UvA-DARE (Digital Academic Repository) Building for consumption: an institutional analysis of peripheral shopping center development in northwest Europe Evers, D.V.H. Publication date 2004 Document Version Final published version Link to publication Citation for published version (APA): Evers, D. V. H. (2004). Building for consumption: an institutional analysis of peripheral shopping center development in northwest Europe. General rights It is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), other than for strictly personal, individual use, unless the work is under an open content license (like Creative Commons). Disclaimer/Complaints regulations If you believe that digital publication of certain material infringes any of your rights or (privacy) interests, please let the Library know, stating your reasons. In case of a legitimate complaint, the Library will make the material inaccessible and/or remove it from the website. Please Ask the Library: https://uba.uva.nl/en/contact, or a letter to: Library of the University of Amsterdam, Secretariat, Singel 425, 1012 WP Amsterdam, The Netherlands. You will be contacted as soon as possible. UvA-DARE is a service provided by the library of the University of Amsterdam (https://dare.uva.nl) Download date:23 Sep 2021 CHAPTER 4: CASE STUDY OBERHAUSEN 4.0 Introduction In September 1996, CentrO, the largest out-of-town shopping mall and entertainment complex on the European continent opened its doors to the public in the unlikely location of Oberhausen, a modestly sized city in a run-down industrial region of Germany. From all reports, the mall is a phenomenal commercial success. It is now one of the biggest and well- known leisure attractions in Germany, and is the setting for many festivals and events. In the evenings and weekends, crowds of people stroll along its promenade, once the site of a gigantic steel factory. CentrO, however, is just the largest piece of the wider puzzle that is the Neue Mitte. This new “city center” also includes a theme park, an exhibition center in a 100m tall gas tank, a multifunctional stadium, multiplex cinema, and plans for an aquarium, yacht harbor, offices and a technology center featuring a 60-meter tall glass human sculpture. With an investment volume of € 600 million, it is the single largest economic impulse in the Ruhrgebiet since the construction of the Opel factory in Bochum in the 1950s (CentrO, 1997).48 The Neue Mitte marks an unprecedented structural change for Oberhausen, transforming it for the first time from a manufacturing and production location into a tourist destination: ten thousand of the forty thousand jobs lost to the demise of the coal and steel industry have been earned back, and Oberhausen appears to be a city on the rebound — thanks in part to CentrO (BBR, 1999). Behind every success story is usually a tale of struggle, and CentrO is certainly no exception. The proposal for the mall was met with mistrust from the surrounding communities who feared substantial losses in retail sales, and a concerted effort by municipalities in the region had successfully blocked a similar project a few years before. After a political battle at the state level waged with distributional studies and strategic design concessions, Oberhausen was able to obtain the zoning necessary to allow the Neue Mitte project to go forward. Despite the various spin-off effects, CentrO did not come without its costs for Oberhausen. Even by the most conservative estimates, CentrO has had a significant impact on Oberhausen’s city center in both quantitative (lost sales) and qualitative (functional downgrading) terms. In many respects, the Neue Mitte has taken over the role usually performed by traditional town centers: as a place to browse storefronts, meet friends, enjoy a drink, and especially spend money. Today, the bustling nightlife of the promenade contrasts sharply with the barren landscape of the city center. Even on Sundays when shops are closed, people will drive to CentrO to stroll through its enclosed corridors and along the promenade. For marketing experts, this is a clear indication of what consumers want. Indeed, the success of CentrO has led to the propagation of similar schemes elsewhere in the region. Major retail proposals are in various stages of planning and development in cities like Essen, Duisburg and Dortmund. Whether the region can support all these initiatives — given the effect of CentrO on Oberhausen — is currently the subject of a raging but inconclusive debate in the media, political forums and expert meetings. 48 For legibility, all figures expressed in guilders or marks in this dissertation have been converted into euros. -79- CHAPTER 4: CASE STUDY OBERHAUSEN This chapter — the first empirical case study — will analyze the development of the Neue Mitte by examining how the institutional context in this part of Germany framed the decision- making strategies of the most crucial actors involved, and how this contributed to the final product. The institutional context will be divided into a discussion on the administrative structure of the state and the formal planning system. Next, the different policies implemented at various governmental tiers seeking to regulate the retail sector will be investigated, along with a discussion of their effects. This will permit a closer examination of the case at hand: Oberhausen (§4.3). This section chronicles how one developer, by adopting an all-or-nothing strategy, failed in his bid to build a large-scale shopping center in Oberhausen, and how a more strategic, inclusive and flexible approach by a different developer a few years later succeeded. Next, some of the consequences of the mall will be discussed, and some remarks made about the efficacy of impact reports (§4.5). Finally, the conceptual framework constructed in Chapter 3 will be recalled and applied to the case study, and a few concluding remarks and observations made. A more concise summary and conclusion can later be found in Chapter 7. 4.1 National/state context Located at the heart of the Continent, Germany is one of the most prosperous and populous countries in Western Europe, and a main driving force behind the European Union. Its history of urban and retail development in the time frame of this study has become vastly complicated by the unification, making it difficult to accurately discern specific retail trends over time. This is compounded by the challenges that the incorporation of the new states (Länder) pose in terms of planning policy and land tenure regulation. Development interests have taken advantage of the confusion to such an extent that some areas in the former DDR are sometimes referred to as “the wild east” in planning circles (Jürgens, 1995; Vielberth, 1995; Blotevogel, 2000). Before launching into a discussion of retail planning issues currently facing Germany, however, a few general points need to be made about the administrative composition of the country, the scope for action German planning authorities have in the Ruhr area and about the environment in which they operate. -80- CHAPTER 4: CASE STUDY OBERHAUSEN 4.1.1 The German planning system Germany’s governmental structure is highly complex, with various kinds of regional and local governments in place, but generally follows a three-tier structure of federal, state and local levels of authority. The most important historical administrative feature of the country is its decentralized nature — except for the brief period of the Third Reich in which power was consolidated under the Nazi regime, the history of Germany is one of strong local identity and self-determination (Norton, 1994). The current administrative structure continues in this tradition: the 1949 Constitution keenly interested in averting the horrors that had occurred under the Nazis, established a decentralized federal structure in which most authority rests with the States (Länder). Since unification, the country is comprised of sixteen states of varying size and population. Three of these are city-states (Berlin, Hamburg and Bremen) and pose their own unique planning challenges. German states have their own constitution, parliament and executive (Faludi, 1997: 12), and since the Maastricht Treaty, these have even become major actors on the European policymaking stage, skipping the national level altogether (Benz, 1998: 111). Most legislative decisions made at the national level in the Lower House/Parliament (Bundestag) will require the consent of the Upper House/Federal Council (Bundesrat), which contains representatives from the federal states. By inference, the German planning system can also be said to be decentralized in comparison to most other Western European countries, certainly in relation to the Netherlands and the UK. Specifically, Article 28 of the Federal Constitution guarantees a functionally active local self-government, and identifies municipalities as the only responsible party for specific land- use and development decisions within their jurisdiction (European Commission, 1999: 23). In this sense, German planning may resemble that of the United States insofar as growth management (if existent) in the latter is primarily administered at the state level and carried out at the local level, with the federal government at most providing guidelines and funds for such things as infrastructure. It should be added that spatial planning or Raumordnung49 in Germany is a highly legal-technical matter, and reference is continually made in policy documents and research to the volumes of juristic verbiage that precisely circumscribe the limits within which parties may act. One of the reasons for this is that, unlike for example the Netherlands, the law includes substantive as well as procedural elements. Another complicating factor is that German federal planning law is legally binding on the one hand (Faludi, 1997: 15), but needs to be supplemented by legislation at the state level on the other (Faludi, 1997: 18).