OLD CITIES NEW ASSETS public private cooperation in the rehabilitation of historic centres
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the urban heritage of Latin America
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historic centres
Salvador de BahĂa Brazil
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historic cities
Ouro Preto Brazil
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historic towns
Coro Venezuela
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public spaces
Cuzco, Peru
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monuments
San Francisco Convent Quito
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public buildings
San Juan de Dios Hospital Quito Ecuador
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office buildings
Recife Brazil Eduardo Rojas
commercial buildings
Pasaje Arzobispal Quito, Ecuador
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industrial buildings
Artigas Railway Terminal Montevideo Uruguay
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houses
Lima Peru
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Quito Ecuador
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Montevideo Uruguay
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the urban structure
Oaxaca Mexico
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downtown Quito, Ecuador
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centrally located assets
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the deterioration of urban heritage areas
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• Buildings loose their functions – High income households moving to the suburbs – Services and commerce follow
• Real estate assets loose market value – Area´s lack of attraction for households and enterprises depress real estate prices – Low prices discourage developers Eduardo Rojas
• The heritage areas are occupied by economic activities with low productivity – repair and craft shops – informal commercial activities – street vendors – warehouses
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• and by low-income households that find – cheap housing – easy access to jobs
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• the heritage areas are affected simultaneously by – Economic decay – Social disintegration – Physical decay
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The deterioration cycle Rents from real estate decrease Private investment ceases Land tax receipts decrease Public investment decreases Public spaces and private buildings deteriorate
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Quito Ecuador in the late 1980´s
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barriers for the rehabilitation of urban heritage areas
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• The coordination problem – Most owners will benefit from urban rehabilitation but they cannot do it alone – Developers face difficulties in consolidating land or acquiring building for rehabilitation and development
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• The regulation problem • (government induced deterioration)
– Restrictive land use plans – Uncertainty about large institutionally-owned properties – Environmental regulations on brown fields
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• Historic preservation plans promote urban decay when… – designate a preservation area without consulting with the population and the owners – place the burden of preservation on the owners – restrict land and building uses – restrict adaptation and development of historic structures
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the urban heritage rehabilitation process
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Quito Historic Centre
Santiago West Downtown Area
Washington DC Penn Quarter
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the rehabilitation of urban heritage areas is a special case of the urban rehabilitation problem holds a variety of values for society present special public-private cooperation challenges
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• requires de coordinated use of the analytical and operational tools of – Historic preservation – Urban rehabilitation
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• to ensure sustainability – institutional arrangements must allocate costs, benefits and risks among stakeholders that are best suited to take them
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• key conditions for sustainable urban heritage preservation and development – involvement of all social actors in their most efficient capacity – heritage assets devoted to uses with high demand either for social services or commercial and residential activities
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• To ensure the sustainable use of rehabilitated assets – Revitalise the local economy – Attract new residents
• Areas under rehabilitation must offer – Investors: opportunities as profitable as those of the suburbs – Residents: amenities unique to the area or comparable to the suburbs
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• Create attractive conditions for enterprises – Good infrastructure – External economies – Favourable regulatory environment
• Reduce the real or perceived risk by investors and households – – – –
Mitigate or eliminate negative externalities Organise the demand Undertake demonstration projects Subsidise desirable developments
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• conditions for launching urban rehabilitation programs – Ample consensus among social actors – Long term vision for the area • Strategy • Urban project
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• conditions for sustaining urban rehabilitation programs – involvement of all social actors – public-private cooperation to • create new economic activities • bring in new residents
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• To ensure maximum effectiveness the institutional arrangements must ensure that interventions are – Coordinated to tackle all areas of concern – Executed in the correct sequence – Have sufficient scale to modify existing trends
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Preservation and Development of Historic Centres The Experiences of Ten World Heritage Sites
Inter American Development Bank Eduardo Rojas
•  Study of preservation and development at 8 historic centres of mid-size cities included in the World Heritage List of UNESCO
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Oaxaca, Mexico
Quito, Ecuador
Salvador, Brazil
Valparaiso, Chile
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Edinburgh, Scotland
Porto, Portugal
Siracusa, Italy
Verona, Italy
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historic centres with different levels of conservation‌
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some stylised facts about the preservation and development of eight of the urban heritage sites
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the population declines more in the less preserved centres ‌ 
 (last ten years)
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and they have a more unbalanced age structure‌ 

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than the better preserved historic centres.

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historic centres have more renters than the rest of the city‌

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and more low-income households‌
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with less residential land uses‌
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than the better preserved centres‌
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in spite of the investments made‌
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that usually take a long time to come by‌ Quito Historic Centre Rehabilitation Timeline
1940
1950
1960
1970
1980
1990
2000
2010
Several Preservation Plans
Historic Preservation Fund (FONSAL)
Quito Historic Centre Corporation
Quito Urban Development Company
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with the late arrival of the private sector‌ Quito Historic Centre Rehabilitation Timeline
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and that are difficult to sustain...
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conditions for successful urban heritage preservation
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• conditions for launching urban rehabilitation programs – Ample consensus among social actors – Long term vision for the area • Strategy • Urban project
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• conditions for sustaining urban rehabilitation programs – involvement of all social actors – public-private cooperation to • create new economic activities • bring in new residents
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• conditions to ensure maximum effectiveness the institutional arrangements must ensure that interventions are – Coordinated to tackle all areas of concern – Executed in the correct sequence – Have sufficient scale to modify existing trends
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consensus and involvement of all social actors
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the communities must value their heritage… • Economic values – Use values • Direct use – Non consumption – Consumption • Indirect use
– Non use values
• – – – – –
Socio cultural values Aesthetic Spiritual Social Historic Symbolic
• Existence • Inheritance • Philanthropic Eduardo Rojas
move from unidimensional valuation… • Economic values – Use values • Direct use – Non consumption – Consumption • Indirect use
– Non use values
• – – – – –
Socio cultural values Aesthetic Spiritual Social Historic Symbolic
• Existence • Inheritance • Philanthropic Eduardo Rojas
to a more multidimensional valuation… • Economic values – Use values • Direct use – Non consumption – Consumption • Indirect use
– Non use values
• – – – – –
Socio cultural values Aesthetic Spiritual Social Historic Symbolic
• Existence • Inheritance • Philanthropic Eduardo Rojas
...and the different actors must be actively involved‌
Promoters The elite
Beneficiaries Local community Tour operators
Financing Central Government Private philanthropy
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Organisations of the civil society
International organisations
Promoters
Scholars
Central government
Students
Regional government
Individuals Community organisations
Beneficiaries
Financing
Local government Real Estate Investors
Tourists Enterprises
Households Eduardo Rojas
Oaxaca, Mexico
Quito, Ecuador
Salvador, Brazil
Valparaiso, Chile
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Oaxaca, Mexico
Quito, Ecuador
Salvador, Brazil
Valparaiso, Chile
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Brazil Salvador de Bahia
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first phase
city blocks selected for rehabilitation
second phase
third phase
integrated rehabilitation rehabilitated blocks executed and financed returned to owners by the government
cultural animation financed by the Government of the State
operation and maintenance financed by the Government of the State
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Salvador de Bahia, historic centre, public investments in city blocks and buildings 1992-2006
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Promoters The elite
Financing State Government Beneficiaries City and local community Tour operators
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institutional arrangements
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• To ensure maximum effectiveness the institutional arrangements must ensure that interventions are – Coordinated to tackle all areas of concern – Executed in the correct sequence – Have sufficient scale to modify existing trends
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coordination
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Oaxaca, Mexico
Quito, Ecuador
Salvador, Brazil
Valparaiso, Chile
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Valparaiso World Heritage Site
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INTEGRATED HERITAGE REHABILITATION AREAS (EPIS)
ENTORNO BARRIO FINANCIEROCº ALEGRE
ENTORNO PLAZA ENTORNO DE LA JUSTICIA – BARRIO PUERTOCº CORDILLERA Cº STO DOMINGO
ENTORNO PLAZA ADUANA Cº ARTILLERÍA
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sequence by organising interventions in time
Year 1
2
3
4
5
Infrastructure Public spaces Municipal services Promote new economic activities Bring new residents Private investment in new activities
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INTERVENTIONS
1
STREET IMPROVEMENTS
2
PUBLIC SPACES IMPROVEMENTS LOWER TOWN
3
AVENUES AND STREETS PEDESTRIAN WALKWAYS SQUARES PEDESTRIAN WALKWAYS PRIVATE FUNICULARS
FUNICULAR IMPROVEMENTS
PUBLIC FUNICULARS FNICULARS TERMINALS
4 5
PUBLIC SPACES IMPROVEMENTS NEIGHBORHOODS
PEDESTRIAN WALKWAYS SMALL PUBLIC SPACES COMMERCIAL ENDEAVOURS
HERITAGE REHABILITATION FOR PRODUCTIVE USES
CULTURAL COMMUNITY DEVELOPMENT
6
HOUSING AND TENEMENT IMPROVEMENT
7
HOUSING REHABILITATION
8
REHABILITATION OF EMBLEMATIC BUILDINGS
HOUSING REHABILITATION TENEMENT REHABILITATION
HOUSING RECONVERSION
EMBLEMATIC BUILDINGS
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URBAN INTERVENTIONS TIME FRAME MEJORAMIENTO DE VIALIDADES
MEJORAMIENTO
ESPACIOS PÚBLICOS-PLAN
RECUPERACION INTEGRAL DE ASCENSORES
2006 AV. BRASIL
( 4 CUADRAS)
Cº ARTILLERIA Cº STO DOMINGO Cº ALEGRE
Cª. STO. DOMINGO Cº. TORO Cº. ALEGRE Y CONCEPCIÓN
RECUPERACION DE
BARRIO PUERTO ADUANA PLAZA JUSTICIA BARRIO FINANCIERO
ESPACIOS CON FINES PRODUCTIVOS, CULTURALES Y COMUNITARIOS
MEJORAMIENTO
Cº STO. DOMINGO Cº ARTILLERIA Cº CORDILLERA
REHABILITACION
Cº STO. DOMINGO Cº ARTILLERIA Cº CORDILLERA
DE VIVIENDAS Y CONVENTILLOS
DE VIVIENDAS MINVU
RECUPERACION
DE EDIFICIOS DESTACADOS
2008
2010
CALLES
ESMERALDA, PRAT, COCHRANE, AV. ARGENTINA Y AV. BRASIL (12 CUADRAS)
CALLES
TOMAS RAMOS, CANAL Y CASTILLO
PLAZA ADUANA PLAZA SOTOMAYOR
ASC. EL PERAL
MEJORAMIENTO
ESP. PÚBLICOS VECINALES (SENDAS-MICROPLAZAS)
2007
EDIFICIO SEVERIN
ASC. STO. DGO ASC. ARTILLERIA ASC. R. VICTORIA ASC. BARON
ASC. CORDILLERA ASC. CONCEPCION ASC. POLANCO
Cª. ARTILLERIA Cº. CORDILLERA
EDIFICIO MERCADO PUERTO
P. LA MATRIZ BIBLOTECA SEVERIN
EDIFICIO ADUANA
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Management of urban areas in Chile. Assignment of responsibility
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Treasury
IDB
Interior Directorate Treasury Interior Municipality
Project Execution Unit Local Government
Municipality
Forestry Corporation
historic preservation
Central Government
environment
Urban Development Service
Regional Government
public spaces Eduardo Rojas
• Institutional arrangements that led to: – Continuos shifts in priorities – Decoupling of investments • loosing coordination and sequence • loosing focus on the integrated heritage areas
– Shifting community involvement in the program
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sequence
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Lessons learned from the cases studied indicate that there is a preferable sequence in the implementation of interventions for the conservation and development of urban heritage areas
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initial stage deteriorated urban heritage assets


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initial phase public investment infrastructure improvement
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improvements to
 public spaces
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public rehabilitation of emblematic buildings
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advanced phase partnerships
 rehabilitation of heritage buildings in partnership with 
 the private sector
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final phase
 private intervention
 building rehabilitation
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sustainable state
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decision sequence in the conservation process for urban heritage traditional
Building s value identified by conservation experts Conservation plans prepared by specialists
proposed
Assets value identified by conservation experts Study of the demand for space in this type of asset
Funding secured from different sources Conservation works Executed Use for the building found
Partner for conservation and sustainable use secured Conservation works executed with mixed funding Assets under sustainable use and well-maintained
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scale
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Oaxaca, Mexico
Quito, Ecuador
Salvador, Brazil
Valparaiso, Chile
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Historic Centre Quito
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First Phase Public Investment In Quito Historic Centre
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Programmed investments


US dollars (millions)
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• Public investment – Street improvements – Parking garages – Cultural facilities in historic buildings – Social sustainability • Low-income housing • Markets • Public safety
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• Public private investments – Rehabilitation of buildings to demonstrate the feasibility to install and operate • Commerce • Residences • Offices • Recreational activities – The Historic Centre to offer a unique mix of services to compete with other centres in the city
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Quito Historic Centre Corporation • Mixed Capital Society – 90% of shares owned by the Municipality – 10% owned by the Caspicara Foundation
• Board – 12 members • 7 members come from the private sector • 5 members come from the public sector
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• Capacities – Operate as real estate developer – Work in association with private sector • Land owners • Real estate developers • Cooperatives
– Municipality can contract works directly with the Corporation
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• Instruments – – – – – –
Infrastructure rehabilitation Improvement of public spaces Regulation of street commerce Rehabilitation of public buildings Pioneering commercial investments Social sustainability program • Low income housing • Community outreach • Public safety Eduardo Rojas
sources of funding Central Government
Municipal budget
Monuments
Infrastructure
IDB Loan
Public spaces
Ministry of Housing
Private sector
Social housing
Commercial real estate
types of investments
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Fundaci贸n Caspicara
Promoters Central government
Residents
Citizens of Quito
Beneficiaries
Financing
Municipality
Real Estate Investors
Tour operators Households
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in sum
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• There are triggering factors for the preservation of urban heritage preservation – Community concern for urban (heritage) decay – Strategic objectives for long term city development – Strong political leadership
• There are contributing factors – Favourable sector policies • Housing • Urban transport
– Developed financial markets – Strong consensus among actors Eduardo Rojas
• The rehabilitation of urban heritage areas brings several benefits beyond the preservation of cultural assets – More intensive use of public assets – Better use of private assets – Centralisation of activities • Reduced cost of urban development • Reduced transportation costs
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• Gentrification – Sign of success – Damage some residents • Low income renters • Low productivity economic activities
– Mitigation measures • Retain rental space for low income households and economic activities • Assist low income owners
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•  when all social actors are involved in their most efficient capacity and the heritage assets are devoted to uses with high demand either for social services or commercial purposes the rehabilitation process results in the sustainable preservation and development of the urban heritage Eduardo Rojas
S達o Cristobal, Brazil
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