Old Cities New Assets

OLD CITIES NEW ASSETS public private cooperation in the rehabilitation of historic centres

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the urban heritage of Latin America

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historic centres

Salvador de BahĂ­a Brazil

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historic cities

Ouro Preto Brazil

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historic towns

Coro Venezuela

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public spaces

Cuzco, Peru

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monuments

San Francisco Convent Quito

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public buildings

San Juan de Dios Hospital Quito Ecuador

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office buildings

Recife Brazil Eduardo Rojas

commercial buildings

Pasaje Arzobispal Quito, Ecuador

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industrial buildings

Artigas Railway Terminal Montevideo Uruguay

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houses

Lima Peru

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Quito Ecuador

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Montevideo Uruguay

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the urban structure

Oaxaca Mexico

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downtown Quito, Ecuador

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centrally located assets

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the deterioration of urban heritage areas

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• Buildings loose their functions – High income households moving to the suburbs – Services and commerce follow

• Real estate assets loose market value – Area´s lack of attraction for households and enterprises depress real estate prices – Low prices discourage developers Eduardo Rojas

• The heritage areas are occupied by economic activities with low productivity – repair and craft shops – informal commercial activities – street vendors – warehouses

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• and by low-income households that find – cheap housing – easy access to jobs

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• the heritage areas are affected simultaneously by – Economic decay – Social disintegration – Physical decay

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The deterioration cycle Rents from real estate decrease Private investment ceases Land tax receipts decrease Public investment decreases Public spaces and private buildings deteriorate

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Quito Ecuador in the late 1980´s

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barriers for the rehabilitation of urban heritage areas

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• The coordination problem – Most owners will benefit from urban rehabilitation but they cannot do it alone – Developers face difficulties in consolidating land or acquiring building for rehabilitation and development

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• The regulation problem • (government induced deterioration)

– Restrictive land use plans – Uncertainty about large institutionally-owned properties – Environmental regulations on brown fields

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• Historic preservation plans promote urban decay when…

– designate a preservation area without consulting with the population and the owners – place the burden of preservation on the owners – restrict land and building uses – restrict adaptation and development of historic structures

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the urban heritage rehabilitation process

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Quito Historic Centre

Santiago West Downtown Area

Washington DC Penn Quarter

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the rehabilitation of urban heritage areas is a special case of the urban rehabilitation problem holds a variety of values for society present special public-private cooperation challenges

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• requires de coordinated use of the analytical and operational tools of – Historic preservation – Urban rehabilitation

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• to ensure sustainability – institutional arrangements must allocate costs, benefits and risks among stakeholders that are best suited to take them

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• key conditions for sustainable urban heritage preservation and development – involvement of all social actors in their most efficient capacity – heritage assets devoted to uses with high demand either for social services or commercial and residential activities

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• To ensure the sustainable use of rehabilitated assets – Revitalise the local economy – Attract new residents

• Areas under rehabilitation must offer – Investors: opportunities as profitable as those of the suburbs – Residents: amenities unique to the area or comparable to the suburbs

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• Create attractive conditions for enterprises – Good infrastructure – External economies – Favourable regulatory environment

• Reduce the real or perceived risk by investors and households – – – –

Mitigate or eliminate negative externalities Organise the demand Undertake demonstration projects Subsidise desirable developments

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• conditions for launching urban rehabilitation programs – Ample consensus among social actors – Long term vision for the area • Strategy • Urban project

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• conditions for sustaining urban rehabilitation programs – involvement of all social actors – public-private cooperation to • create new economic activities • bring in new residents

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• To ensure maximum effectiveness the institutional arrangements must ensure that interventions are – Coordinated to tackle all areas of concern – Executed in the correct sequence – Have sufficient scale to modify existing trends

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Preservation and Development of Historic Centres The Experiences of Ten World Heritage Sites

Inter American Development Bank Eduardo Rojas

•  Study of preservation and development at 8 historic centres of mid-size cities included in the World Heritage List of UNESCO

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Oaxaca, Mexico

Quito, Ecuador

Salvador, Brazil

Valparaiso, Chile

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Edinburgh, Scotland

Porto, Portugal

Siracusa, Italy

Verona, Italy

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historic centres with different levels of conservation‌

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some stylised facts about the preservation and development of eight of the urban heritage sites

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the population declines more in the less preserved centres ‌ 
 (last ten years)

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and they have a more unbalanced age structure‌ 


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than the better preserved historic centres.


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historic centres have more renters than the rest of the city‌


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and more low-income households‌

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with less residential land uses‌

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than the better preserved centres‌

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in spite of the investments made‌

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that usually take a long time to come by‌ Quito Historic Centre Rehabilitation Timeline

1940

1950

1960

1970

1980

1990

2000

2010

Several Preservation Plans

Historic Preservation Fund (FONSAL)

Quito Historic Centre Corporation

Quito Urban Development Company

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with the late arrival of the private sector‌ Quito Historic Centre Rehabilitation Timeline

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and that are difficult to sustain...

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conditions for successful urban heritage preservation

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• conditions for launching urban rehabilitation programs – Ample consensus among social actors – Long term vision for the area • Strategy • Urban project

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• conditions for sustaining urban rehabilitation programs – involvement of all social actors – public-private cooperation to • create new economic activities • bring in new residents

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• conditions to ensure maximum effectiveness the institutional arrangements must ensure that interventions are – Coordinated to tackle all areas of concern – Executed in the correct sequence – Have sufficient scale to modify existing trends

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consensus and involvement of all social actors

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the communities must value their heritage…

• Economic values – Use values • Direct use – Non consumption – Consumption • Indirect use

– Non use values

• – – – – –

Socio cultural values Aesthetic Spiritual Social Historic Symbolic

• Existence • Inheritance • Philanthropic Eduardo Rojas

move from unidimensional valuation…

• Economic values – Use values • Direct use – Non consumption – Consumption • Indirect use

– Non use values

• – – – – –

Socio cultural values Aesthetic Spiritual Social Historic Symbolic

• Existence • Inheritance • Philanthropic Eduardo Rojas

to a more multidimensional valuation…

• Economic values – Use values • Direct use – Non consumption – Consumption • Indirect use

– Non use values

• – – – – –

Socio cultural values Aesthetic Spiritual Social Historic Symbolic

• Existence • Inheritance • Philanthropic Eduardo Rojas

...and the different actors must be actively involved‌

Promoters The elite

Beneficiaries Local community Tour operators

Financing Central Government Private philanthropy

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Organisations of the civil society

International organisations

Promoters

Scholars

Central government

Students

Regional government

Individuals Community organisations

Beneficiaries

Financing

Local government Real Estate Investors

Tourists Enterprises

Households Eduardo Rojas

Oaxaca, Mexico

Quito, Ecuador

Salvador, Brazil

Valparaiso, Chile

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Oaxaca, Mexico

Quito, Ecuador

Salvador, Brazil

Valparaiso, Chile

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Brazil Salvador de Bahia

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first phase

city blocks selected for rehabilitation

second phase

third phase

integrated rehabilitation rehabilitated blocks executed and financed returned to owners by the government

cultural animation financed by the Government of the State

operation and maintenance financed by the Government of the State

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Salvador de Bahia, historic centre, public investments in city blocks and buildings 1992-2006

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Promoters The elite

Financing State Government Beneficiaries City and local community Tour operators

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institutional arrangements

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• To ensure maximum effectiveness the institutional arrangements must ensure that interventions are – Coordinated to tackle all areas of concern – Executed in the correct sequence – Have sufficient scale to modify existing trends

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coordination

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Oaxaca, Mexico

Quito, Ecuador

Salvador, Brazil

Valparaiso, Chile

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Valparaiso World Heritage Site

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INTEGRATED HERITAGE REHABILITATION AREAS (EPIS)

ENTORNO BARRIO FINANCIEROCº ALEGRE

ENTORNO PLAZA ENTORNO DE LA JUSTICIA – BARRIO PUERTOCº CORDILLERA Cº STO DOMINGO

ENTORNO PLAZA ADUANA Cº ARTILLERÍA

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sequence by organising interventions in time

Year 1

2

3

4

5

Infrastructure Public spaces Municipal services Promote new economic activities Bring new residents Private investment in new activities

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INTERVENTIONS

1

STREET IMPROVEMENTS

2

PUBLIC SPACES IMPROVEMENTS LOWER TOWN

3

AVENUES AND STREETS PEDESTRIAN WALKWAYS SQUARES PEDESTRIAN WALKWAYS PRIVATE FUNICULARS

FUNICULAR IMPROVEMENTS

PUBLIC FUNICULARS FNICULARS TERMINALS

4 5

PUBLIC SPACES IMPROVEMENTS NEIGHBORHOODS

PEDESTRIAN WALKWAYS SMALL PUBLIC SPACES COMMERCIAL ENDEAVOURS

HERITAGE REHABILITATION FOR PRODUCTIVE USES

CULTURAL COMMUNITY DEVELOPMENT

6

HOUSING AND TENEMENT IMPROVEMENT

7

HOUSING REHABILITATION

8

REHABILITATION OF EMBLEMATIC BUILDINGS

HOUSING REHABILITATION TENEMENT REHABILITATION

HOUSING RECONVERSION

EMBLEMATIC BUILDINGS

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URBAN INTERVENTIONS TIME FRAME MEJORAMIENTO DE VIALIDADES

MEJORAMIENTO

ESPACIOS PÚBLICOS-PLAN

RECUPERACION INTEGRAL DE ASCENSORES

2006 AV. BRASIL

( 4 CUADRAS)

Cº ARTILLERIA Cº STO DOMINGO Cº ALEGRE

Cª. STO. DOMINGO Cº. TORO Cº. ALEGRE Y CONCEPCIÓN

RECUPERACION DE

BARRIO PUERTO ADUANA PLAZA JUSTICIA BARRIO FINANCIERO

ESPACIOS CON FINES PRODUCTIVOS, CULTURALES Y COMUNITARIOS

MEJORAMIENTO

Cº STO. DOMINGO Cº ARTILLERIA Cº CORDILLERA

REHABILITACION

Cº STO. DOMINGO Cº ARTILLERIA Cº CORDILLERA

DE VIVIENDAS Y CONVENTILLOS

DE VIVIENDAS MINVU

RECUPERACION

DE EDIFICIOS DESTACADOS

2008

2010

CALLES

ESMERALDA, PRAT, COCHRANE, AV. ARGENTINA Y AV. BRASIL (12 CUADRAS)

CALLES

TOMAS RAMOS, CANAL Y CASTILLO

PLAZA ADUANA PLAZA SOTOMAYOR

ASC. EL PERAL

MEJORAMIENTO

ESP. PÚBLICOS VECINALES (SENDAS-MICROPLAZAS)

2007

EDIFICIO SEVERIN

ASC. STO. DGO ASC. ARTILLERIA ASC. R. VICTORIA ASC. BARON

ASC. CORDILLERA ASC. CONCEPCION ASC. POLANCO

Cª. ARTILLERIA Cº. CORDILLERA

EDIFICIO MERCADO PUERTO

P. LA MATRIZ BIBLOTECA SEVERIN

EDIFICIO ADUANA

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Management of urban areas in Chile. Assignment of responsibility

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Treasury

IDB

Interior Directorate Treasury Interior Municipality

Project Execution Unit Local Government

Municipality

Forestry Corporation

historic preservation

Central Government

environment

Urban Development Service

Regional Government

public spaces Eduardo Rojas

• Institutional arrangements that led to: – Continuos shifts in priorities – Decoupling of investments • loosing coordination and sequence • loosing focus on the integrated heritage areas

– Shifting community involvement in the program

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sequence

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Lessons learned from the cases studied indicate that there is a preferable sequence in the implementation of interventions for the conservation and development of urban heritage areas

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initial stage deteriorated urban heritage assets




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initial phase public investment infrastructure improvement

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improvements to
 public spaces

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public rehabilitation of emblematic buildings

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advanced phase partnerships
 rehabilitation of heritage buildings in partnership with 
 the private sector

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final phase
 private intervention
 building rehabilitation

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sustainable state

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decision sequence in the conservation process for urban heritage traditional

Building s value identified by conservation experts Conservation plans prepared by specialists

proposed

Assets value identified by conservation experts Study of the demand for space in this type of asset

Funding secured from different sources Conservation works Executed Use for the building found

Partner for conservation and sustainable use secured Conservation works executed with mixed funding Assets under sustainable use and well-maintained

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scale

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Oaxaca, Mexico

Quito, Ecuador

Salvador, Brazil

Valparaiso, Chile

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Historic Centre Quito

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First Phase Public Investment In Quito Historic Centre

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Programmed investments




US dollars (millions)

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• Public investment – Street improvements – Parking garages – Cultural facilities in historic buildings – Social sustainability • Low-income housing • Markets • Public safety

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• Public private investments – Rehabilitation of buildings to demonstrate the feasibility to install and operate • Commerce • Residences • Offices • Recreational activities – The Historic Centre to offer a unique mix of services to compete with other centres in the city

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Quito Historic Centre Corporation • Mixed Capital Society – 90% of shares owned by the Municipality – 10% owned by the Caspicara Foundation

• Board – 12 members • 7 members come from the private sector • 5 members come from the public sector

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• Capacities – Operate as real estate developer – Work in association with private sector • Land owners • Real estate developers • Cooperatives

– Municipality can contract works directly with the Corporation

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• Instruments – – – – – –

Infrastructure rehabilitation Improvement of public spaces Regulation of street commerce Rehabilitation of public buildings Pioneering commercial investments Social sustainability program • Low income housing • Community outreach • Public safety Eduardo Rojas

sources of funding Central Government

Municipal budget

Monuments

Infrastructure

IDB Loan

Public spaces

Ministry of Housing

Private sector

Social housing

Commercial real estate

types of investments

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Fundaci贸n Caspicara

Promoters Central government

Residents

Citizens of Quito

Beneficiaries

Financing

Municipality

Real Estate Investors

Tour operators Households

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in sum

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• There are triggering factors for the preservation of urban heritage preservation – Community concern for urban (heritage) decay – Strategic objectives for long term city development – Strong political leadership

• There are contributing factors – Favourable sector policies • Housing • Urban transport

– Developed financial markets – Strong consensus among actors Eduardo Rojas

• The rehabilitation of urban heritage areas brings several benefits beyond the preservation of cultural assets – More intensive use of public assets – Better use of private assets – Centralisation of activities • Reduced cost of urban development • Reduced transportation costs

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• Gentrification – Sign of success – Damage some residents • Low income renters • Low productivity economic activities

– Mitigation measures • Retain rental space for low income households and economic activities • Assist low income owners

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•  when all social actors are involved in their most efficient capacity and the heritage assets are devoted to uses with high demand either for social services or commercial purposes the rehabilitation process results in the sustainable preservation and development of the urban heritage Eduardo Rojas

S達o Cristobal, Brazil

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