The Public-Private Partnerships in Buildings Regeneration: A Model Appraisal of the Benefits and for Land Value Capture

Abstract

This paper discuss the thematic of public-private economic negotiation in the realization of urban regeneration programs. The Complex Urban Programs (PUC) represent a generation of planning instruments generally in variation to ordinary instruments of general planning (PRG). These instruments found its legitimacy on new forms of concerted planning, in which the objectives are the effectiveness and efficiency of the public administration and the most important point of view are the quality and transparency of the negotiation between public and private. In these circumstances for the purposes of the feasibility, the arguments of urban planning must necessarily be supported by economic-financial considerations resulting from appraisals of the benefits financial and the new real estate values generated by the decision to promote the program in PRG variant. Particular attention must be paid on the modality for consultation between the public government, the owners and the developers when they comparing on mutual convenience as part of the PUC: the negotiation activities is the time during which the public body can capture a portion of land value generated by the choices of modify the PRG. The aim of this paper is the presentation of the economic negotiation between public and private that the Municipality of Reggio Calabria (Italy), with the technical and scientific support of the university laboratory of economic and appraisal evaluation (LaborEst) has promoted in recent years through two PUC. The two Complex Urban Programs are both located in the south of cities of Reggio Calabria (Italy). The paper describes in particular the model for appraisal of extrastandard charged by private entities participating in the two programs. The model developed by both authors is the result of their common research.