Source: Guihuazhongguo
3.Urban Renewal System Response of “Multiple Stakeholders-Capital Source-Physical Space-Operation Service”.
Advancing the institution-building response from the 4S dimension requires specific policy tools to address the pain points and difficulties of the day.
3.1 Theoretical foundations and institutional priorities under the“Multiple Stakeholders”dimension.
The “Multiple Stakeholders” dimension mainly includes three aspects. The first is to coordinate the external game, i.e. “government-residents-market” tripartite subjects. For renewal projects that are not profitable to the market, the initiative of social capital can be stimulated through land grant agreements, land price reductions and exemptions, tax incentives, and holding and operation; for renewal projects where residents are passively waiting for renewal, it is necessary to attract the right holders to apply for renewal on their own, and to mobilize the community and community building; for renewal projects where the government has taken on too much responsibility, it is possible to explore public-private partnerships, and to encourage property rights holders to contribute to the project. For example, if in the process of urban village renewal in Guangzhou, the villagers ask for compensation, the market can not give so high subsidies will lead to project stagnation, if the rules agreed, more than 400 square meters will not be counted; less than 60 square meters, in order to take care of the disadvantaged groups can be counted according to the 60 square meters, etc. - similar to these The emergence of rules can reduce the game pull and maintain social justice.
The second is to balance the internal game. For example, the old residential installation of elevators, if the ground floor of a household does not agree that can not promote the update will make the project stagnate, then if the update regulations in accordance with the double three-quarters of the policy to make a decision, not a veto, the residents of the internal relationship between a necessary regulation. Through rule-making, it is also possible to coordinate the game between municipal and district governments, the game between planning, housing, transportation and other departments, and the game between multiple stakeholders.
Third, the introduction of new stakeholders. A series of explorations have been conducted throughout the country to stimulate renewal through the“multiple stakeholders”policy, for example, the Shanghai Urban Renewal Ordinance mentions increasing the participation of property owners and state-owned enterprises, explicitly proposes the main body of renewal coordination, and promotes practices such as the community planner system. Whether it is Beijing's responsible planners, Shanghai's community planner system, or the professional platforms, assessment and consulting agencies, as well as university student and faculty practice groups, artists, volunteers and social organizations that are emerging around the world, all are important forces in urban renewal.
Taking Enning Road, the “most beautiful old street in Guangzhou” where Yongqingfang is located, as an example, it can be found that between 2006 and 2017, this place has experienced the stage of demolition, reconstruction and relocation, which was decided by the government in a one-dimensional closed decision-making process, as well as the stage of passive participation of the public in which media tracking reports and residents complained about and defended their rights, and then the stage of participation by the media, experts, residents and other social groups. Later on, the media, experts, residents and other social groups participated in the stage of multiple subjects to jointly promote the optimization of policy decision-making, and the interactive role of multiple stakeholders has been brought into full play in the process of the formation of the current conservation-oriented plan.
3.2 Theoretical foundations and institutional priorities under the“Capital Source” dimension.
In the dimension of “Capital Source”, the first is to optimize the use of government funds, and give full play to its “prying” and “integrating” roles. The government can through special funds, financial allocations to promote the transformation of old districts, street remediation, micro-space upgrading, etc., which may exist in the integration of funds, earmarking, misalignment of demands and other issues need to optimize the use.
The second is to attract multi-party funding from society, that is, “who benefits, who funds”. Urban renewal projects often have high costs, high risks, long cycles and thin returns, so the government needs to form safeguards and incentives through land price concessions, policy subsidies, authorization of the main body, cooperation and operation. In addition, with the help of resource deployment, fat and thin matching, new and old combination, area coordination is also conducive to attracting social capital involved in urban renewal.
Third, increase financial and fiscal support. Promoting tax exemptions, long-term low-interest loan support, flexible pledge guarantee, etc. to help capital withdrawal, the establishment of urban renewal funds, equity financing, bond financing and asset securitization to reduce the pressure on capital are all important practices. Beijing's Zhenwumiao project, which rents houses back from the people and then rents them out to the community to earn the difference in price after remodeling, wants to explore the use of Reits as an exit channel.
From the capital “investment - financing - management - retreat” process can be seen, the expansion of heavy assets in the period of transformation and a relatively single way to profitability, the project can be profitable in one or two years. However, in the stock period, many of them are asset-light, and the implementer no longer buys houses and land, but focuses more on the right to operate for profit. The source of funds is no longer just loans from banks, and the way of profitability is no longer just selling the house, but also through the provision of ancillary services, property and industrial operation and maintenance to make profits in a longer cycle. Regarding how many years it is acceptable for an urban renewal project to pay back its capital, companies prefer 5-10 years.
More detailed can be accessed by:https://mp.weixin.qq.com/s/KlU7O6E-SS7PiUOpYMkqZg
Edited and Translated by Tao Guan
Copyright @ 2014 Urban Planning Society of China
Registration Number:05073892-1
