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Rethinking The Commercial office Sector: Revitalizing Harare CBD - - PowerPoint PPT Presentation

Jan 31, 2023 286 likes •485 views

Rethinking The Commercial office Sector: Revitalizing Harare CBD Presented by Gibson Mapfidza Contents The birth of Harare the City 1. Current Urban Problems and Default 2. Responses Theory and lessons from pioneering urbanites 3.

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SLIDE 1

Rethinking The Commercial office Sector: Revitalizing Harare CBD Presented by Gibson Mapfidza

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SLIDE 2

1.

The birth of Harare the City

2.

Current Urban Problems and Default Responses

3.

Theory and lessons from pioneering urbanites

4.

Proposed Collaborative model for revitalisation

5.

Funding urban renewal

Contents

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SLIDE 3

The Birth of Harare

  • 04 F

e br uar y 1890 – the Pio ne e r Co lumn se ttle d a t the K

  • pje . Stra te g ic

lo c a tio n fo r e a rly de te c tio n o f ho stile indig e no us Afric a ns.

  • 12 Se pte mbe r 1890 – the mo re milita nt British So uth Afric a n se ttle d a t the

F

  • rt Grid no w Afric a Unity Sq ua re .
  • T

he two Gro wth Po le s ma rke d e a rly se ttle me nt o f Ha ra re .

  • T

he Kopje

  • Spo nta ne o us a nd spo ra dic se ttle me nt a t the K
  • pje
  • T

he F

  • r

t Gr id

  • Ca re fully pla nne d Se ttle me nts a t F
  • rt Grid ; g rid pa tte rns a nd wide

ro a ds. T he c ity wa s na me d F

  • rt Sa lisb ury a fte r PM o f Gre a t Brita in.

Kopje, 1895

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SLIDE 4

Corner Samora Machel /Julius Nyerere way, 1952

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SLIDE 5

Harare 128 years later, 2018

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SLIDE 6

In the Media…

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SLIDE 7

Harare Today: Key Issues

URBAN PROBLEMS

  • Urbanisation (14% ) occurring at a faster rate

than urban economy growth.

  • Traffic congestion and grid-lock, pollution,
  • vercrowding, street venor menace
  • Out-migration of corporate occupiers

OBSOLESCENCE

  • Late 70s and early 80s

buildings have no ceiling voids or raised floors

  • Old and inefficient

building equipment resulting in high OPCs for the occupier.

  • Ineffective space

utilisation – services design URBAN BLI GHT & URBAN DECAY

  • GDP shrinkage +

unattractive CBD = market average of 40% voids.

  • Advanced urban decay

around the Kopje area.

  • Prisoners’ dilemma and

restrictive town planning regulation hampering redevelopment DECLI NI NG PROPERTY VALUES CBD TOW N PLANNI NG – URBAN LAND USE

  • Outdated and restrictive town planning

regime.

  • Discourages redevelopment and encourages
  • wners of building to speculate on their

property holding.

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SLIDE 8

Responses from KEY City Stakeholders?

  • Pro pe rty o wne rs ho lding o n to no n-pe rfo rming

a sse ts; de fe r c ritic a l re ha b ilita tio n.

  • Do wnwa rd re nt re vie ws, GARs ˂ OPC
  • Co rpo ra te o c c upie rs mig ra te o ut o f the CBD
  • E

me rg e nc e o f o ffic e pa rks a nd dise c o no mie s o f a g g lo me ra tio n (I CT ) susta ins this mo ve

  • City o f Ha ra re c o nde mne d o ve r 200 b uilding s

b e twe e n 2010 a nd 2013

  • Pe rc e ive o utmig ra tio n a s a re sult o f o ld b uilding

fa b ric a nd ine ffic ie nt b uilding infra struc ture

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SLIDE 9

UNDERSTANDING URBAN RENEWAL

T he te rm ur

ban r e ne wal / r e vitalization

me a ns re b irth o r r

e ge ne r ation o f c ity o r pa rt

  • f it whic h ha s b e e n pla g ue d b y the ills o f

urb a niza tio n.

 T

he pla nning c o nc e pt o rig ina te d in Ame ric a in 1930s

 De c a ye d pa rts o f the City we re

de mo lishe d a nd re b uilt

 I

t ta lks to de libe ra te loc a l polic ie s a nd

stra te g ie s put in pla c e to de a l with the

so c ia l, e c o no mic a nd struc tura l de c a ying

  • f pa rt o f the c ity fo r the purpo se o f

g e tting a de sire d we ll o rg a nize d ne ig hb o rho o d.

 Co uld b e a t mic ro , b uilding spe c ific le ve l

(b lig hte d a re a s) o r ma c ro -spa tia l (urb a n de c a ye d)

 T

he pro c e ss thrive s o n c o mmunity pa rtic ipa tio n.

 Urb a n re ne wa l o we s its o rig ins to

do wnto wn me rc ha nts in Ame ric a – re fine d, pa c ka g e d a nd so ld the ir pro po sa l to City a utho ritie s

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SLIDE 10

The case for redevelopment and refurbishment

OPC1

OPC0 GARS1 GARS0 NAR GARs / OPC

Re ha b ilita tio n (re furb ishme nt a nd re d e ve lo pme nt) ha s the e ffe c t o f inc re a sing the GARs a nd re d uc e OPC. As a re sult e xte nd s the e ffe c tive e c o no mic life o f b uild ing s a nd a llo w the c o ntinue d c o nsumptio n o f so c ia l va lue .

T, years

The case for redevelopment and refurbishment

Economic Lifeb Economic Lifea

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SLIDE 11
  • T

he situa tion tha t Ha ra re finds itse lf in is not unique to it a lone . Zimba bwe ha s to ta ke a c ue from Ame ric a , UK, Austra lia , Bra zil a nd South Afric a a mong othe rs who we nt throug h va rious forms of urba n blig ht & de c a y in the ir c itie s but suc c e ssfully ma na g e d to re birth the m

Ame ric a fa c e d urb a n b lig ht a nd d e c a y in 1930’ s fo llo wing the Gre a t De pre ssio n. Cha lle ng e s inc lud e d ho ld o uts a nd via b ility e nha nc e me nt. Go ve rnme nt purc ha se d re d e ve lo pme nt site s a nd so ld to Priva te De ve lo pe rs, T he L

  • c a l g o vt pro vid e d suppo rt infra struc ture fo r priva te

re b uild ing a nd a F le xib le T

  • wn Pla nning re g ime .

…….So what really is the solution ???

USA “Eminent Domain” UK, Canary Wharf “Enterprise Zones” Australia “Precincts”

Isle o f Do g s, e a st L

  • nd o n is o ne o f the e a rlie st e xa mple s o f mo d e rn

a ppro a c he d to urb a n re ne wa l. British Go ve rnme nt c re a te d a De ve lo pme nt Co rpo ra tio n in 1981 a nd g ra nte d the isle o f Do g s “E nte rprise Zo ne ” sta tus in 1982. Cre a te d ta x inc e ntive s to inve sto rs a nd d e ve lo pe rs In 2014 Austra lia n Go ve rnme nt a me nd e d its urb a n Re ne wa l Ac t 1995, intro d uc ing a ne w me tho d o f pre c inc t d e ve lo pme nt d e live ry. Pro vid e s tha t a pre c inc t(d e ve lo pme nt) c a n b e pla nne d , a ppro ve d a nd imple me nte d b y a n a ppo inte d Pre c inc t Autho rity. A pre c inc t a utho rity is a n a lte rna tive to c o unc il. It ha s sig nific a nt inte re st in a pre c inc t within its a re a , while c o unc il is se e n a s a g o ve rning b o d y.

South Africa “Precincts/ UDZ”

In 2004 a n 18km 2 wa s d e sig na te d Urb a n De ve lo pme nt Zo ne (UDZ) fo r the c ity o f Jo b urg . UDZ ta x inc e ntive s we re intro d uc e d to e nc o ura g e re ne wa l. Pro pe rty o wne rs within UDZ ma y c la im 100% ta x a llo wa nc e o n re furb ishme nts o ve r 5 ye a rs pe rio d whilst Ne w pro pe rty d e ve lo pme nts c la im ta x a llo wa nc e o ve r 17 ye a rs. Pro pe rty o wne rs a g re e d to pa y City Impro ve me nt Distric t(CID) fo r e nha nc e d se rvic e s to impro ve physic a l a nd so c ia l fa b ric o f the a re a

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SLIDE 12

Harare Urban Renewal Challenges

L

  • c a l Pla n Numbe r 17 (K
  • pje ) wa s

la st re vie we d in 1998. Zo ning re stric tio ns whic h limit the flo o r spa c e tha t c a n b e de ve lo pe d.

L

  • c a l Pla n Numbe r 22 is da te d. L

a nd use s a re c o ntro lle d b y a lo c a l pla n zo ning ma p a nd de ve lo pme nt c o ntro l c o nditio ns (P, SC, NP).

Holdouts – unre a so na b ly hig h pric e s

de ma nde d b y individua l o wne rs o f

  • b so le te pro pe rty inte nde d to b e

b ro ug ht in a re de ve lo pme nt sc he me . T e na nts

 T

he fre e hold la nd te nure syste m – ma ke s it ve ry diffic ult to institute c o mpulso ry a c q uisitio n

 Priso ne rs dile mma syndro me . 

We a k prope rty ma rke t –

re ha b ilita tio ns b e ne fits a re lo we r in de pre sse d ma rke t se g me nts.

 A fra g me nte d a pproa c h b y ke y

sta ke ho lde rs – the City, pro pe rty

  • wne rs, c o rpo ra te o c c upie rs &

c o mmunity

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SLIDE 13

Broad Recommendations

I nvig o ra te urb a n g ro wth – re so lve urb a n pro b le ms, ve ndo r me na c e

I nstitute a n a ll-e nc o mpa ssing Ha ra re Urb a n Re g e ne ra tio n Bo a rd (HURB)

Re vie w L

  • c a l Pla n numb e r 22 a nd 17, c o me up with a CBD T
  • wn

Pla nning syste m tha t is mixe d-use drive n. Pro vide spa c e fo r SME s.

Pro pe rty Owne rs Asso c ia tio n o f Zimb a b we fina nc e s the Ope ra tio ns o f HURB a nd re vie w o f L

  • c a l Pla ns.

Ado pt the Pre c inc ts c o nc e pt fo r spa tia l urb a n re ne wa l.

HURB to c o me up with a la nd a c q uisitio n fra me wo rk (re sidua l va lua tio n) to b e g a zze tte d into a Sta tuto ry I nstrume nt to e nsure a sse mb ly o f la nd.

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SLIDE 14

Proposed PPP models for Inner City Revitalization

Private sector

  • A

Pa rtne rship be twe e n the public se c tor, Priva te se c tor a nd c ommunity is re quire d for a suc c e ssful urba n re ne wa l. T his should he lp in sha ring of ide a s ,skills a nd te c hnolog ie s. A strong buy in from the c ommunity is a lso c ritic a l.

Integrated model

Local Authority/ Govt Property

  • wners &

Developers

  • Mixe d use drive n la nd

use de ve lo pme nt pla ns

  • L

a nd a c q uisitio n fra me wo rk OR a c q uire fro m c urre nt

  • wne r a nd dispo se to

de ve lo pe rs a t via b le pric e s

  • T

a x inc e ntive s fo r re ha b ilita tio ns / re de ve lo pme nt

  • T

runk infra struc ture pro visio n fo r sc he me via b ility

  • Unlo c k funding

po te ntia l

  • Dispo se c urre nt

inte re st to re le a se re de ve lo pme nt site s

  • Priva te se c to r

I nno va tio n

  • De -risk/ risk sha ring
  • De ve lo pe r- de sig n

skills to re po sitio n site use (ne w thinking)

  • Co st e ffe c tive mo de ls

Corporate Occupiers/ Community

  • Buy-in. Ma rke t fo r g o o ds

a nd se rvic e s

  • Re so urc e b a se , la b o ur.

Proposed Collaborative Model for Inner City Revitalization

HURB

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SLIDE 15

Funding Urban Renewal - $£

Priva te se c to r fina nc e is inhib ite d in inne r-c ity re g e ne ra tio n; tra ditio na l risk/ re wa rd inve stme nt c rite ria

Urb a n de c a y / b lig ht we a ke ns the pro pe rty ma rke t = hig h risk

 we a k spa c e de ma nd,  po o r te na nt c o ve na nts,  fe w la rg e inve stme nt lo ts,  c o mple x pa tte rns o f la nd o wne rship  Ve ry limite d ma rke t info rma tio n 

HURB, POAZ o r City o f Ha ra re sho uld wo rk to e ra dic a te the a b o ve to a ppe a se priva te funding .

Go ve rnme nt – inc e ntivize te na nts o c c upying re de ve lo pme nt zo ne s.

Cha ng e o f use to mixe d use shifts the la nd va lue .

L a nd c a pture va lue (L CV)

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SLIDE 16

Land Capture Value Concept

I nc re a se in Priva te pro pe rty va lue

….sinc e re vita lisa tio n g e ne ra te s stro ng windfa lls, wha t to o ls a re a va ila b le a t the a utho ritie s' dispo sa l to fina nc e infra struc ture de ve lo pme nt? ?

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SLIDE 17

VALUE CAPTURE TOOLS: POSSIBLE FINANCING INSTRUMENTS

  • L

a nd Va lue / Be tte rme nt L e vie s

  • T

a x Inc re me nta l F ina nc e - T IF

  • Spe c ia l Asse ssme nt
  • Pa rtic ipa tion in Ca pita l Ga ins
  • Utility F

e e s inc luding tra nsporta tion

  • Ac quisition a nd sa le of la nd

unde r spe c ific c onditions

  • L

a nd re a djustme nt sc he me s

  • De ve lopme nt impa c t fe e
  • L

a nd ba nks

  • Ne g otia te d e xa c tions
  • Joint de ve lopme nt
  • Construc tion a nd a ir rig hts
  • Re zoning
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SLIDE 18

So when Renew Harare??? …N-O-W!!!

…The paradox of africa!

“Pole pole means slowly, slowly in Swahili and in East Africa, you hear this often. African time is real! There’s no rush in Africa. When you rush, you miss out on so much”

Thank you