General factors and change

Since Lithuania regained its independence in 1991, major redevelopment has taken place in the capital Vilnius. The regeneration has concentrated on the Old Town – the historic city centre. In early 90s the Old Town became attractive for investors and for economically well off people. A renovation of the Old Town financed from the national and municipal funds started in 1998. It immediately led to the attraction of private investments to service and leisure businesses. The rapid change of the economy and character of life in the neighbourhood made an impact on its functional use – the growth in the number of shops, restaurants, hotels etc forced the decline of residential flats. The number of permanent residents in the Old Town dropped from 30,000 in the early 90s to 19,000 in 2002.

The booming real estate market in the Old Town left the city’s surrounding neighbourhoods with relatively minimal investors’ attention. Having concentrated public investments to the historic core neither Vilnius Municipality nor private developers attempted adequately to underpin regeneration of the Old Town’s closest environs. But in 2000-2003 the first feasibility studies and plans were prepared analysing regeneration and development opportunities in the Old Town’s border neighbourhoods.

Policy responses

Vilnius Old Town was inscribed upon the UNESCO World Heritage List in 1994. Implementing the international obligation to maintain and preserve the World Heritage Site, the Revitalisation Strategy of the Old Town was prepared and officially approved in 1997. The municipality founded the Old Town Renewal Agency (OTRA) in 1998 as a special neighbourhood management unit. The main goals of OTRA’s are facilitation of co-operation between public and private sectors, community consultation and engagement, development of international co-operation and sustaining equilibrium between urban conservation and development. OTRA prepares and co-ordinates with the municipal departments annual Old Town Renewal programmes which are co-financed by national, municipal and private funds.

The first stage of the Old Town Renewal Programme’s implementation was focussed on the physical upgrading of public spaces and on the repair of building exteriors, but has over the following years this changed towards engaging local community, primarily residents, in historic properties’ maintenance and the improvement of the living environment. OTRA commenced development of networks within local communities: residents, small businesses, and various groups of social, ethnic or other interests. Such networking is aimed on consolidating endeavours of all the parties towards economic growth and social cohesion.

The study neighbourhoods: Užupis and Paupys

Užupis and Paupys are situated next to the medieval city centre of Vilnius. Užupis was founded in late 16th century as a residential suburb at one of the main trade roads leading to Russia. Paupys neighbourhood is located just alongside Užupis – behind the river, and has grown as a craftsmen suburb since the 18th century. Industrial plants were constructed in Paupys after the World War Two as a part of the Soviet Union-wide industry network. Paupys factories' workers lived in Užupis and nearby neighbourhoods. Production stopped in early 90s after the collapse of the USSR and its economic patterns. Since then Paupys industrial facilities remain mostly unused, neglected and awaiting for conversion.

Key problems/challenges

Both neighbourhoods have experienced a decline in population over the last decade after the collapse of industries in Paupys. Dwindling industrial plants caused a radical decrease of jobs and a dynamic change of residents in Užupis and Paupys in the last 5 to 8 years.

The main urban difficulty of both neighbourhoods lies in a multitude and variety of economic and social problems. With investment in the Old Town, and a lack of infrastructure developments elsewhere, Užupis and Paupys were left without nearly any public investment in their very poor infrastructure as well as rundown housing stock until 2000. Apparent social and economic differences between the Old Town and these neighbourhoods impeded private investments and found the existing residential community in a socially disadvantaged position. This kept real estate prices lower than in the rest of the city centre and led to a change of local population and the arrival of a young middle-class generation.

Užupis has a newly emerged active artists’ community is making the neighbourhood known and attractive for the citizens and external visitors. A number of galleries, art actions and festivities now make the neighbourhood one of the most dynamic and colourful in the entire city, but it does not recompense existing social and economic differences with the rest of the historic city nucleus.

Progress

Užupis has a the potential to become a housing neighbourhood with a mix of various service functions, revitalised by public and private partnership into a balanced sustainable development neighbourhood. According to the master plan of Vilnius the Paupys neighbourhood is looking forward to a conversion of the former industrial fabric to a mixed function: residential, businesses and services neighbourhood with a picturesque natural and urban environment.

Small flats dominate in the residential neighbourhood of Užupis. Most of them are privately owned. Regrettably, until now there has been no concerted joint effort to refurbish infrastructure and housing stock. There are separate cases the repair of streets and infrastructure as well as buildings exteriors’ repair which slightly improve the image of the neighbourhood and stimulated an inflow of some new investors. But although this gradual physical renewal is growing it is accompanied by growing social disparities.

Since the year 2001 OTRA has carried out number of meetings and interviews with local stakeholders in order to raise public awareness and inspire private owners to establish their home owner associations. Following the Old Town’s Community Capacity Building Programme OTRA co-financed several houses’ exterior and inner yards’ projects. The Municipal Department of Economy undertook renovation in part of the main street and infrastructure.

Future plans

Currently plans for social facilities such as a community centre in the neighbourhood is being debated between OTRA and local NGO’s. The creation of community centres is a strategic priority in the city, and it is expected such a centre will be founded before 2005.