Терье Нипан. Секция: «Наследие: культурная ценность и экономический драйвер»

How cultural heritage can
contribute to urban

N.B. V.03 21.11.12

copyright Terje Nypan

Built cultural heritage -


• What? Historic buildings, sites and quarters with
speciﬁc historic qualities. Includes Monuments etc.


• Capital. Cultural heritage can be capital; Cultural
capital, National Fortune, Built capital, Infrastructure
Capital, etc.


• Capital. Cultural heritage can be capital; Cultural
capital, National Fortune, Built capital, Infrastructure
Capital, etc.
• Economic capital; when the capital becomes
‘harvestable’ economic value.
– Real estate value or use value to generate new
economic value
– Added value: Appreciated value of historic
attributes releasing ‘willingness to pay’.
– Adding ‘social value’ – other positive non

«Historic urban houses and quarters are
of high economic and development


• Who say’s so?


• Who say’s so?
– WB - World Bank.


• Who say’s so?
– ILO – International Labour Organisation (UN)


• Who say’s so?
– EU - European Union


• Who say’s so?
– Governments (some)


• Who say’s so?
– Urban developers


• Who say’s so?
– Urban developers

• RESSOURCE MUST BE

2. WHAT CAN CULTURAL HERITAGE



• Tourism business and income.



• Better labour creation pr. invested money.



• More money circulating inside the local
economy,
• Jobbs. More local materials use,. Services,
resirculation, etc…



economy,
• Savings in foreign exchange reduction as
less investments are made outside
(import).



economy,
• Savings in foreign exchange reduction as
less investments are made outside
(import).
• Strong contribution to high quality urban
environments and identity for the

Economy sectors beneﬁtting from use of built


Economy sectors beneﬁtting from use of built

ROLES OF CULTURAL HERITAGE
BUILDINGS IN URBAN AND ECONOMIC

40 ROLES or USES.


40 ROLES or USES.
Labour creation
• Labour Intensive Construction and
rehabilitation.
• Conservation Craftsmanship.
• Work in the Decorative Arts.
• Suppliers and Producers, local.
Environment – resource use
• Infrastructure Savings.
• Landﬁll Savings – resource
economy.


40 ROLES or USES.
Labour creation
rehabilitation.
economy.
Urban policy roles
• Importance of Core of the City.
• Centre City Revitalization.
• Creation of Civic Identity /Competitiveness.
• Identity and Competitiveness require
Differentiation.
• Counterpoint to Quality New Architecture.
• Strategy for Small Town Revitalization.
• Reduction in resource use.
• Vehicle for effective Public-Private
Partnerships.
Direct use public
• Venue for Exhibitions and Trade Shows.
• Venue for the Fine Arts.
• Venue for the Performing Arts.
• Arts Districts


40 ROLES or USES.
Labour creation
rehabilitation.
economy.
Urban policy roles
• Creation of Civic Identity /Competitiveness.
• Identity and Competitiveness require
Differentiation.
• Counterpoint to Quality New Architecture.
• Vehicle for effective Public-Private
Partnerships.
Direct use public
• Venue for Exhibitions and Trade Shows.
• Arts Districts
• Venue for Street Performers.
• Education venue for elementary school
students.
• Education venue for high school
students.
• Education Venue for University
Education copyright Terje Nypan

40 ROLES or USES.
Labour creation • Attraction for the Creative Class
• Labour Intensive Construction and • Attraction for the Young.
rehabilitation.
• Conservation Craftsmanship. • Heritage and Attachment to the City.
• Work in the Decorative Arts. • Public Gathering Place for Families.
• Suppliers and Producers, local. • Context for Active Street Life
Environment – resource use • Context for Passive Street Life
• Context for Watching Street Life Go By.
economy. Direct use; public private enterprise.
• Venue for Local Markets
Urban policy roles • Location for small, neighbourhood serving
businesses.
• Creation of Civic Identity /Competitiveness. • Location for specialty product businesses.
• Identity and Competitiveness require • Location for food & wine businesses.
Differentiation. • Location for Crafts Production.
• Counterpoint to Quality New Architecture. • Context for the Informal Economy.
• Location for Luxury Goods Businesses.
• Vehicle for effective Public-Private • Location for business and offices
Partnerships. • Context for 21st Century Business and Transportation
Direct use public Centre.
• Venue for Exhibitions and Trade Shows. • Tourism attractor(s).
• Arts Districts
• Venue for Street Performers.
• Education venue for elementary school
students.
• Education venue for high school
students.

40 ROLES or USES.
Labour creation • Attraction for the Creative Class
• Labour Intensive Construction and • Attraction for the Young.
rehabilitation.
• Conservation Craftsmanship. • Heritage and Attachment to the City.
• Work in the Decorative Arts. • Public Gathering Place for Families.
• Suppliers and Producers, local. • Context for Active Street Life
Environment – resource use • Context for Passive Street Life
• Context for Watching Street Life Go By.
economy. Direct use; public private enterprise.
• Venue for Local Markets
Urban policy roles • Location for small, neighbourhood serving
businesses.
• Creation of Civic Identity /Competitiveness. • Location for specialty product businesses.
• Identity and Competitiveness require • Location for food & wine businesses.
Differentiation. • Location for Crafts Production.
• Counterpoint to Quality New Architecture. • Context for the Informal Economy.
• Location for Luxury Goods Businesses.
• Vehicle for effective Public-Private • Location for business and offices
Partnerships. • Context for 21st Century Business and Transportation
Direct use public Centre.
• Venue for Exhibitions and Trade Shows. • Tourism attractor(s).
• Venue for the Performing Arts. Direct use (private) housing
• Arts Districts • Housing for the wealthy.
• Venue for Street Performers. • Housing for Professional Class.
• Education venue for elementary school • Housing for Middle Class.
students. • Housing for the Working Class.
• Education venue for high school • Premium real estate pricing – value added -.
students.

http://freshome.com


http://freshome.com Breathtaking Medieval Building
Turned Into Contemporary Living
Space


More jobs pr investment.


More jobs pr investment.

More jobs and household


Employment; direct & indirect
• Foreign tourist arrivals EU 480 million
2007. 50% of all international tourist
arrivals. CH generated 2007 € 440
billion turnover.
• The Cultural & Creative sector Europe
over € 654 billion turnover (2003). The
turnover of the Car manufacturing
industry (2001) was € 271 billion.
• See: The Economy of Culture in Europe. Commissioned by DG Culture, October 2006. KEA
with the support of University of Turku and Deutsche Wirtschafts Institute. Source: DCH
Norway, European Automobile Association, European Chemical


ADVANTAGES


ADVANTAGES
1. Historic rehabilitation creates 13% higher return on
investments than new construction and 16,5% more jobs. It
also produces 1.243 times less waste.
2. Historic rehabilitation creates app. 10% higher return on
investments than highway construction and 26,6% more
jobs.
3. The ch sector creates app 26,7 jobs for every direct one,
compared to the auto industry where the factor is only 6,3.
4. Cultural heritage tourism generates incomes in trade and
services to Europe in the order of Euro 404 billion pr. year.
5. The European cultural heritage sector assures employment
for more than 8.000.000. persons.
6. Investments in maintenance and upkeep of cultural heritage
buildings are capitalised to society at a rate of 1/10.


The Russian design studio SL Project has managed to innovate the interior of the Housing Problem project, a
small apartment located in Moscow, through a colorful illumination system.

The Russian design studio SL Project телефон: +7 (916)
125-92-03 / info@ab-sl.ru has managed to innovate the
interior of the Housing Problem project, a small apartment
located in Moscow, through a colorful illumination system.
http://freshome.com/2012/10/26/creative-design-
solution-lightning-your-apartment/ copyright Terje Nypan

http://freshome.com/
2012/02/22/reshaped-
residence-originated-in-an-
abandoned-stable/


III. URBAN DEVELOPMENT –


• Predictability.
– Regulations and other development tools. . Trust and the
willingness from private persons or companies to invest
nothing is possible. Accountability long term stability /
predictability critical for real estate investment, also or
family investment / accommodation - normal homes -.


• Predictability.
• Plans. Town planning, development planning.
– Cultural Heritage part as you have a Transport part and an
Environment (green parks, pedestrian, etc.) part. Zoning and
protection areas


• Predictability.
protection areas
• Investors are looking at reducing uncertainty and for
maximizing probability for success (reducing risks).
– Planning tools indicating development restraints in areas
channel investments to appointed areas. Other areas are
sheltered form new buildings etc. if this is what is intended
(and rules are enforced).


• Predictability.
protection areas
• Investors are looking at reducing uncertainty and for
maximizing probability for success (reducing risks).
– Planning tools indicating development restraints in areas
channel investments to appointed areas. Other areas are
sheltered form new buildings etc. if this is what is intended
(and rules are enforced).
• Allow and work for reuse.
– Heritage regulations (and building regulations, building
permissions, must allow for differentiated statutory
protection allow and support reuse (necessary interior

• Predictable, Accountable and service minded
administration.
– Heritage administration that together with owners and users
are focused on ﬁnding solutions to allow for continued and
evt. alternative use.


administration.
• Incentives or support services
– An incentive package is a powerful tool in urban development.
Can be many varieties. Moscow has some examples. For to
owners and developers of historic properties.
– Support for window restoration change. Special refund for
energy efficiency measures or thermal insulation. Tax
arrangements allowing owners to deduct before tax (which
tax?), reduced VAT, reduced property tax value, etc. etc.


administration.
• Incentives or support services
– An incentive package is a powerful tool in urban development.
Can be many varieties. Moscow has some examples. For to
owners and developers of historic properties.
– Support for window restoration change. Special refund for
energy efficiency measures or thermal insulation. Tax
arrangements allowing owners to deduct before tax (which
tax?), reduced VAT, reduced property tax value, etc. etc.
• Supporting and cross cutting actions from the
Municipality.
– Neighbourhood investment. Like investing in infrastructure,
public transport, pavements, parks etc. Value added to
neighbourhood. copyright Terje Nypan

IV Moscow. Conﬂicts and
innovations.
• 18th-century building on Ulitsa Arbat.
…… sent a request on Aug. 8 to
Moscow prosecutor S. V. Kudeneyev
and the Presnenskaya Interdistrict
prosecutor Yu. A. Basov to enforce the
order of the Moscow Cultural Heritage
Department to halt the demolition of
the historical building at 41 Arbat,”
• Also former hospital building on
Strastnoi Bulvar is unsettled.

Restore historic Moscow building and
rent’s a ruble
• MOSCOW INITIATIVES. The city of Moscow has launched
an innovative program that gets private developers to
pay to restore historic properties in “inadequate
condition.” It’s really rather ingenious.
• The city’s Heritage Commission picks properties that are
in dire need of repair and offers 49-year leases for a
yearly rent determined by auction. The developers pay
the market-price rent — they pay the ﬁrst year of rent up
front — while they restore the building to speciﬁcations
determined by the Heritage Commission. Once the
restoration is done and approved, the yearly rent drops
to one ruble per square meter for the rest of the 49 year
lease.

Moscow. Conﬂicts and innovations.


Moscow mayor slams demolition of historic. May 2011.
Moscow Mayor Sergey Sobyanin ordered developers to
rebuild a 19th-century house that was knocked down
illegally. He also promised to launch a criminal case into
the issue.


the issue.
• the Capital Group construction company knock down a
historic house on Bolshaya Yakimanka Street that was a
rare example of 19th-century architecture.


the issue.

• Residents pay. For use. http://www.thehistoryblog.com/
archives/16466


the issue.

archives/16466

A major problem is that no one yet knows how to share
the investment between apartment owners and state
tenants.


the issue.

archives/16466

A major problem is that no one yet knows how to share
the investment between apartment owners and state
tenants.
• “We don’t live in Europe, where an elite building stays

• REUSE
• IN DEMAND – HIGH END? Not always
• CREATIVE INDUSTRIES
• REGULATIONS IMPORTANT
– REGULATES MARKET
– PROTECTS VALUE
– CREATES PREDICTABILITY FOR
INVESTMENT

The Economics of Uniqueness at a


• Balance conservation with an acceptable
degree of change. Stakeholders should weigh the
different values and trade-off s between conservation and
development, identifying the acceptable level of change and the
extent of adaptive re-use.


• Promote a blend of regulation and
incentives. Measures to conserve historic city cores and
heritage assets are not limited to rules and regulation that
restrict activities. Incentives are also essential for achieving
“integrated conservation.”


• Promote a blend of regulation and
incentives. Measures to conserve historic city cores and
heritage assets are not limited to rules and regulation that
restrict activities. Incentives are also essential for achieving
“integrated conservation.”
• Ensure a dialogue between public and
private sectors. Heritage is a public good and the
economic justiﬁcation for public sector investment is well
established. But, it is un-reasonable to expect the public sector
to be the sole investor, and the solution is to have a combination
of public and private investment, with a balance between the two,

“Over the long term, places with strong,
distinctive identities are more likely to
prosper than places without them. Every
place must identify its strongest, most
distinctive features and develop them or run
the risk of being all things to all persons and
nothing special to any. […] Livability is not a
middle-class luxury. It is an economic
imperative.”
Nobel Prize Laureate Robert Merton Solow.


END

“Over the long term, places with strong,
distinctive identities are more likely to
prosper than places without them. Every
place must identify its strongest, most
distinctive features and develop them or run
the risk of being all things to all persons and
nothing special to any. […] Livability is not a
middle-class luxury. It is an economic
imperative.”
Nobel Prize Laureate Robert Merton Solow.
A strategy that will work for
Moscow?

END

Терье Нипан. Секция: «Наследие: культурная ценность и экономический драйвер»

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