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  Regenerating neighbourhoods in partnership
– learning from emergent practices
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Instruments to get the private sector involved (4)

23. How can pilot projects encourage private sector involvement?

  • Pilots can be a means of developing trust – to show the private sector that the public sector can deliver what is expected of them.

  • They can create an example of how the private sector might co-operate on projects with the public sector in the future.

  • They can create a 'snowball effect' bringing about further regeneration as more and more companies come on board.

  • If there is a local development agency (e.g. intermediary as above), it can undertake 'lighthouse' projects which encourage private sector to invest in the neighbour-hood.

In Nordvest Copenhagen, Bispebjerg Retailers and Business Network is an example of how the business sector can take part in and gain influence on neighbourhood based regeneration. Before the establishment of the network, the businesses of the neighbourhood were only sporadically involved in the development of the neighbourhood. Since the establishment of the network in 2001, the network has been an active part of the regeneration process together with the residents and other actors of the neighbourhood. There is a mutual understanding between them and an informal partnership has been created. When a proposal from the neighbourhood is presented to the politicians of the Municipality, it is not only coming from the residents of Nordvest, but is now supported by 50 companies representing many workplaces.

In Berlin, the Boxion Network has been established in the context of neighbourhood management by subsidising the rent of start-up businesses of the creative sector for vacant shops which have not been used for many years, and forming a self-supporting network. During the three year funding period a network of 27 enterprises has been established, which continues to operate after the funding period by extending the network to other neighbourhoods in Friedrichshain. The district administration of Friedrichshain-Kreuzberg is adopting the support strategy for businesses from the creative industries by the establishment of a Round Table for design.

Care Malta is a Private-Public Company set up between Central Government and a private company involved in the care for the elderly. The scope of this company is to decentralise the present institutional system and delegate responsibilities in an effort to provide a sustainable health care service for the elderly. Such a set up is intended to help control Government’s expenditure in this sector, yet offer a better quality service for the elderly. On the other hand, the private company will make more profits from its current investment. From a planning point of view, this initiative is helping maintain the elderly population in the neighbourhood, reducing displacement and out-migration. Although still in its early stage, this initiative is gaining momentum, such that other companies and institutions are being attracted to team up with the Central Government and provide similar services.

Environmental Landscapes Consortium is a Private-Public Company set up in Malta in late 2002 between Central Government and a private consortium made up of a number of smaller companies involved in landscaping projects. The scope of this company is to enhance the quality of public open spaces whilst delegating the management of a section of the less-productive public sector to private investors. This company has the remit to enhance neighbourhoods and urban neighbourhoods making them more attractive both for locals and tourists. This initiative is also aimed to better Malta’s image and thus help increase tourism, considered a major economy generator on the island. Although more time is required to assess the benefits of this initiative, initial accomplishments indicate a promising future for this venture.

Business Improvement Districts (BID) are to be tested in Hamburg to improve conditions and motivate local businesses and landlords to improve their operations and to invest in their businesses and the neighbourhood. A BID is a temporary organisation – normally working for 5 years. The establishment of the individual BID needs the support of 2/3 of local businesses and landlords. It is funded by a special tax based on the commercial space (local businesses) or the value of the properties (landlords) – which is why the Hamburg pilot will require special legislation. Otherwise a BID is a self governing institution. It organises physical and organisational improvements, e.g. management of the neighbourhood, waste management, parking, street lighting, coaching of shopkeepers, marketing campaigns and events.

On instruments to get the private sector involved (3)  8. RECOMMENDATIONS

ENTRUST is a research project supported by the European Commission under the Fifth Framework RTD Programme and contributing to the implementation of the
Key Action 4; “City of Tomorrow and Cultural Heritage" within the Energy, Environment and Sustainable Development thematic programme
Contract n°: EVK4-CT-2001-20007