From 0 To 1 - Comparative steps in the design of the ex-hospital

FROM 0 TO 1 comparative steps in the design of the ex-hospital

2009 - 2010 _Sustainable Project Evaluation_Prof. Alessandra Oppio

Fabrizio Introini 734432 Francesco Ronchi 736540

01.Case study - High Line Park

Project location_

Design teams_

New York Country_

landscape architecture : James Corner Field Operations architecture : Diller Scofidio + Renfro

USA

Project type_

Timeline_

reuse of an old train overpass.

1999 - Friends of the High Line is founded

by Joshua David and Robert Hammond, residents ofthe High Line neighborhood, to advocate for the High Line’s preservation and reuse as public open space.

Size_

January – July 2003 - First open ideas competition, “Designing the High Line”, solicits proposals for the High Line’s reuse. 720 teams from 36 countries enter.

$ 152 million

March – September 2004 - Friends of the High Line and the City of New York conduct a process to select a design team for the High Line through a restricted competition ( 4 design teams: terraGRAM, Steven Holl Architects, Zaha Hadid Architects, Diller & Scofidio).

April 2006 - Groundbreaking is celebrated on the High Line with the lifting of a rail track. The first phase of construction on Section 1 of the High Line begins.

2008 - Landscape Construction begins on Section 1, with construction and installation of pathways, access points, seating, lighting, and planting.

June 2009 - Section 1 (Gansevoort Street to 20th Street) opens to the public.

2010 (Projected) - Section 2 (20th Street to 30th Street) opens to the public.

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around 2,5 km Investment_

Client_ Friends of the High Line citizens association Funds_ both public & private City of New York has committed $ 112,2 million, Friends of the high line has raised $ 44 million (june 2009).

Friends of the High Line will be responsible for 70 percent of the cost of maintaining

Build in the thirties as an overpass for freight trains, the High Line runs for almost 2,5 km from 34th street along the banks of Hudson river, through the district of West Chelsea in the middle of the Meat Packing District. In 1999 the association of citizens - friend of the High Line - was founded, with a view of transforming what was by then no more than a neglected industrial ruin into a unique attraction: a great public promenade and park that could be used by the residents of New York and become a further element of attraction for tourists. In the view that its proponent wanted to generate, a balanced combination of conservation and transformation would have maintained the High Line in suitable conditions for a possible future reuse in the transportation sector, as well as being a container for cultural, commercial, residential and industrial functions.

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01 - High line in the 60’s

02 to 05 - High line before the intervention

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Since its founding in 1999, Friends of the High Line has held over two dozen community input sessions, to encourage neighborhood residents, business owners, and all interested members of the public to share their ideas for what the High Line could, and should, become. The High Line is a public park, built and maintained for the benefit of all New Yorkers and visitors from around the world. It represents a unique opportunity for members of the

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community to become involved in the planning of a major public amenity that will serve New York City for years to come.

Throughout the design process, community input has been central to the High Line project.

At the beginning, when the High Line was under threat of demolition, the question was simple: “Why do you think the High Line should be saved?� Answers varied, but it was clear that many in the High Line

community recognized the once-in-a-lifetime opportunity to create a public place unlike any other in the world. The design process began with an Open Ideas Competition, in 2003. All 720 entries were made available to the public, and response to the ideas helped shape the design process. You can still view all 720 entries into the 2003 Ideas Competition here. When the team of James Corner Field Operations and Diller Scofidio + Renfro was se-

lected by a jury to design the High Line, we recognized a great opportunity to work within the High Line community. During the initial phase of the design process, in 2004, frequent Community Input sessions helped shape the design team’s plans for the High Line. The design team presented new ideas publicly, then refined them in response to public input before incorporating them into the design.

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Inspired by the melancholic, unruly beauty of this postindustrial ruin, where nature has reclaimed a once vital piece of urban infrastructure, the new park interprets its inheritance. It translates the biodiversity that took root after it fell into ruin in a string of site-specific urban microclimates along the stretch of railway that include sunny, shady, wet, dry, windy, and sheltered spaces. Through a strategy of agritecture—part agriculture, part architecture—the High Line surface is digitized into discrete units of paving and planting which are assembled along the 1.5 miles into a variety of gradients from 100%

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paving to 100% soft, richly vegetated biotopes. The paving system consists of individual pre-cast concrete planks with open joints to encourage emergent growth like wild grass through cracks in the sidewalk.

The long paving units have tapered ends that comb into planting beds creating a textured, “pathless” landscape where the public can meander in unscripted ways.

The park accommodates the wild, the cultivated, the intimate, and the social. Access points are durational experiences designed to prolong the transition from the frenetic pace of city streets to the slow otherworldly landscape above.

ab. - land use diagram, be. - Sections and 3d views of the project

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high line park - new york

REUSEE NEW SOCIALITY THROUGH NEWW GREEN AREA REDEVELOPM SOCIALLLITY THROUGH COOPERATION NEWW GREEN AREA NEW SOCIALIT OPMENNNT REUSE NEW GREEN A REDEVELOPMENT OF THE OLD HIGH LI NEWW GREEN AREA NEW SOCIA SOCIALL LLINK LI SENSE OF COOMUNI OPERATION AT ATION REUSE SSENSE O 14

H COOPERATION SOCIAL LINK MENT OF THE OLD HIGH LINE NEW REUSE SENSE OF COMMUNITY TY COOPERATION REDEVELAREA SENSE OF COOMUNITY INE SOCIAL LINK REUSE REUS ALITY THROUGH UGH GH COOPERATION ITY REDEVELOPMENT EVELOPMENT M COOF COMMUNITY SOCI LINK SOCIAL 15

Relationship with the context _

+ high line runs along 2,5 km in the lower west side of Manhattan through Chelsea and West Village

Impact on site _

+ reuse of a pre-existing infrastructure + 0 volume built

Use of resources _

+ restoration of old parts - 2,5 km of concrete slabs

Street forniture quality _

+ very good design of the open spaces ++ “agri-tecture” - integration of architecture and green system

Quality of services _

+ new squares + public art exibition area

Financial and economics aspects _

+ great interaction between public & private + Friends of the High Line has raised $44 million by donors - $152 million is a high cost (around $3040/m2)

Transports _

+ 2,5 km of park “boulevard” + possible future reuse of the rails - 10 mt height street, difficult connections for disable persons

Cultural values _

+ aim to restore degraded infrastructure + new pole for social relations

Perceptual values _ Social aspects _

++ IOMBY - i own my back yard!

Local development _

+ reorganization of a wide area through a renewed urban axis + possibility of using this area for the Olympic Village for New York’s condidacy for the Olympics in 2012 (assigned to London)

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++ local citizens association + cooperation between public & private sector ++ sense of community + donors - solidality

02.Project_00

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The city of Como is characterized by a complex territorial morphology (fig. 01) that has marked the development and this peculiarity has also a strongly influence in terms of infrastructure.

- Access to Convalle from the South (fig.

02) is particularly critical since all traffic from the motorway A9 (MI, VA, MB) and from the hinterland (Cantu and the province of Como) conveys into a single node.

Morphology of the area further complicates the circulation by creating a “funnel” between the mount Goj and the Spina Verde park.

- From East (fig. 03), the traffic flow coming from BG, BS, LC and other major centers of the province of Como (Erba, Cantù ...) is channeled by a series of nodes (mostly roundabouts) in a single direction through the neighborhood of Lora.

It also has a significant difference in height of approximately 200 meters in less than 2 km route.

- Access from the North (fig. 04) represents , by a morphological point of view, the greater complexity since all the traffic from A9 motorway, Switzerland and the west side of Lake Como is forced to cross a gorge between the mountains and the railroad (west) and Lake Como (east) through a very narrow road (about 7 meters width).

Left page - aerial view of Como with the 3 main accesses marked Right page - clockvise fig. 01 - Morphologic scheme of the convalle fig. 02 - South access fig. 03 - East access fig. 04 - north access

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Aerial view of the project area

Plan of the project area - hospital, car park and railways

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The hospital dedicated to St. Anna was born in 1468 with the aim of bringing together in a single care facilities all the numerous small medieval hospitals spreaded around town. In 1932 it was transferred to its present site, built on land donated by the benefactor Teresa Rimoldi, after 7 years of work and after 23 years by resolution transfer of the seat. The complex consisted of twelve pavilions and one large

central block, built between 1965 and 1975 after the demolition of the church and exedra with fountain in front. Other additions were made of lesser importance in following years. Nowadays the hospital is going to be dismissed in favor of the new hospital of Tre Camini, straddling the municipalities of San Fermo della Battaglia and Montano Lucino.

Hospital area and its connection with the car park

Valmulini car park, which opened in February 2006, is located to the top of the valley, near the historic city and seat of the Hospital S. Anna. Its position is strategic due to the transfer of the hospital that will give back to the city a wide area to host some new public services.

the car park consists of 3 basic shapes: - The big six-story cylindrical container which hosts 636 parking spaces.

- The box that contains the services.

- The footpaths, including the suspended bridge over the railway and the tunnel buried under via Napoleona toward hospital.

Car park section - footpaths, services box and parking area

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PROJECT 0 - By a morphological point of view the area is strongly characterized as the point of intersection of two systems, the city sprawled in north-south direction, and the Spina Verde park in east-west direction. Another point of interest is the presence of the Valmulini parking garage (now mostly dedicated to the hospital) located near the intersection of two rail systems serving the city of Como, the FS line and the LeNord line.

The project proposal involves: 1 - the conversion of the last stretch of the LeNord railway, directed toward the center of Como, to realize a light rail system, allowing a fast connection between hinterland and city center, both in direction Como using the parking garage to leave

the vehicles and thus reducing the vehicular flow in the city center, and in the other direction, toward the area of the former hospital, which will hosts public services and be characterized as a new cultural and institutional center in Como.

2 - the realization of a small station along the FS railway that can replace the existing station a few kilometers further south, due to the proximity to the parking garage and to the new light rail system, hence creating a new interchange area between road and railway network, both national and international.

The masterplan comes from the comparison with both the morphology of the surrounding area (a downstream) and the parking garage.

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03.Analysis & SWOT

Institutions Vs Suburbs

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SOCIAL ANALYSIS - The neighborhood of Camerlata, where the project area is located, once characterized as an area of demarcation of the transition between the suburbs and the historic city, in recent decades has undergone significant changes due to the phenomenon of urban sprawling that has had strong repercussions from a social point of view. It has been seen the emergence of dense urban areas in which are condensed marginal social strata of the population (such as the elderly, poor, religious minorities, immigration etc. ..) without the support of institutional bodies

that could point out the presence of the institution over the territory. This has allowed the formation of uncomfortable situations and mechanisms of crime that are struggling to cope due to delocalization of bodies accomplishing that function. Since it has been planned to move S. Anna hospital before 2011, if there won’t be a change of direction in the administration of the neighborhood,the danger of turning into a no man’s land will become a thread really hard to solve because of the lack of institutional presence or public services and absence of policies for the mutual integration.

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Spina Verde national park Vs Urbanism

30

1919

Costipation 50’s

XX century Borders break 2000

Speculation

ENVIRONMENT ANALYSIS - The expansion of the city of Como during the twentieth century has been characterized by an initial phase of filling empty spaces in Convalle. At the beginning this was done in an orderly manner thanks to a strong regulator element of the urban system, the Roman walled city, once the valley was completely constipated have been appeared confused schemes caused by the typical patterns of sprawled urbanism.

As the town of Como is included within the natural boundaries, there have been phenomena of speculation related to the fact that the value of the built in green areas and in panoramic viewpoints over the city and the lake is greatly increased, as it is considered a luxury solutions. This situation was made possible by the weakness of the institutional tools for the protection of green areas and parks.

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Brownfields and abandoned sites

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Plan

m²

Current state

Redevelopment proposal

124´200 m²

The mental hospital was closed in 1999. It’s hosting for a provisionary time some public services.

New care center “citadel”.

15´400 m²

The forme military barracks now is almost dismissed and is used as a location for temporary art exhibition.

Social housing.

8´500 m²

Some abandoned factories and houses now squatted in.

Demolition and restoration of the continuity of Spina Verde park.

1´200 m²

Abandoned warehouses in front of the creek squatted in.

Demolition to create pedestrian path along the creek.

Other areas m²

60´000 m²

63´000 m²

17´000 m²

7´900 m²

4´750 m²

4´700 m²

Total m² available for urban redevelopment = 306´650 m²

REDEVELOPMENT ANALYSIS - since the town of Como has developed in patterns of constipation of the valley, there emerges a need to intervene in those few brownfield sites lying in state of disrepair or that simply were not discussed in depth and then that are still not exploiting their full potential. Some areas that were identified by their position and size can play a strategic role of opposition to the urban chaos that is the subject of the city of Como in recent decades. These policies should not focus only on increasing

the housing units or on increasing volume, a constant that has characterized the recent planning of the city, but must balance the old massive densification strategies, providing new services to citizenship and creating new spaces in a qualitative rather than quantitative criteria. Taking, for example, as a criterion the proximity to rail lines have been highlighted 10 areas which, if subjected to appropriate policies for redevelopment, could return more than 300000 square feet of space to develop useful services to the city.

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P

Road infrastructure Vs Parking Area

P P

P P P

P

P

P

P

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P P P P P P

P

P P

P P

P

P

P

P

INFRASTRUCTURE ANALYSIS - The main weakness of the 3 entrances to the town of Como is their location, nowadays too close to the historic city. As mentioned above (pag 31) it is clear a critical problem due to the morphology of the city but analyzing the situation from the standpoint of infrastructure is pointed out how the branching of the road network is based on a system, now overdated, of canalization and convergence of all the road nodes that are resolved only near the threshold between the suburbs and center of the historical city, a border now lost because of the urban sprawl.

In correspondence of these fits is then conveyed all traffic from the outside, thus creating a series of funnels input to the city. The policy of expansion of parking areas in Convalle has further magnified the problem by creating an attraction towards the center of the city causing huge traffic problems. The biggest problem is undoubtedly the lack of interchange areas outside the city (and now also the first portion of the periphery) between cars and public transport services.

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SWOT analysis Analysis categories

SWOT categories

Eco-ware Redevelopment Org-ware Environment Civic-ware Infrastructure Fin-ware Social Hard-ware

Ecoware - Presence of “Spina Verde� national park - Park as perceived value for the inhabitants

- Environment reclamation of brownfields - New interchange station = car pollution reduction - Urban renovation

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- Polluted soil - Funnel-effect: chaotic traffic system - Fracture of the natural borders: sprawled city

- Speculation: park as a luxury location

Orgware - Railway crossing - Pre-existences: railways, parking lot

- Complex drainage for ex industrial poles - New tools for environmental protection needed to avoid speculation

- Brownfields area size that allow huge transformations - New mobility = less traffic - New institutional area

Hardware - Urban renovation: added value - New infrastructures FOR the community - Brownfields area are often recognized by the community as topic area - Car pollution reduction

- State of decay - Traffic as a “psychological� problem

- New policies for borderline segments of the population - New institutional center = perceaving of institutional presence - Sub-communities = new sociality (i.e. cooperation)

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Finware - Possible reuse of low-cost large area - Presence of a parking lot - Micro-economic systems activated by the Sub-communities - Localization of the brownfileds close to infrastructure systems, no need of new infrastructures

- Strenghtening of existing infrastructures - Possible access to public funds due to reuse/developing of brownfields - Urban renovation

Civicware - Cooperation = new value for the community - Less road congestion

- Protection of the park = protection of the heritage - Recovery of the historic areas - Social renovation , new structures for new communities

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- High cost of environment reclamation - Congestion = high cost for future interventions

- Usage of public parking area decreased = less incomes - Specualtion : high selling price for houses

- Need to assimilate the change

- Coexistence between cultures and between different social strata

SWOT definitions Strenghts attributes of the person or company that are helpful to achieving the objective.

Weaknesses attributes of the person or company that are harmful to achieving the objective.

Opportunities external conditions that are helpful to achieving the objective.

Threats external conditions which could do damage to the objective.

SWOT strategies S - O strategy : Develop new methodologies capable of exploiting the identified strengths.

S - T strategy : Exploiting the Strengths to defeat the Threats.

W - O strategy: Eliminate Weaknesses to enable new Opportunities.

W - T strategy: Elaborate defense plans to avoid threats increase the external points of weakness.

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Strategy 01 - Exploiting the Strengths to defeat the Threats.

S Low cost for reuse

Presence of the parking garage

New laws for green areas

T Usage of public parking

protection

New micro-economics

area decreased = less incomes

New tools for urban planning

Social perceived value of the Economic speculation

green belt Reduction of the Broken Window Syndrome

Squat actions

New infrastructures FOR the community

Car pollution reduction Coexistence between cultures and between different social strata

New kind of strategies renovation

More organization Environmental speculation New sense of community

Environmental perceived value of the green belt New role of the parking garage = more incomes

Proximity of the rail lines

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Strategy 02 - Eliminate Weaknesses to enable new Opportunities

W

O

Congestion = high cost

New smart urban

for future interventions

planning

Suburban state of decay

Inhabitants are borderline segments of the population

No man’s land syndrome

New institutional presence

Suburbs become characterised place

New institutional pole as community connection

High cost for new

Car congestion reduction

infrastructures

Car pollution reduction

Fracture of the natural

New urban demarcation=

borders: sprawled city

New identity

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04.Project_01

Masterplan - 1:5000

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Student residences and apartments.

38 823 m2 xxx units

University 19 032 m2 xxx students

Province administration offices 9 866 m2 34% renovation, 66% new building

Underground parking 5 194 m2 768 parkings

Green spaces 28 940 m2 5 public parks + 5 courtyards

The new project is located in the place of the old hospital that has recently been moved in a new building. The proposal for the site is to find place for pioneer institutions to revive the area. Actually it is felt a strong need to interfere with the difficult situation that has been created within the quarter and it is likely that the leaving of the hospital as an institution will make the feeling of abandoning even worst. These institutions have been individuated as the province administration offices and a university building. Indeed, at the moment, the administration offices of the province are saturated and hard to reach and the university, that is shared with the city of Varese, is looking for new spaces.

The lay out tries, within reason, to be in accordance with the present situation. Two perpendicular main roads organize the whole intervention and start respectively from a junction on the road leading to the center of Como and from the entrances of the new and the old parking lots. These two roads divide the site into four parts, the two of them that face the road to Como are occupied by the province offices and the university; the former lies right along the road, the latter is separated from the road by a park. The province offices find place partly from a renovation of the administrative buildings of the ex-hospital and partly from a new building that links the three pavilions of the existing building. The university proposes itself as the main building and its entrance lies in front of a large buolevard. Behind the province offices there is an underground parking lot. The other two of the four parts of the site are in a quieter position and host the students residences and the apartments. These buildings are organized according to a network of secondary roads, they rise three floors overground and each couple of buildings encloses a semi public courtyard.

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University The building that hosts the university lies at the end of a large buolevard t hat underlines i ts i mportance. The building itself is o rganized on t hree f loors overground and one underground. It rises, along i ts l enght, f rom a two floors height to three floors h eight. The d istribution r uns a long a central corridor. I t serves w c’s, offices, s ervice r ooms, l ifts and deposites a t the north side a nd f aces a w inter garden a t the south side.

This inner garden i s a full height open space inside the building and separates t he corridor f rom the classrooms and the departments offices; t hey are connected b y a series o f passages. A t the end of t he building, a t the first two floors f inds p lace t he auditorium, while a t the third floor f inds p lace t he common study room. At the underground f loor t he library d eposit a nd general deposits are accomodated.

The c lassrooms and the main offices face southward and are well lighted, less important spaces face northward. The central corridor is lighted zenithally b y the trasparent cover of t he winter garden.

second floor - 1:2000

first f loor - 1:2000

ground floor - 1:2000

cross section - 1:2000

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Province offices Along the road, in the same place w here t he p roject sees the new province administration offices, there used to be the administrative p avilions of t he hospital. T hey are among t he p arts of t he ex-hospital that don’t need the environment reclamation of the ground. So it was thought t o reuse these pavilions, since the use doesn’t r equire a h eavy transformation o f the inner lay out. Over t he e xisting building a new building will provide the required s pace and will connect t he t hree pavilions.

bird view - 1:2000 In grey the renewed pa rts

Student r esidences a nd apartments The residential buildings are located in t he f urthest area from t he r oad, t o avoid its noise. The v olumes h ave three floors a nd a re o rganized around a courtyard. The ground f loor is meant to be for commercial use, but i t will also be used for services and reception. The p roject forecasts a flexible u se i n which, if t he s pace f or student r esidence will be more than enaugh it can be turned i nto conventional residential use.

bird view - 1:2000

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Construction costs Student residence The construction costs are calculated proportioning the price per square meter of a typical building with t he building of t he p roject, t he t wo buildings a re t he m ore similar as possible; the proportion has been made taking out the price of the reinforced concrete, which is the most influent, that has been calculate separately and more precisely.

- overground concrete volume = 20 757,60 m3 overground concrete price per cubic meter = 162,08 €/m3 - underground concrete volume = 3 459,60 m3 underground concrete price per cubic meter = 154,46 €/m3 - foundation concrete volume = 1 251,80 m3 foundation concrete price per cubic meter = 144,65 €/m3 - floor surface = 38 822,70 m2 price per square meter (concrete net) = 815,72 €/m2 total cost = 35 748 287,34 €

University The construction costs are calculated proportioning the price per square meter of a typical building with t he building of t he p roject, t he t wo buildings a re t he m ore similar as possible; the proportion has been made taking out the price of the reinforced concrete, which is the most influent, that has been calculate separately and more precisely.

- overground concrete volume = 2 562,20 m3 overground concrete price per cubic meter = 162,08 €/m3 - underground concrete volume = 1 024,80 m3 underground concrete price per cubic meter = 154,46 €/m3 - foundation concrete volume = 620,00 m3 foundation concrete price per cubic meter = 144,65 €/m3 - floor surface = 19 032,00 m2 price per square meter (concrete net) = 1 401,22 €/m2 total cost = 27 331 274,02 €

Roads The cost of the roads is simply calculated proportioning the price per square meter of a typical road with the surface of the roads of the project.

- surface of the roads = 12 774 m2 price per square meter = 77 €/m2 total cost = 983 598 € 48

Province offices The procedure to compute the construction cost of the province offices is divided into two parts. The first is about the renovation of the old buildings; in this case, since not all the existing volume will remain after the renovation, the demolition cost is computed over the existing floor surface, while the other prices are considered over the surface of the renewed building. The second part is about the new building that will be added. Here, as usual, the cost of the concrete is calculated separately. The remaining cost is calculated considering the cubic meters for the clading and considering the square meters for all the other costs.

- surface of the existing building = 4 146,00 m2 price for demolition per square meter = 23,10 e/m2 - surface of the renewed building = 3 350,00 m2 price for renewal (demolition net) = 830,90 €/m2 - overground concrete volume = 12 278,00m3 overground conrete price per cubic meter = 162,08 €/m3 - foundation concrete volume = 1 312,00 m3 foundation concrete price per cubic meter = 144,65 €/m3 - building volume = 33648 m3 clading price per cubic meter = 28,60 €/m3 - floor surface = 6516 m2 price per square meter (concrete and clading net) = 653,00 €/m2 total cost = 7 397 079,80 €

Parking lot The cost of the parking lot is simply calculated proportioning the price per square meter of a typical parking lot with the surface of the parking lot of the project.

- number of parkings = 384 price per parking = 9 229,00 €/unit total cost = 7 088 142,00 €

Park The cost of the park is simply calculated proportioning the price per square meter of a typical park with the surface of the parking lot of the project.

- surface of the parks = 28 940 m2 price per square meter = 29 €/m2 total cost = 839 260,00 €

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05.Cash Flow

Cash flow inputs

- Construction costs: - Student residence: - University: - Province offices: - Parking lot: - Park: - Roads:

38 823 m2 * 921 €/m2 = 35 748 330 € 19 032 m2 * 1 436 €/m2 = 27 331 284 € 9 866 m2 * 1 042 €/m2 = 10 276 426 € 768 units * 9 229 €/unit = 7 088 141 € 28 940 m2 * 29 €/m2 = 839 260 € 12 774 m2 * 77 €/m2= 983 598 €

- Total construction costs: - Correction facttor:

82 267 039 € 1,05

- Precautionary consstruction costs:

86 380 391 €

- Operating costs: - Student residence: - University: - Province offices: - Parking lot: - Park:

38 823 m2 * 17 €/m2 y = 19 032 m2 * 52 €/m2 y = 9 866 m2 * 42 €/m2 y = 768 unit * 299 €/unit y = 28 940 m2 * 3 €/m2 y =

659 991 € 989 664 € 414 372 € 229 632 € 79 262 €

- Total annual operating costs: - Correction factor:

2 372 955 € 1,05

- Precautionary annual operating costs:

2 491 602 €

- Incomes: - Student residencs: - Commercial spaces: - University: - Province offices: - Parking lot:

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25 882 m2 * 150 €/m2 y = 3 882 300 € 12 941 m2 * 180 €/m2 y = 2 329 380 € 19 032 m2 * 240 €/m2 y = 4 567 680 € 9 866 m2 * 300 €/m2 y = 2 959 800 € 768 u*2400 h/y*1 €/h = 1 843 200 €

- Total annual incomes: - Correction factor:

13 252 980 € 0,95

- Precautionary annual incomes:

12 590 331 €

- Investment - Construction cost: - IVA (tax on productive assets): - Investment including IVA: - Work progress: - Annual operating cost: - Maintenance costs: - Annual incomes:

year 1 18%

86 380 391 € 10% 95 018 430 € year 2 30%

year 3 32%

year 4 20%

2 491 602 € (2% of the total cost, distributed along the 30 year period) 12 590 331 €

- Subsidy: (10% of the total) 9 501 843 € received at the end of the construction, at the fifth year - Inflation rate:

3%

- Discount rate:

8%

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Cash flow [hundreds of â‚Ź]

1

2

3

4

5

6

7

8

9

10

11

12

0 0

0 0

0 0

0 0

0 0

0 2.254

0 0

0 0

2.804 0 3.981 6.785

2.888 0 4.134 7.022

2.975 0 4.291 7.266

3.064 0 4.454 7.518

3.156 0 4.621 7.777

3.251 0 4.323 9.829

3.349 0 4.501 7.849

3.449 0 4.684 8.133

0 0 0 0 0 0 0 14.596 15.034 15.485 15.949 16.428 16.920 17.428

Investment Maintanance costs

90.443 15.480

15.548 26.692 29.325 18.878 0 0 0 0

Operating costs IVA Other taxes Total costs

108.115 9.044 151.407 374.489

0 1.555 0 17.103

Subsidy Incomes

9.502 546.317

0 0

0 0

0 0

0 0

9.502 14.171

IVA Total Incomes

15.508 571.327

0 0

0 0

0 0

0 0

1.137 1.171 1.206 1.242 1.279 24.809 15.766 16.239 16.727 17.228

Net Cash Flows

196.837

Cash Flows

0 0 0 2.669 2.933 1.888 0 0 0 29.361 32.258 20.766

-17.103 -29.361 -32.258 -20.766 18.024

8.744

8.973

9.208

9.451

1.318 17.745

1.357 1.398 18.278 18.826

7.917

10.428 10.693

-17.103 -46.464 -78.722 -99.487 -81.463 -72.719 -63.746 -54.538 -45.087 -37.170 -26.742 -16.049

250.000

200.000

150.000

100.000

50.000

0 1

- 50.000

- 100.000

- 150.000

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2

3

4

5

6

7

8

9

10

11

12

13

14

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

0 0

0 0

0 2.613

0 0

0 0

0 0

0 0

0 3.029

0 0

0 0

0 0

0 0

0 3.512

0 0

0 0

0 0

0 0

0 4.071

3.552 0 4.872 8.424

3.659 0 5.066 8.725

3.769 0 5.191 11.573

3.882 0 5.396 9.278

3.998 0 5.608 9.606

4.118 0 5.826 9.945

0 17.951

0 0 0 0 0 0 0 0 0 0 0 0 0 0 18.489 19.044 19.615 20.204 20.810 21.434 22.077 22.740 23.422 24.124 24.848 25.594 26.361 27.152

0 27.967

0 0 28.806 29.670

1.440 1.483 1.528 950 0 0 0 0 0 0 0 0 0 0 0 19.391 19.972 20.572 20.565 20.204 20.810 21.434 22.077 22.740 23.422 24.124 24.848 25.594 26.361 27.152

0 27.967

0 0 28.806 29.670

13.507 13.857 14.217

14.588 14.408

10.966 11.248

8.999

-5.082

15.164 26.452 37.049 47.914

15

6.165

16

17

4.242 4.369 4.500 4.635 0 0 0 0 6.051 6.196 6.434 6.680 10.293 13.594 10.934 11.315

11.287 10.597 10.865 11.141

18

19

20

8.483

11.805 12.107

4.774 4.917 0 0 6.933 7.193 11.707 12.111

12.417

12.737

5.065 5.217 5.373 5.535 5.701 0 0 0 0 0 7.361 7.638 7.922 8.216 8.518 15.938 12.854 13.296 13.750 14.218

9.656

5.872 0 5.319 15.261

59.056 67.539 79.344 91.451 103.868 116.606 126.261 139.768 153.625 167.841 182.429 196.837

21

22

23

24

25

26

27

28

29

30

55

NPV = 5 512 000 € > 0 €

IRR = 8,6% > Discount rate = 8,0 %

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The two methods to evaluate the profitability of the investment are the discounted cash flow analysis, on which it must be checked a positive value of the net present value NPV, and the internal return ratio (IRR) method, whose value must be larger than the discount ratio, or opportuniy cost ratio. In both the methods used, a profitable investment is foreseen.

The discounted cash flow method considers the present value of the future cash flows. It is based on the concept that to own a capital today is better than to own a capital in the future; it is because this capital, if owned today, could be invested in government securities, which are the safest type of investment. So it is not enough to have a positive cumulative cash flow, since it could be that the net gain of a cumulative cash flow will be less then what an investor could gain investing the same capital in government securities.

That’s why the discount rate is also called “opportunity cost. The net present value (NPV) is the algebraic sum of the present values of the cash flows along the investment period. To make a future value a present value, or to actualize it, it takes to divide the future value by a factor greater than 1, which is the sum of 1 and the discount ratio, elevated to the n-th power, where n is the year number starting from the presnt year. So the further in the future a value is considered, the lower is its presend value. This explains why it is better to have a return of the investment as soon as possible. Indeed receiving a subsidy just after the end of the construction process is a great help for the profitability of the investment, since it worths more than in a further future.

The other method used is the internal return ratio (IRR). It is commonly used along the NPV approach. The internal return ratio is defined as the theoretical

discount ratio that makes the net present value equal to zero. The discount rate is a value that depends from external variables belonging to the market laws. The internal return ratio is the result of an equation which equates the net present value to zero, its variables are the datas of the investment.

Usually an investment has an initial cost which is repayed by future income; as said before, a capital today worths more than a future capital. Let’s assume an investment, like ours, where there’s an initial cost that is repayed after some years and at the end of the analyzed period it gives a positive net cash flow. Theoretically, having a discount rate equal to zero, the net present value would be the same as the algebraic sum of the future value; that would be the best situation for the investor, too bad it is impossible. Instead, having a high discount rate would make an investment largely dependent on the time, making future values much smaller when actualized; so the future incomes would be less worthy than the initial cost and the investment would not be profitable. At a certain point of equilibrium, there would be a value of discount rate that makes the investment neither profitable, nor profitless: that value of theoric discount rate is the internal return ratio. In some cases there are more values of internale return ratio that brings the net present value equal to zero; this happens, for example, when the cash flows are not regular and incomes succedes to outlays continously and alternately. In these cases the method should be discarded.

Aiming to the profitability of the investment it takes to check if the internal return ratio is larger than the discount rate. Mathematically it is the same as to check if the net present value is larger than zero. That is because using a discount rate lower than the internal return ratio would produce a positive net present value.

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06.Analytic Hierarchy Process

Analitic hierarchy process General goal

Sustainable developement

I level categories

II level categories

Environment

Hard-ware

Eco-ware

Projects

Society Institutions

Economy

Civic-ware

Option 0

Org-ware

Fin-ware

Option 1

Definitions - Hard-ware: communication and transportation system, manufactured capital.

- Eco-ware: quality of the natural and built environment, involving energy and material consuption.

- Civic-ware: social and civic infrastructurization.

- Org-ware: human and entrepreneurial capital, organized and oriented towards the more desireable direction - Fin-ware: financial support organization, possibility to activate economies of scale.

I level Goal: Sustainable developement Env Eco Env 1 4 Eco 1/4 1 S/I 8 5

S/I 1/8 1/5 1

x,env = 1,259 x,eco = 0,368 x,s/i = 3,419 S = 5,046

W,sd = 60

0,249 0,073 0,678

II level Goal: Environment H H 1 E 6 C 1/3 O 1 F 1/4

E 1/6 1 1/6 1/5 1/9

C 3 6 1 1/2 1/3

O 1 5 2 1 1/3

F 4 9 3 3 1

x,h = 1,149 x,e = 4,384 x,c = 0,803 x,o = 0,786 x,f = 0,315 S = 7,434

Goal: Economy H E C O F

H 1 1/3 1/3 1/4 6

E 7 1 2 1 8

C 3 1/2 1 1 7

O 4 1 1 1 8

F 1/6 1/8 1/7 1/8 1

x,h = 1,695 x,e = 0,389 x,c = 0,625 x,o = 0,500 x,f = 4,852 S = 8,052

Goal: Society/Institutions H H 1 E 1/2 C 7 O 6 F 1/3

E 2 1 4 3 1/2

C 1/7 1/4 1 1/2 1/3

O 1/6 1/3 2 1 1/3

F 3 2 3 3 1

x,h = 0,678 x,e = 0,608 x,c = 2,787 x,o = 1,933 x,f = 0,450 S = 6,456

W,env,eco,s/i=

0,154 0,589 0,108 0,106 0,042

0,211 0,048 0,078 0,062 0,603

W,I/II = W,env,eco,s/i * W,sd =

0,105 0,094 0,432 0,300 0,069

0,154; 0,211; 0,105 0,589; 0,048; 0,094 0,108; 0,078; 0,432 0,106; 0,062; 0,300 0,042; 0,603; 0,069

0,249 0,073 0,678

=

0,125 0,214 0,325 0,234 0,101 61

Options evaluation Goal: Hard-ware O0 O1

O0 1 2

O1 1/2 1

x,o0 = 0,707 x,o1 = 1,414 S = 2,121

Goal: Eco-ware O0 O1

O0 1 2

O1 1/2 1

x,o0 = 0,707 x,o1= 1,414 S = 2,121

Goal: Civic-ware O0 O1

O0 1 6

O1 1/6 1

x,o0 = 0,408 x,o1 = 2,449 S = 2,857

Goal: Org-ware O0 O1

O0 1 4

O1 1/4 1

x,o0 = 0,500 x,o1 = 2,000 S = 2,500

Goal: Fin-ware O0 O1

O0 1 1/2

O1 2 1

x,o0 = 1,414 x,o1 = 0,707 S = 2,121

E,o0,o1=

62

0,333; 0,333; 0,143; 0,200; 0,667 0,667; 0,667; 0,857; 0,800; 0,333

Score,0,1 = E,o0,o1 * WI/II =

0,333; 0,333; 0,143; 0,200; 0,667 0,667; 0,667; 0,857; 0,800; 0,333

0,125 0,214 0,325 0,234 0,101

Score,0 = 0,275 Score,1 = 0,725 Through the instrument of the analitc hierarchy process we are able to evaluate the relative effectiveness of two or more approaches towards a given goal. It is possible to decide the categories on which the options will be evaluated; these categories will be given a weight according to their importance in reaching the goal. It is also possible to have more levels of categories to balance the weights of each category, at the end the options will in any case be evaluated on the lower level of categories.

In our case the general goal is sustainable developement. The I level of categories is composed by the environmental, economic and social/institutional categories, which are quite general. The II level of categories have been chosen according to the SWOT analysis that has been carried. The categories chosen are: hard-ware, eco-ware, civic-ware, org-ware and fin-ware. Thus there is the presence of all the usual categories except soft-ware,

whose influence was not present in the SWOT analysis. The first part of the analitic hierarchy process is usefule to balance the weights of each category upon which every option will be avaluated. From this part we obtain a vector of many elements as the number of the categories of the lowest level. The second part focuses on the relative evaluation of each option in correspondance with the others. This gives us a matrix whose number of columns is equal t othe number of the categories of the lowest level and whose number of stripes is equal to the number of options. At the end it takes to multiply the matrix and the vector to obtain a vector of as many elements as the number of options. The values of these elements represent the score that each option gains according to the general goal that has to be reached. As it was easily foreseenable, the option 1, representing the new project, reaches a way higher score than the option 0, that represents the previous situation.

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07. External References

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References: paper AAVV, “ L’uomo e la città ”, Franco Angeli Editore, 2003 L. Mumford, “La cultura delle città”, Edizioni di comunità, 1953 AAVV, “Fondamenti di ecologia”, McGraw-Hill, 2003 A.Terragni, D.Libeskind, “Atlante Terragni”, Skira, 2004 Progettare_32 - aprile 2007 Area_79 - marzo/aprile 2005 Abitare_496 - 10 2009 Navigator_07 - gennaio 2003 web http://www.thehighline.org/ http://www.dillerscofidio.com/ http://www.fieldoperations.net/ http://www.thevillager.com/ http://en.wikipedia.org/ http://www.flickr.com/ http://images.google.it/ http://www.laprovinciadicomo.it/ http://www.cipd.co.uk http://thequalityportal.com

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