DISSERTATION Titel der Dissertation Between Urban Decay and Rejuvenation. Deliberate Employment of Gentrification in Neighbourhood Development: Case Studies from New York City, Berlin and Vienna. Verfasserin Yvonne Franz angestrebter akademischer Grad Doktorin der Philosophie (Dr. phil.) Wien, 2013 Studienkennzahl lt. Studienblatt: A 092 452 Dissertationsgebiet lt. Studienblatt: Geographie Betreuerin / Betreuer: Univ.-Prof. Dr. Heinz Faßmann Table of Content A. Introduction: Urban Rejuvenation as the Key Driver of Competitive Cities ................................... 3 1. The Problem: City Embeddedness in Globalised Processes of Transformation .......................... 4 2. The Present State: Urban Development and Rejuvenation in the Current Academic Discourse ............................................................................................. 7 3. Closing of the Gap: Gentrification as a Steered Component of Urban Rejuvenation ................. 9 B. Research Design ............................................................................................................................ 10 4. Research Interest and Research Questions ............................................................................... 10 5. Research Aims and Objectives .................................................................................................. 23 6. Methodology: Methods and Sources ........................................................................................ 25 6.1 Comparative Multiple Case Study Approach: The Added Value and Limitations ............. 25 6.2 A Mixed-Methods Approach: Qualitative Policy and Actors Analysis Supported by Quantitative Data .............................................................................................................. 29 6.3 Choice of Sample ............................................................................................................... 41 7. Research Design and Scope of Research ................................................................................... 46 C. Assorted Theories, Terms and Concepts with Regard to Urban Rejuvenation Practices ............. 49 8. The Approach of Urban Comparison ......................................................................................... 50 8.1 Similar Yet Different? The Nuances of Urban Terminology .............................................. 50 8.2 Cycle Models of Urban Transformation ............................................................................ 61 8.3 Existent Political Systems and Real Estate Economies ...................................................... 71 8.4 Evidence of Convergence and Divergence ........................................................................ 74 9. The Concept of Gentrification ................................................................................................... 77 9.1 The Genesis of the Term “Gentrification” ......................................................................... 79 9.2 Explanatory Concept of Gentrification .............................................................................. 99 9.3 Current Gentrification Discourse and the Crisis of ‘Gentrification’ ................................ 102 9.4 Gentrification Revisited? ................................................................................................. 104 10. Bounded Rationality and the Role of Embeddedness in Urban Development ................... 108 1/296 D. From Urban Rejuvenation to Gentrification: Urban Planning Practices in New York, Vienna and Berlin ................................................................................................... 112 11. Urban Rejuvenation within a Neoliberal Context: Williamsburg-Brooklyn, New York City ............................................................................... 114 11.1 Location, History and the Current State of Gentrification and Urban Rejuvenation ...... 116 11.2 Quantitative Neighbourhood Profile .............................................................................. 123 11.3 The Political and Institutional Framework ...................................................................... 129 11.4 Bounded Rational Choices of Actors involved in Urban Rejuvenation Practices ............ 151 11.5 The Contextualised Interplay of Policies, Actors and Gentrification ............................... 167 12. Urban Rejuvenation within a Social Welfare State Context: Mariahilf, Vienna ................................................................................................................. 169 12.1 Location, History and the Current State of Gentrification and Urban Rejuvenation ..... 171 12.2 Quantitative Neighbourhood Profile ............................................................................... 178 12.3 The Political and Institutional Framework...................................................................... 187 12.4 Bounded Rational Choices of Actors Involved in Urban Rejuvenation Practices ........... 200 12.5 The Contextualized Interplay of Policies, Actors and Gentrification .............................. 214 13. Urban Rejuvenation Between Neoliberal and Social Welfare State Context: Prenzlauer Berg, Berlin ........................................................................................................ 217 13.1 Location, History and the Current State of Gentrification and Urban Rejuvenation ..... 220 13.2 Quantitative Neighbourhood Profile .............................................................................. 224 13.3 The Political and Institutional Framework...................................................................... 230 13.4 Bounded Rational Choices of Actors Involved in Urban Rejuvenation Practices ........... 240 13.5 The Contextualised Interplay of Policies, Actors and Gentrification ............................... 259 E. Outlook ............................................................................................................................................ 261 14. Main Findings ...................................................................................................................... 262 15. Policy Recommendations .................................................................................................... 265 Bibliography ......................................................................................................................................... 267 List of Tables ........................................................................................................................................ 283 List of Figures ....................................................................................................................................... 284 List of Maps ......................................................................................................................................... 285 List of Boxes ......................................................................................................................................... 285 Annex ................................................................................................................................................... 286 2/296 Acknowledgments This dissertation would not have been possible without the support of many colleagues, friends and my family. Heinz Fassmann | For supervision, continuous trust and support of my professional activities. John Mollenkopf | For supervision, inspiring discussions and criticism. My mother & my father | For endless love, being proud of your children and your trust in their skills. My brothers | For your love and willingness to wear souvenirs from my research trips. Günter | For being part of my life and a pillar of support for anything that I do. Anna and Ziska | For your style and do-it-yourself enrichment. Claudia | For sharing tears of joy and real delicious bakeries. Heidi | For being my best buddy in writing and motivation. Jerilyn and family | For your generosity, your knowledge and becoming a truly valueable friend. Lole | For your loyality and our fun at work in D519. Maxl | For illuminating discussions and your Bavarian sense of life. Ruthlind and Hans | For your caring and becoming my summer family. Tini, Susi and Cordi | For our “old” friendship and appreciating our dissimilarities. Veri | For sharing our special humour and daydreams. Xocolat | For your wide variety of high-end chocolate. Angelika | For your hands-on support. Colleagues | For your support, respect and willingness to explore new paths. “Disselei Ladies” | For the fun part of serious writing. Interview Partners in New York City, Berlin and Vienna | For your time, knowledge and collaboration. The Department of Geography and Regional Research | For support in research and teaching. University of Vienna | For grants and helpful support in research. Many other people | For your interest in my research, your kindness and development of my skills. Thank you. 3/296 A. Introduction: Urban Rejuvenation as the Key Driver of Competitive Cities 1. The Problem: City Embeddedness in Globalised Processes of Transformation “Cities are places where both problems emerge and solutions are found. They are fertile ground for science and technology, for culture and innovation, for individual and collective creativity, and for mitigating the impact of climate change. […] We need to better understand the challenges that different European cities will face in the years ahead. […]” Johannes Hahn,