New tools for integrated urban development ITI and

New tools for integrated urban development: ITI and CLLD in national context Iván Tosics Metropolitan Research Institute Budapest EUKN Policy Lab Romania “Integrated approach in urban planning and development” Bucharest 11 October 2013

URBAN CHALLENGES ARE LINKED • The main challenges of the upcoming decades: – demographic (ageing) – economic (growing global competition), – environmental (less renewable energy sources, more carbon produced) – socio-spatial (migration with growing inclusion problems, growing inequalities within society) • All these challenges have to be handled AT ONCE • The „best” solutions create huge externalities (negative outcomes) regarding the other challenges 2

INTEGRATED ANSWERS ARE NEEDED ON THE LEVEL OF URBAN AREAS • Instead of mono-sectoral („best” for the given sector) interventions integrated answers are needed • The smart, sustainable and inclusive aspects of growth have to be linked to each other • It is the cities, the level of urban areas where the different aspects can best be linked to each other • However, there are strong interests against integrated planning: – „opportunity planning” in east-central European countries (subordinate urban development to investors) – „revanchist regeneration” (making inner cities attractive in order to maximize tax incomes) in western Europe – free market led development without planning and public control (Spanish and Irish examples) 3

CRISIS MAKES INTEGRATION NOT EASIER Novelties of the present situation: • for a number of years there will be no economic growth – and even later the present form of economic growth will be questioned as sacrifying the scarce environmental resources and increasing socio-spatial inequalities • the capacities of the public sector will be – for long time – much more limited than so far • the tolerance level of the people (regarding inequalities and democracy deficits) is sharply decreasing 4

TYPES OF INTEGRATION POLICIES • between policy areas (horizontal, in terms of policy management), coordinating the policy fields • between neighbouring municipalities (territorial, in terms of geography), allowing for cooperation in functional urban areas • between different levels of government (vertical, in terms of government), allowing for multi-level governance 5

INTEGRATION BETWEEN POLICY AREAS • Avoiding silos • All sectoral decisions should be controlled regarding their effects on other sectors • Needs strong initiatives: – policy schemes (national, regional or local) for integrated planning; – appropriate tools (for investments, for management); – special organizations managing the integrated process; – citizen participation Integrated development might require sub-optimal solutions along each dimension in order to reach good balance between all dimensions 6

EXAMPLES ON POLICY INTEGRATION • Neighbourhood regeneration: improving the physical environment with measures helping local people into jobs and promote social and cultural cohesion • Neighbourhood management: to bring local services together to address long-standing problems in the area. Participation of local communities is crucial. 7

COORDINATION BETWEEN MUNICIPALITIES Cooperation between neighbouring municipalities in functional urban areas is crucial to • avoid the negative effects of competition (investments, services, taxes) between local authorities • help to integrate policies – economic, environmental and social challenges can best be addressed at once on broader urban level • reach the economy of scale – size matters in economic terms and in services However, functional urban areas are undefined and usually weak in administrative-political sense 8

CITIES (million) Admin city MUA/city FUA/city London 7, 43 1, 1 1, 8 Berlin 3, 44 1, 1 1, 2 Madrid 3, 26 1, 5 1, 6 Paris 2, 18 4, 4 5, 1 Budapest 1, 70 1, 2 1, 5 Vienna 1, 60 1, 6 Lisbon 0, 53 4, 4 4, 9 Manchester 0, 44 5, 0 5, 8 Liverpool 0, 44 2, 7 5, 1 Katowice 0, 32 7, 1 9, 5 Lille 0, 23 4, 1 11, 3 42. 63 mill 1, 7 2, 3 … AVERAGE (40 cities) Sources: ESPON, 2007: Study on Urban Functions. ESPON Study 1. 4. 3 IGEAT, Brussels. Final Report March 2007 www. espon. eu City population: http: //www. citypopulation. de

COORDINATION BETWEEN GOVERNMENT LEVELS • Multilevel governance means sharing responsibilities between different levels of government • Rationale: higher levels of government are concerned with outcomes at the lower level, agreeing in co-assignment of responsibilities • Cities can strive for more integration, BUT cities can not achieve the most important goals without regional and national frameworks 10

EU level interventions are required for integrated urban development • For the success of EU 2020 integrated planning, green and social economy strategies are needed on the level of functional regions. • This new approach needs policy guidance and financial support from the EU, initiating crosssectoral and cross-territorial planning on the functional region level.

EUROPEAN COHESION POLICY 2014 -2020 Integrated urban development is the key to achieve the EU 2020 targets. New EU tools: • CLLD: people-based integrated interventions in smaller municipalities and on neighbourhood level in larger cities (10 -150 th population) • ITI: place-based integrated approach in larger cities, potentially on metropolitan level • Horizon 2020: „spatially blind” innovative economic actions in large urban areas Urban policies in integrated way 12

Integrated sustainable urban development Example: Member State A Regional ERDF OP I Total allocation for ITI at least 5% of Member State’s ERDF, delegated to cities National/sectoral ERDF OP ESF OP City 3 City 1 City 2 City 3 City 25 City … CF OP + additional ESF and CF, if appropriate

ITI MODELS IN DIFFERENT COUNTRIES Some initial and informally collected ideas about the national understanding of the Commission proposals (as part of the forming Partnership Agreements) in the following countries: • France • England • Germany • Poland 14

FRANCE • Natonal Priority is to earmark min 10% of regional OP of ERDF and part of ESF to urban deprived neighbourhoods, either as ITI or urban integrated development axis. • Contrat de Ville: contract will be signed between the central state and the intermunicipal bodies of urban areas (co-signed by regional and departmental authorities). The 7 years contract will concentrate on deprived areas. • The 27 regions will become the MA, cities will get the possibility of global grant, based on the contract. 15

ENGLAND • In England ERDF, ESF and part of rural will be given to LEP areas, which have to do integrated programme. Almost no sectoral programmes will exist, the whole money will be devoluted to the LEPs. • Few months ago 28 city deals were signed. In the future the deals will be between government and LEPs. Tension between LEPs and municipalities: each LEP is developing a Wider Growth Plan (integrated territorial development strategy). • In practice 39 ITIs will be prepared (not be called ITI). The LEPs and their partnes will ’select’ a package of activities and projects, this package will be approved by the national PMC; the MA will then only do a technical appraisal. 16

GERMANY • regional policy is the task of the 16 Länder, OP-s and MA-s exist on Länder level • Länder opposed the ideas of compulsory delegation: only the minimum level of delegation towards the cities will be applied, they will have some say in the selection of projects but will not get global grants • in most Länder no ITIs but priority axes will exist • the urban dimension will be applied in each eastern Land but not necessarily in the more developed western Länder • the national programme „Soziale Stadt” still exists and it also uses co-financing from ERDF money 17

POLAND • The Government requires ITI associations to be formed between the 16 regional capitals and the municipalities belonging to their functional urban areas • The Government provided lists of settlements – at least half of the settlements should become part • The municipalities within the FUA, which do not join the ITI, will have a more difficult access to EU funds in fields, where the ITI will have projects • The association creates a Board (to be headed by the mayor of the core city) which has to prepare integrated strategy • The carrot EU funds in the form of an ITI seems to be efficient in the Warsaw Functional Area (Franz Thun) 18

ITI – Teritorial definition of the Warsaw Functional Area § surface: 2. 932 sqkm. (8% of the surface of the region) § population: 2. 656. 917 inhabitants (50, 3% of the population of the region) § 40 communes – including Warsaw (within 11 counties)

Results of the survey to the communes (July 2013) • 33 Municipalities answered, all ready to join • 28 preferred the legal form of an agreement between municipalities • Economic development, urban regeneration and digitalization of schools, transport infrastructure main topics for cooperation • 2/3 of municipalities accept participation in management cost • 4/5 support coordinating role of Warsaw 151, 8 mio Euro for the Warsaw Function Area within the Regional Operational Programme

Inititial steps (2013) • Submission of a project concerning the programming of the development of the Warsaw Metropolitan Area • Project brain storming by 5 municipalities and the Mazovian Planning Office • Maj and June meetings with all municipalities of the Warsaw Functional Area concerning the programming project • June, proposal by the City of Warsaw for the future ITI for discussion • Survey in July • 13 of August, signature of a joint declaration of 33 municipalities of the Warsaw Functional Area concerning the cooperation within the future ITI • August, designation of an ITI coordinator in each participating municipality

Future steps • August- September, preparation of a project list for the wojwodship contract • September 2013, creation of an ITI association by all participating municipalities for the Warsaw Functional Area, start of work on the development strategy for the area to be accepted by all participating municipalities • September – November 2013, discussion of the strategy with the Ministry of regional development and the regional management authority • October 2013, resolutions in all municipal councils concerning ITI • November 2013, acceptance of the strategy by the Ministry and the regional management authority, formal agreement between the ITI association, the Ministry and the regional management authority • January 2014 ITI ready for implementation

SUMMARY OF NATIONAL REACTIONS ON ITI • Mostly oriented towards large cities (except for England) • France and Poland: explicit requirement to include the FUA level • Delegation to metropolitan associations strong in Poland, in England (to the LEPs), no delegation in Germany • Thematically broad in England Poland, narrow (deprived areas) in France and Germany • Legal form ITI or urban axis 23

A paradigm shift. “From the “terroire guichet” to the “territoire projet. ” Strategy Territory Partnership › From “territoire guichet” – administrative boundaries – deficits or gaps - management body redistributes grants › To “territoire projet” – What is our project for the future? – who (which allies) do we need to achieve it? – what is the appropriate (functional) area over which to achieve it? CLLD in cities. Monday, 21 May 2012 I Page 2

Community-led local development shall be: (Art 28 Common Provisions) › Focussed on specific sub-regional territories › Community led by local action groups composed of representatives of public and private interests where at the decision making level neither the public sector nor any single interest group shall represent more than 49% of voting rights › Carried out through integrated and multisectoral area based local development strategies › Designed taking into consideration local needs and potential and include innovate features in the local context, networking and where appropriate cooperation CLLD in cities Monday, 21 May 2012 I Page 2

„Predecessors” of urban CLLD-s › Between 1994 and 2006 the cohesion policy supported › two rounds of the URBAN Community Initiative which focussed mainly on deprived urban neighbourhoods with an average population of 28 000 people Since 2007 URBACT II has involved around 500 cities in approximately 60 thematic exchange and learning networks. Each city that takes part in an URBACT II network has set up a broad multi-stakeholder local support group, which develops a local action plan. Although URBACT’s local support groups are not designed to implement the local action plan and these are not automatically funded; many could be the seeds of CLLD partnerships and strategies. Extending the partnership I Monday, 21 May 2012 I Page 2

Possible types of CLLD in cities › Small areas within cities. Deprived urban neighbourhoods and historic centers but also other types URBACT examples: REG GOV, SURE, CTUR, REDIS, LINKS, REPAIR, HERO › Smaller cities and their surrounding rural areas URBACT examples: Esimec, Creative Clusters…. . › Target group approaches URBACT examples: My Generation, Romanet, Active Age… › Thematic approaches URBACT examples: Active Travel, EVUE, CASH, SUITE, HERO (ESIMEC + CC) Conditions: strong involvement of community of users, focussed but integrated strategy, appropriate (functional) areas - larger if justified. Possibility of dealing with urban-rural links for theme or target group. CLLD in cities. Monday, 21 May 2012 I Page 2

Possible configurations of CLLD in urban areas Extending the partnership I Monday, 21 May 2012 I Page 2

Areas within the city: Berlin › Berlin, federal Socially Integrative City program: between › › › 1999 and 2009 the city used € 83. 5 million of ERDF, 35. 1 million from the federal programme and 83. 5 million from the budget of the state of Berlin. 34 neighbourhoods are included in the programme based on socio economic indicators. Areas vary in size, with the largest of around 22000 people. Across Berlin the 34 areas cover a population of 391 968 compared to 3. 5 million for Berlin as a whole. A neighbourhood management office is set up in each area. Mostly these are procured from the private sector through open tender processes. The neighbourhood management team works with a neighbourhood council to develop a strategy and action plan for the area. Participative budgeting approaches to bring in project ideas. Extending the partnership I Monday, 21 May 2012 I Page 2

How to achieve integrated local development in post-socialist cities? Overwhelmingly private housing, weak welfare policies and no tradition of civic organizations (weak social capital) Integrated development can only be achieved with placebased approaches and special methods for inclusion No tradition in direct involvement of population into planning and decision making. Second best solutions have to be found, with intermediary institutions: • in deprived areas with substantial public ownership intermediary management organization is needed (Rév 8) • in deprived areas with overwhelmingly private ownership condominiums are the tools to involve residents (Ady)

CASE 1: a socially sensitive urban regeneration programme in Budapest: Magdolna quarter • Strategic plan of district VIII for fifteen years (2005 -2020) • Phases of interventions in Magdolna: – Phase I (2005 -2008): jointly funded by the Budapest and the District 8 th Municipalities, 2. 7 million eur – Phase II (2008 -2011): ERDF funding (ROP), 7. 2 million eur – Phase III – (2013 -onwards) ERDF, 13 m eur total investment • Integrated programmes: both physical and soft projects (housing is compulsory element)

Main pillars of the Magdolna programme The aim of the programme is not to turn Magdolna into a rich area, but terminate deep poverty. • Urban renewal: special programme for the tenants – To involve them into the renewal • Programme for creating communities – Create a community house • Public space program – Improve the central square (Greenkeys, Interreg IIIB) • Educational program, safety program – De-segregate the school (from 98% to ‘normal’ share of Roma kids)

1. Management structure of social urban renewal Mayors offices are too bureaucratic and thematically focused (silos) • RÉV 8, as publicly owned interdisciplinary company, has been established outside the office to develop long-term integrated solutions However, RÉV 8 has gradually lost decisionmaking power over the years, politicians intervened into all decisions Conclusion: politicians should keep only strategic decisions while devolving everyday management; financing should be lomg-term

2. Public participation • First phase: 2 mill eur, working with 4 publicly owned buildings, making the cellar areas clean (own work of residents taken into account in the new rent level). • Second phase: 7, 4 mill eur, renovation of 16 publicly owned buildings, support to 7 condominiums. • Third phase: 13 mill eur, 28 programmes, only one (public space renewal) will be implemented with the people together – in all others the municipality found it too risky to accept real involvement of people Conclusion: the more EU money, the less opportunity for participatory planning (under present national SF rules)

3. The level of improvements • Second phase: all flats got WC and shower, rent increased 2 -3 times and utility payments even more. Tenants did not want to move back. • The higher is the quality of renovation, the less is the chance to keep the original residents as the national social safety net has been cut drastically Conclusion: for the success of social renewal the national social benefit system has to follow the increase of the housing costs of original residents

CASE 2: Csepel Ady project in Budapest - Csepel: one of the 23 districts of Budapest - Ady estate: appr. 5000 inhabitants in 2064 apartments - Ten 10 storey high buildings, 5 cooperatives and 5 condominums (94% of the units owner occupied) - Social composition: one of the least prestigious (however, not deeply marginalised) estates in Budapest. - Aim: to stop the further degradation of the estate and in parallel to improve the social position of the inhabitants (not crisis management but PREVENTION)

Project content - Project budget: 4, 5 million Eur (2, 85 million ERDF) - Project duration: Oct 2009 - June 2012 - Partial renovation of 7 large prefabricated residential buildings (3 buildings rejected to participate) - Renewal of the public spaces and public buildings - Upgrading of the commercial buildings - Creation of a new Community Centre - ESF types of measures (vocational trainings and community building activities)

Results of the Ady project - Energy saving: 6 -40%, resulting in 10 -100 euro saving/year/flat - The decrease of real estate prices slightly moderated - 45 inhabitants got certificates of vocational training (46% of them employed over 6 months) - Attendance of the new community centre well above the expectations

Key findings – ERDF with housing element provides opportunity for integrated interventions in the most marginalised areas – Renewal with ERDF was a new experience for the management system → high burdens of administration → low level of flexibility, innovation – Public participation existed through the cooperatives and condominiums but its level was low (lack of culture in this field) – The time frame (1. 5+1 years) was not appropriate to reach the most marginalised layers of the society

3. Conclusions: challenges to apply CLLD in post-socialist cities • Once deprived areas are selected the local residents have to be included into decisionmaking about renewal • The level of physical renewal of deprived areas has to be determined very carefully (the higher this level is, the more will the population change) • The application of the CLLD methodology requires special approach in post-socialist cities

Summary: chances for CLLD Sustainable social results can only be achieved in combination of horizontal and area-based interventions: area-based interventions may only have limited results if the higher level policies (welfare systems) do not work properly Enough time has to be ensured for planning and implementation of area-based interventions Area-based interventions have to be carefully designed, with the involvement of residents, as the level of physical improvements determine to large extent the social outcomes In order to achieve the CLLD-type model intermediary institutions have to take leading role: interdisciplinary public management companies, cooperatives, condominiums, NGOs The roles of politicians and managers should be separated and subordinated to the CLLD type organizations in which residents have to be well represented – however, this is difficult to achieve

ITI and CLLD ITI (ESF, ERDF, CF) CLLD (CSF Funds) Multisectoral, integrated approach to territorial development – investments based on a territorial strategy Strategy is elaborated by the region/municipality (no formal community involvement) The territorial strategy is elaborated bottom-up by local communities: cannot be imposed if there is no local initiative The strategy can be implemented by the MA or another body. Certain delegation of tasks is obligatory under Article 7 of ERDF The strategy is implemented by LAGs with strict balance of representation. Delegation of certain tasks (in particular project selection) to LAGs is obligatory Involves combination of funds from multiple priority axis (or operational programmes) In the case of ERDF and ESF, CLLD is implemented within a single investment priority All types of investment Community-defined projects, mostly of small scale No specific methodology Methodology set out in regulation 43

INTEGRATED DEVELOPMENT AND EUROPEAN POLICIES The different levels of functional areas might use different EU tools to strengthen integrated urban development: • Local-neighbourhood level: CLLDs, led by publicprivate-thirdsector partnerships • Metropolitan areas: ITIs, led by the core city – there is a need for defined boundaries and (at least delegated) fixed institutional structure • Broader economic cooperation areas: Horizon 2020 innovation partnerships (including administrative regions) – can and should be kept on flexible spatial level 44

Thanks for your attention! tosics@mri. hu 45