld is between 150 €/m² and 1000 €/m² land (Immowelt, 2018). To assess the correct price for plots B and D, the land value of B and D are appraised according to a residual land value appraisal method for a ten-year investment window. In this method, a formal investment analysis of both functions for the period of the investment window is established. After completion of the property cash flows, the net present value of the subsequent ten years of investment is calculated at current investment yields that are obtained from the market. After subtracting the construction and development costs for both premises the residual land value of both functions is obtained. In the calculations (see appendix 5) the following assumptions for rent and investment yield have been considered: Site B and D Rents Investment yield Retail, Office 14 €/m² month 5,3 % Table 9 Assumptions for Rent and Yield Plot B and D. Source: Team A3

The assumptions for rent and investment yield are based on results for the site and market analysis, as presented in chapter 4.2. In the calculations (see appendix 5), the following assumptions for the cash flow statements were considered: Cash Flow Setting Site B Site D Annual Rent Increase 4.0% 4.5% Annual Vacancy expectation 1.8% 4.0% Operating Charges 20% 15% Maintenance & Repair p.a./ m² 1.5 € 1.0 € Renovation reservation / m² 5.0 € 8.0 € Consumer Price Index p.a. 1.5% 1.5% Table 10 Assumptions Cash Flow Statement plot B and D. Source: Team A3

57 The assumptions for the cash flow statement are based on generally accepted calculation parameters and market analysis, as presented in chapter 4.2. Responsibility for maintenance and repairs is shifted to the tenant. The development and construction costs considered in the calculation are structured according to the generally accepted DIN 276-1 norm: DIN Group Group Title Site A Site D Site B 210 Clearance 7.50 €/ m² 7.50 €/ m² 7.50 €/ m² 212 Demolition 50.00 €/ m² 50.00 €/ m² 50.00 €/ m² 220 Infrastructure 10.00 €/ m² 10.00 €/ m² 10.00 €/ m² 300+400 Building Costs 1,309 €/m² 1,636 €/m² 1,309 €/m² 500 External Works 31.97 €/ m² 89.99 €/ m² 31.97 €/ m² 730 Architects and Planners 15.0% 15.0% 15.0% 710 Project Administration 5.0% 5.0% 5.0% 719 Marketing 2.5% 2.5% 2.5% Table 11 Assumption Development and Construction Costs according to DIN 276-1. Source Team A3.

The assumptions for the development and construction costs are based on generally accepted calculation parameters and the building costs, as published by the Baukosteninformationszentrum BKI (Kalusche and Herke, 2016) multiplied by a building costs index for Berlin, as published by the BKI (Baupreisindex BKI) to the building costs valid for the first quarter of 2018. In the calculations (see appendix 5), the following assumptions for building efficiency have been considered: Plot A (Housing) Plot B (Retail) Plot D (Office) Building Efficiency 80% 70% 70% Table 12 Assumptions for building efficiency. Source Team A3

The building efficiency describes the percentage of net floor area in relation to the gross floor area. This relation expresses the difference between the floor areas that can generate income through renting and the floor areas that need to be constructed. Construction costs are calculated based on the gross floor areas, whereas rental income is based on net floor (lettable) areas. The building efficiency for the housing on plot A has been derived from the benchmarks presented in chapter 8. In commercially applications, general spaces such as collective reception desks, collective entrances and service areas are included. As these general and shared spaces cannot be clearly allocated to the floor space rented by a single tenant, the building efficiency was adjusted downwards to 70%.

58 Of the calculations mentioned above, the residual land value of Site B amounts to 9,020,890 € / 1,062 €/m2 and the residual land value of Site D amounts to 4,627,263 / 199 €/m². As both values are well in range of the current average land prices for commercial uses on the site a sales prices of 9.0 million EUR for the retail center on plot B and 4.6 million EUR for plot D can be regarded as feasible and in line with the current market conditions for these types of functions in Schönefeld / Waßmannsdorf.

12.5. Overall economic feasibility. In line with the assessment of the residual land value for plots B and D, an investment analysis for an investment window of 10 years for the development and management of the housing premises in plot A is established. Assuming an upfront sale after securing the land use for plots B and D at the appraised values as set out above, a total amount of 13.6 million EUR of equity will be available at start of the development and construction of the affordable and free market housing on plot A. At this stage of the feasibility study, no qualitative differentiation has been made between the construction costs for the affordable and free market housing on plot A. Considering the development and construction costs parameters, as well as the assumptions for building efficiency as set out in tables 11 and 12, the total development and construction costs for site A are estimated at 62 million EUR, to be realized in two consequent phases (first affordable and then free market housing). After completion of the subsequent housing phases, income from rent will be assumed for a period of 10 years according to following rent, yield and cash flow assumptions. Site B and D Rents Investment yield Housing free market 12 € / m² month 4.3% Housing affordable 6.50 € / m² month 2.6% Table 13 Assumptions rent and Yield Plot A.

The assumptions for rental and investment yields are based on results of the site and market analysis, as presented in chapter 4.2. At the end of the 10-year investment period, the exit value of the cash flow is set at the investment yield, as set out in above table. The effects of speculative yield compression or decompression throughout the investment window have not been considered.

59

Cash Flow Setting Site A Site A free affordable market Annual Rent Increase 1.5 3.0% Annual Vacancy expectation 2.0% 3.5 Operating Charges 10% 12% Maintenance & Repair p.a./ m² 2.50 € 2.50 € Renovation reservation / m² 2.00 € 3.00 € Consumer Price Index p.a. 1.5% 1.5% Table 14 Assumptions Cash Flow Statement plot A. Source: Team A3

Resulting from the above assumptions, the following property cash flows can be assumed (figure 41), resulting in a positive internal rate of return of 12.3% (property IRR).

. Figure 42 Graph showing cash flows Source: Team A3

12.6. Financing As shown in figure 41, construction and development will cause negative cash flows in the first two periods of investment. To cover these negative cash flows, external financing from banks or other institutions needs to be procured. The initial equity of 13.6 million EUR available at the beginning of the project represents 22% of the total required investment of 62 million EUR in the first two years. Given the fact that the development of the housing is split into two phases of 31 million EUR each, considering the positive housing demand, as set out in chapter 3, and given the high

60 credibility of Stadt und Land as a publically financed body, it is unlikely that it will not be possible to find a suitable loan from a bank or similar institution. The calculation of an equity IRR was not in the scope of this feasibility study, however as current bank interest rates in Germany have proven to be stable and low, it is not expected that the required financing of 48.4 millon EUR will cause a debt service that cannot be covered by sufficient income from operations.

61 13. Legal Framework

The current planning law status of the project site will not allow the realization of all sectors of the project for two reasons: • Building restrictions for residential land use, according to the Joint Spatial Planning Law and • a lack of legally binding buildings plans (Bebauungspläne) for the new residential area and the new mixed area.

13.1. Building restrictions by Joint Spatial Planning Law

The residential area provided in the project concept would not match the current conditions regarding the “Planungszone Siedlungsbegrenzung”, which means that the designation of new residential areas is allowed only to an extremely restrictive extent. The only way to reach an adequate legal situation for the project is to apply for a “Zielabweichung” according to Art.10 Landesplanungsvetrag Berlin und Brandenburg (see appendix 2). The application has to be addressed to the Gemeinsame Landesplanungsabteilung Berlin-Brandenburg in Potsdam. The chances of a successful application are not clear. Arguments for a “Zielabweichung” in the given case could include: • The area concerned is relatively small and located at the northern border of the “Siedlungsbegrenzungszone”. • The new residential area would be in the direct neighborhood of already existing legally guaranteed residential areas. • Together with the existing residential area, the new one would be an economic basis for the super market provided in the project concept. • Utilization of the S-Bahn station in close proximity to the project site for rural housing with decreased car dependency. • The area is part of “Tagschutzzone 2” (60 dba) according to “Lärmschutzbereich” (appendix 7). The new buildings would have to be equipped for passive noise protection like the existing buildings. • The development aim (goal) for the northern center of Waßmannsdorf, which contains the project site, is to create a center for Waßmannsdorf which will be functioning and meaningful after the opening of the BER airport (Gemeinde Schönefeld, 2018). The project achieves this goal by the proposed programs which will increase the population of Waßmannsdorf and turn it into a rural residential center with an eco-friendly identity and with new basic rights such as elementary school and youth and sports facilities.

62 13.2. New Legally Binding Building Plans (Bebauungspläne) A new legally binding building plan (Bebauungsplan) is necessary for the new residential area and the new mixed area. As a result, the existing preparatory plan (Flächennutzungsplan) must be modified. This can be done by “Parallelverfahren” according to section 8 chapter 2 of the Federal Building Code (BauGB). The municipality of Schönefeld is responsible for the new Bebauungspläne and the modification of the Flächennutzungsplan. A new Bebauungsplan for a residential area on the empty plot of farmland/field of grass will only be possible after the modification of the Building Restriction (see above 13.1) has been achieved by a successful Zielabweichungsverfahren. In that case, the new Bebauungsplan would provide a General Residential Area (Allgemeines Wohngebiet/WA) according to section 4 of the Federal Land Utilisation Ordinance (BauNVO). Floor Area Ratio (GFZ) is kept up to or below 0.8 from section 17 chapter 1 BauNVO.

The current residential zone on the site must be changed to a Mixed Use Area (Mischgebiet/MI) according to section 6 of BauNVO, because of the retail and office space proposed on this plot. The commercial land use area with limitations regarding noise and air pollution (eingeschränktes Gewerbegebiet/GEe), according to section 8 of BauNVO, can remain the same since the Green Tech Accelerator is within this sector.

Figure 43 Current land use Figure 44 Proposed land use

63 13.3. Urban Development Contract The urban development contract between the municipality of Schönefeld and Stadt und Land should, according to section 11 of BauGB, include the co-producing of the Bebauungspläne with the suggested land uses, and it should not affect the municipality’s responsibility for the statutory plan adoption procedure. The contract should ensure the supply of housing needs in regards to the housing supply and local community, and the responsibility of the costs incurred during the urban development, in accordance with Section 11 of BauGB. Stadt und Land is expected to bear most of the burden based on the level of interest of the project, especially regarding public infrastructure. Stadt und Land should pay for the infrastructure and not the existing residential owners because Stadt und Land is projected to benefit more from the additional infrastructure than the existing owners. Infrastructure costs are provided in Appendix 4.

64 14. Project management

Organization Chart

Figure 45 organization chart Source: Team A3

The organization chart shows that Stadt und Land will focus on the housing and the park and bicycle lanes, while the plots for retail and accelerator will be sold to different investors in those sectors. This will be done to ensure the high quality of the different land uses, and because Stadt und Land mainly develops housing, and not commercial or industrial premises.

14.1. Stakeholder Management The communication manager will have the responsibility to engage, empower, involve and communicate with the key stakeholders. Public participation by the existing residents is crucial, as established earlier in the site analysis and legal framework, in order to have B-plan approved. From October 1st 2018 to the end of the project in 2022, the residents will have the opportunity to attend monthly meetings with the various developers and representatives from the local council in order to co-initiate the ideas of the project, and create a sense of co-production with the public. The village council, also representing the existing residents, will have extra insight during the process with access to meetings between the developers and the administration of the municipality.

65 The existing residents will receive a mandate to halt construction if there are more than two thirds opposing the project. Surveys and fulfilling demand and interest in the project reduce the chances of the project being halted by the existing residents. Future residents will be involved in marketing by attracting them to the project with a clear identity as a new eco-friendly residential center. The local council and municipalities administration will also be involved from October 1st 2018, by co-creating and co-producing the project to ensure success. The airport authorities are involved during the pre-construction phase to make sure there are no limitations to the project the developers are unaware of.

14.2. Risk Analysis The most prominent risk of the project come from the residential restrictions of the Ziedlungsbegrensning, and the mitigation would be to prove the argument listed in chapter 13.1. More housing would mitigate the risk of a failing commercial development in Waßmannsdorf, since the commercial development of Waßmannsdorf has limitations regarding noise and pollution from the existing residential area, which limits the commercial activity to housing needs like retail and office spaces. The risk of the airport not opening would lead to lower demand for local workforce and commercial activity in the area, and this is mitigated by tailoring offers such as housing and green tech to the Berlin market to be able to function independently from the airport. The table below covers risks associated with applying the project to the site.

Table 15 risk analysis Source: Team A3

66 14.3. Milestones The first milestone will occur when the project is introduced to the municipality. This is an important step, since the local administration initial positive reaction is important to create a good environment for co-producing the project. The next milestone will be choosing a contractor for the housing part of the project. The B-plan and permits will be achieved within a year of co-producing and creating with the municipality and the contractor. With the permits, investors will be found for the plots being sold, and when the plots are sold to the investors, Stadt und Land will be able to use the received capital to loan the remaining money needed to start construction of the housing.

Figure 46 Pre-construction milestones Source: Team A3

The construction of the housing will be in two phases of a year each. Completion of the first phase will occur when the social housing and the relocation of the existing residents on the plots sold to investors are able to succeed. The retail/commercial investor finishes the housing needs buildings at the same time as the phase two and three of housing finishes. The relocation of existing businesses to surrounding commercial zones, and the venture investor finishing the accelerator happens parallel to the construction of the housing together with the connection of bicycle paths and opening of the bicycle friendly park.

67

Figure 47 Construction milestones Source: Team A3

Below is a simplified Gantt chart for the housing construction.

Figure 48 Proposed Gantt chart for housing Source: Team A3

68 15. Project conclusion

The development strategy and feasibility study for Waßmannsdorfs concluded in the vision for “An Eco-friendly Rural Center”, consists out of four major programs; providing energy-efficient housing, providing housing needs, making Waßmannsdorf greener and more accessible and a green technology startup accelerator. This programmatical framework is the backbone for the various functions that can be realized on the site, such as energy efficient housing units (both social and regular renting), green startups, office spaces, bicycle eco park with regional connecting paths, supermarkets to meet daily needs.

This concept is feasible because it is based on demand from the market, demand driven by the macro level of Berlin, the meso level of Schönefeld, and the micro level of Waßmannsdorf. The public's interest is taken into account, and the project can be developed together with the municipality. The project does not fully rely on the development of BER airport, and will function as a separate and meaningful center. The project uses local synergies, aims for a low carbon footprint, reduces car dependency and is economically viable, which makes it the sustainable option for Waßmannsdorf. The project will let Waßmannsdorf develop into a residential rural center which will sustain itself even if the BER airport does not open.

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74 Table of Figures

Figure 1 Flächennutzungsplan. Project site outlined with dotted line...... 13 Figure 2 Own graph of Waßmannsdorf's population source: Gemeinde Schönefeld, 2018 ...... 14 Figure 3 Represents the problem tree reflected by the demands ...... 15 Figure 4 Waßmannsdorf houses own picture ...... 18 Figure 5 Flächennutzungsplan. Project site outlined with dotted line ...... 18 Figure 6 map of Zentrale Orte in Brandenburg, Red dot marks project site (Landesplanungsabteilung Berlin-Brandenburg,2002) ...... 19 Figure 8 Flächennutzungsplan with project site outlined. The brown line signifies residential restriction, and the purple line shows the reach of the noise pollution from the Airport...... 20 Figure 9 map of noise pollution impacts from BER airport. Red dot is project site. (Ziegert and Knight Frank, 2018) ...... 20 Figure 10 shows population growth in Berlin (Ziegert and Knight Frank, 2018) ...... 21 Figure 11 shows rise of population vs residential units (Ziegert and Knight Frank , 2018)...... 22 Figure 12 shows housing supply and demand in Berlin (JLL, 2018)...... 22 Figure 13 development of prices (JLL, 2018) ...... 23 Figure 14 shows calculated increase of demand and prices(Ziegert and Knight Frank , 2018) ...... 23 Figure 15 indications for demands for residential segments (Ziegert and Knight Frank, 2018) ...... 23 Figure 16 shows percentage of household type for renter vs. Owner (Ziegert and Knight Frank, 2018) ...... 24 Figure 17 Industry Market size according to several sources ...... 27 Figure 18 shows market segments in industry source JLL (2018) and BNP Paribas (2018) ...... 27 Figure 19 increase in average rent for office space in Berlin Figure 11 shows increase in land take-up from 2016 to 2018. (Colliers, 2018) ...... 29 Figure 20 compares square meter cost in cities across the world source: (Ziegert and Knight Frank, 2018) ...... 30 Figure 21 market share of different sectors of startups Berlin (Booming Berlin, 2016) .. 31 Figure 22 Land use and existing cycle paths, red dot shows project site Source: Team A3 ...... 34 Figure 23 Showing the summary of Stakeholder Analysis Source: Team A3 ...... 38 Figure 24 shows Rieselfeld, Germany. Source: Meyer, 2012 ...... 41 Figure 25 building design of housing Source: Team A3 ...... 42 Figure 26 apartment sizes and design Source: Team A3 ...... 43 Figure 27 example of Stadt und Land's typenhaus placement (Stadt und Land, 2018) . 43 Figure 28 building location and design for housing needs Source: Team A3 ...... 44 Figure 29 distance from S-Bahn station using Google maps...... 45

75 Figure 30 park location Source: Team A3 ...... 45 Figure 31 proposed bicycle paths. Red dot marks the project site. Source: Team A3 ... 46 Figure 32 green tech accelerator location ...... 47 Figure 33 distance to competition using Google Maps. Red Dot is project site...... 48 Figure 34 e.on accelerator 2018 (Eon, 2018) ...... 48 Figure 35 zoning of project site Source: Team A3 ...... 49 Figure 36 master plan of project Source: Team A3 ...... 50 Figure 37 Accessibility map Source: Team A3 ...... 50 Figure 38 Energy plus houses Berlin source: inhabitat 2016 ...... 51 Figure 39 Synergies created with the surrounding Source: Team A3 ...... 52 Figure 40 Climate consideration map Source: Team A3 ...... 52 Figure 41 Greenery map Source: Team A3 ...... 53 Figure 42 location of plots Source: Team A3 ...... 55 Figure 43 Graph showing cash flows Source: Team A3...... 60 Figure 44 Current land use Figure 45 Proposed land use ...... 63 Figure 46 organization chart Source: Team A3 ...... 65 Figure 47 Pre-construction milestones Source: Team A3 ...... 67 Figure 48 Construction milestones Source: Team A3 ...... 68 Figure 49 Proposed Gantt chart for housing Source: Team A3 ...... 68

76 List of Tables

Table 1 Summary of Survey ...... 15 Table 2 commercial activities in Waßmannsdorf which might be relevant for the project...... 17 Table 3 significant turnover of rental spaces in the industry market in 2016 (Engel & Völkers, 2017)...... 26 Table 3 Showing stakeholder analysis part A ...... 35 Table 4 Showing stakeholder analysis part B ...... 37 Table 5 proposed plants (Federal ministry of food and agriculture, 2015)...... 53 Table 6 minimal floor area and catchment area for retail Source: Ostertag and Eizenhöfer, 2011 ...... 55 Table 7 Floor Areas used for calculations...... 57 Table 8 Assumptions for Rent and Yield Plot B and D. Source: Team A3 ...... 57 Table 9 Assumptions Cash Flow Statement plot B and D. Source: Team A3 ...... 57 Table 10 Assumption Development and Construction Costs according to DIN 276-1. Source Team A3...... 58 Table 11 Assumptions for building efficiency. Source Team A3 ...... 58 Table 12 Assumptions rent and Yield Plot A...... 59 Table 13 Assumptions Cash Flow Statement plot A. Source: Team A3 ...... 60 Table 14 risk analysis Source: Team A3 ...... 66

77 Appendices

Appendix 1: LEP FS „Z5” Zur Gewährleistung der Standortsicherung ist eine Planungszone Siedlungsbeschränkung in der zeichnerischen Darstellung festgelegt, in der neue Flächen und Gebiete für Wohnnutzungen und/oder besonders lärmschutzbedürftige Einrichtungen nicht geplant werden dürfen. Die Ausweisung von Flächen und Gebieten für Wohnnutzungen ist ausnahmsweise und nur in geringfügigem Umfang und nur zur Abrundung vorhandener Wohngebiete zulässig, wenn die weitere bauliche Entwicklung der Gemeinde bzw. des Bezirkes nur innerhalb dieser Planungszone möglich ist und ausreichende Lärmschutzmaßnahmen getroffen werden. Die Planung von besonders lärm- schutzbedürftigen Einrichtungen ist nur für den Fall zulässig, dass ein bereits vorhandener Bedarf nicht außerhalb der Planungszone gedeckt werden kann und ausreichende Lärmschutzmaßnahmen getroffen werden.“

Appendix 2 Artikel 10 Landesplanungsvertrag Berlin - Brandenburg Zielabweichungsverfahren Die Gemeinsame Landesplanungsabteilung kann im Einvernehmen mit den fachlich berührten Stellen und im Benehmen mit den betroffenen Gemeinden auf Antrag der in § 3 Absatz 1 Nummer 5 und in § 4 des Raumordnungsgesetzes genannten öffentlichen Stellen und Personen, die das Ziel der Raumordnung zu beachten haben, im Einzelfall Abweichungen von den Zielen der Raumordnung nach § 6 Absatz 2 des Raumordnungsgesetzes zulassen.

Appendix 3 Town and Country Planning Code (Baugesetzbuch) Section 34 The Permissibility of Development Projects within Built-Up Areas (1) Within built-up areas a development project is only permissible where, in terms of the type and scale of use for building, the coverage type and the plot area to be built on, the building proposal blends with the characteristic features of its immediate environment

78 and the provision of local public infrastructure has been secured. The requirements of healthy living and working conditions must be satisfied; the overall appearance of the locality may not be impaired.

Section 35 Building in the Undesignated Outlying Area (1) A development project in the undesignated outlying area is only permissible where there are no conflicting public interests, ample public infrastructure provision can be guaranteed and where 1. it serves agricultural or forestry activities and occupies only a minor proportion of the total plot, 2. it is for market-gardening purposes, 3. it is for the purposes of the public supply of electricity, gas, telecommunications services, heat and water or for sewerage, or it serves a commercial operation which is only possible at this location, 4. it is only to be carried out in the outlying area because of the specific demands it makes on its surroundings, its harmful effect on its surroundings or because of its special function, 5. it is intended for research and development into, or the use of, nuclear energy for peaceful purposes or for the treatment of radioactive waste, or 6. it is intended for research, development or use of wind or water-powered energy sources. (2) Other development projects may be permitted as exceptional cases provided that their execution and use do not conflict with any public interests and public infrastructure provision can be guaranteed.

Section 31 Exceptions and Dispensations (1) Exceptions to the designations contained in a binding land-use plan may be permitted where explicit provision is made for such dispensations in the binding land-use plan in respect of type and scale. (2) A dispensation from the designations contained in the binding land-use plan may be granted in individual cases where the basic intention underlying the plan are not affected, and 1. a dispensation is required for the public good, or 2. a deviation is justifiable in the interests of urban development, or

79 3. implementation of the binding land-use plan would result in evidently unintended hardship and where, after taking due account of the interests of neighbors, deviation is compatible with public interests.

Section 11 The Urban Development Contract (1) The municipality may enter into urban development contracts. Suitable subjects for urban development contracts include: 1. the preparation and implementation of urban development measures by and at the expense of the contract partner; this shall include reordering plot boundaries, soil remediation and other preparatory measures, and the drawing up of urban development plans; such delegation shall not affect the municipality’s responsibility for the statutory plan adoption procedure; 2. promoting and safeguarding the aims pursued by urban land-use planning, in particular regarding the use of plots, the implementation of counterbalancing measures pursuant to Section 1a para. 3, supplying the housing needs both of groups within society who experience special problems with regard to housing supply and of the local community; 3. the assumption of responsibility for the costs and other expenses which the municipality incurs or has incurred in respect of urban development measures and which are either prerequisites or consequences of the proposed development project; this shall include the provision of building plots. (2) Contractually agreed obligations must be commensurate with the overall circumstances. It is not permissible for an obligation to be placed upon a contract partner if this contract partner would have a claim to the performance offered in return without the said obligation being placed on him. (3) An urban development contract must be made in writing unless regulations exist to prescribe some other form. (4) Nothing here shall affect the admissibility of other urban development contracts.

Appendix 4 Infrastructure Cost of the Project The infrastructure cost for connecting to the water grid would cost to about 1.98 EUR per square meter of the net area which amounts to less than 84,000 EUR (Haus-xxl, 2018)

80 The cost of connecting to the power grid would be cost-free as the service would be covered by the government or the energy supplier (Bundesnetzagentur, 2018) Repaving the roads and bicycle paths which would cost less than 800,000 EUR with class 5 asphalt (Scwirten, 2010). Finally, the cost for the bicycle leisure park is estimated to be about 373,000 EUR based on own calculations.

Appendix 5 Calculation sheets

81 82 83

84 Appendix 6

Residential rent and sales prices on June 9th 2018

85

Commercial rent and sales prices on June 9th 2018

Appendix 7 Gesetz zum Schutz gegen Fluglärm § 2 Einrichtung von Lärmschutzbereichen (1) In der Umgebung von Flugplätzen werden Lärmschutzbereiche eingerichtet, die das Gebiet der in dem nachfolgenden Absatz genannten Schutzzonen außerhalb des Flugplatzgeländes umfassen. (2) Der Lärmschutzbereich eines Flugplatzes wird nach dem Maße der Lärmbelastung in zwei Schutzzonen für den Tag und eine Schutzzone für die Nacht gegliedert. Schutzzonen sind jeweils diejenigen Gebiete, in denen der durch Fluglärm hervorgerufene äquivalente Dauerschallpegel L(tief)Aeq sowie bei der Nacht- Schutzzone auch der fluglärmbedingte Maximalpegel L(tief)Amax die nachfolgend genannten Werte übersteigt, wobei die Häufigkeit aus dem Mittelwert über die sechs verkehrsreichsten Monate des Prognosejahres bestimmt wird (Anlage zu § 3): 1.Werte für neue oder wesentlich baulich erweiterte zivile Flugplätze im Sinne des § 4 Abs. 1 Nr. 1 und 2:

Tag-Schutzzone 1:

L(tief)Aeq Tag = 60 dB(A),

Tag-Schutzzone 2:

86 L(tief)Aeq Tag = 55 dB(A),

Nacht-Schutzzone a) bis zum 31. Dezember 2010:

L(tief)Aeq Nacht = 53 dB(A),

L(tief)Amax = 6 mal 57 dB(A), b) ab dem 1. Januar 2011:

L(tief)Aeq Nacht = 50 dB(A),

L(tief)Amax = 6 mal 53 dB(A);

2.Werte für bestehende zivile Flugplätze im Sinne des § 4 Abs. 1 Nr. 1 und 2:

Tag-Schutzzone 1:

L(tief)Aeq Tag = 65 dB(A),

Tag-Schutzzone 2:

L(tief)Aeq Tag = 60 dB(A),

Nacht-Schutzzone:

L(tief)Aeq Nacht = 55 dB(A),

L(tief)Amax = 6 mal 57 dB(A);

3.Werte für neue oder wesentlich baulich erweiterte militärische Flugplätze im Sinne des § 4 Abs. 1 Nr. 3 und 4:

Tag-Schutzzone 1:

L(tief)Aeq Tag = 63 dB(A),

Tag-Schutzzone 2:

87 L(tief)Aeq Tag = 58 dB(A),

Nacht-Schutzzone a) bis zum 31. Dezember 2010:

L(tief)Aeq Nacht = 53 dB(A),

L(tief)Amax = 6 mal 57 dB(A), b) ab dem 1. Januar 2011:

L(tief)Aeq Nacht = 50 dB(A),

L(tief)Amax = 6 mal 53 dB(A);

4. Werte für bestehende militärische Flugplätze im Sinne des § 4 Abs. 1 Nr. 3 und 4:

Tag-Schutzzone 1:

L(tief)Aeq Tag = 68 dB(A),

Tag-Schutzzone 2:

L(tief)Aeq Tag = 63 dB(A),

Nacht-Schutzzone:

L(tief)Aeq Nacht = 55 dB(A),

L(tief)Amax = 6 mal 57 dB(A). Neue oder wesentlich baulich erweiterte Flugplätze im Sinne dieser Vorschrift sind Flugplätze, für die ab dem 7. Juni 2007 eine Genehmigung, eine Planfeststellung oder eine Plangenehmigung nach § 6 oder § 8 des Luftverkehrsgesetzes für ihre Anlegung, den Bau einer neuen Start- oder Landebahn oder eine sonstige wesentliche bauliche Erweiterung erteilt wird. Die sonstige bauliche Erweiterung eines Flugplatzes ist wesentlich, wenn sie zu einer Erhöhung des äquivalenten Dauerschallpegels L(tief)Aeq Tag an der Grenze der Tag-Schutzzone 1 oder des äquivalenten Dauerschallpegels L(tief)Aeq Nacht an der Grenze der Nacht-Schutzzone um mindestens 2 dB(A) führt. Bestehende Flugplätze im Sinne dieser Vorschrift sind Flugplätze, bei denen die Voraussetzungen der Sätze 3 und 4 nicht erfüllt sind.

88 (3) Die Bundesregierung erstattet spätestens im Jahre 2017 und spätestens nach Ablauf von jeweils weiteren zehn Jahren dem Deutschen Bundestag Bericht über die Überprüfung der in Absatz 2 genannten Werte unter Berücksichtigung des Standes der Lärmwirkungsforschung und der Luftfahrttechnik.

89

Internship Guidelines Department of Urban Development 2018