The Collapse_Decision-Making of Urban Renewal in China

THE COLLAPSE Urban villages have the most intense breathing in the city.

These urban spaces have assumed important functions and are home to low-income m i g r a n t w o r k e r s . Pe o p l e live here and start from this, providing indispensable services for the city center.

——Gangxia “Rashomon”

Decision-Making of Urban Renewal in China Jiarong Yao 200082 The Royal Danish Academy - Architecture Urbanism & Societal Change Characters: 38331

CONTENTS Abstract

01

Introduction

04

Why Study Urban Renewal in China

05

Research

08

Research Field

09

Research Question

10

Research Method

11

Analysis and Cases

12

Stakeholders and the Operation of Urban Renewal

13

Application of Participatory Decision-Making Theory

13

Stakeholders and Urban Renewal Process

13

Urban Renewal Process

17

Urban Renewal Cases

Jiarong Yao The Royal Danish Academy - Architecture Master’s Programme of Urbanism & Societal Change 10 ECTS Written Assignment Title: The Collapse Decision-Making of Urban Renewal in China

19

The Projects in Shenzhen

19

Case 1 Gangxia Village

21

Case 2 Baishizhou Village

26

Discussion

32

The Potential of a Decision-Making System with Balance

33

Government's Goals and Initiatives

37

Developer's Goals and Initiatives

38

Resident's Goals and Initiatives

39

21st, December 2021

Conclusion

42

Supervisor: Christine Bjerke

The Role of the Architect and the Way of Intervention

43

Bibliography

47

Image & Figure List

49

1. Cover Image: "Urban Mountain" in Gangxia Village, Shenzhen, Zhubo Design, 2018 2. Chinese Yuan (CNY) 1.00 = Danish Krone (DKK) 1.00

ABSTRACT

Image #01 Shenzhen Skyline Panorama by Jalvaran

With the explosive growth of the population

can be simplified into a multi-party decision-

of different urban renewal cases. When

in China, urban planners are facing a dilemma

making model. Real cases show that this model

architects put forward strategies that suit

of how to accommodate the growing urban

has an unbalanced relationship, which leads

different interest groups based on their position

population and limited resources such as energy,

to specific problems in the results of urban

and use design as their own tools, they can

space and land. Demolition and reconstruction

renewal. Different attempts are used to find a

improve the decision-making process, and

proved to be a quick way to increase economic

new relationship, but these new relationships

this optimization for participatory decision-

benefits, as one of the ways to intervene in the

are usually established in an ideal environment,

making can allow the government, developers

form of urban renewal, trying to balance the

and some groups in the existing model need to

and residents to obtain a new flow of interests,

resources within the city. However, especially

sacrifice some benefits for it. Although the new

which makes a balanced participatory decision-

in the transformation of urban villages, the

model can bring about the improvement of the

making system possible.

demolition and transformation methods

general environment, compared with the huge

advocated by the government not only threaten

temptation, it has become a question whether

the livelihoods of the low-income groups, but

these long-term benefits can trigger rational

also have an impact on the local culture and the

thinking by different groups.

labor-intensive urban economy.

This written thesis could test the possibility Based on the theory of participatory decision-

of establishing a new relationship with the

making, the entire process of urban renewal

intervention of architects through the collation 01

02

INTRODUCTION

一

Urban renewal, a game between the Chinese government and residents. As residents, the price of losing the game is to convert their home into a number into their account. The total construction area approved by the Ministry of Land and Resources of China in 2020 is 976 square kilometers. However, the vacant land currently is only 43 square kilometers, accounting for 2.3% of the total (approximately 1 9 5 2 s q u a r e k i l o m e t e r s ) . 01 A m o n g t h e remaining 97.7% of the land, the game of urban renewal provides large swathes of land for the new construction.

Image #02 Shenzhen Cityscape by Alamy Stock Photo 03

04

WHY STUDY URBAN RENEWAL IN

government uses demolition and reconstruction as

CHINA

the primary approach (70.48%) while the other two

According to Shenzhen's official statistics, the

policy instruments are secondary approaches (14.29%

long-term population of Shenzhen in 2021 is 12.59

and 15.23%).03

million, and the actual population is more than 20 In the past, demolition and reconstruction is proved

residents. And in the past 40 years, the population

to be a quick way to increase economic benefits, as

that has increased by more than 500 times has put

one of the ways to intervene in the form of urban

unprecedented pressure on this land, and the entire

renewal, trying to balance the resources within the

urban ecology is on the verge of collapse. Along

city. As of December 31, 2020, there have been a total

with this growth, urban planners are now facing the dilemma of how to accommodate ever increasing

1980-1990

million02. Before 1980, the entire city had only 30,000

of 929 demolition and reconstruction urban renewal Image #03 Handshake Buildings in Shuiwei Village

by Juanzong Wallpaper

urban populations versus finite resources available for energy, space, and land. In this process, different ways have been tried to alleviate this pressure, population, and redistributing urban population inward to ease the congestion in the city center.

square meters. Among them, the land use supply for urban renewal will be 1.1 million square meters in 2020, accounting for 30% of the total residential land

1990-2000

including expanding outward to accommodate more

projects in Shenzhen, with a total area of 74 million

supply in Shenzhen that year.04 However, empirical institutional barriers hinder the actual implementation process, especially the transformation of villages in cities. In a lot of practice, the demolition and

urban renewal, which is to optimize the relationship

transformation methods advocated by the government

between space or buildings and the city based on the

not only threaten the livelihoods of the low-income

existing urban structure.

2000-2010

Among them, this inward redistribution is called

groups, but also have an impact on the local culture and the urban labor-intensive economy. This leads us

The urban renewal projects aim at improving

to re-examine the starting point of urban renewal and

the physical, social, economic, and ecological

the decision-making process.

actions, including redevelopment, rehabilitation, and renovation. Due to different conditions, there are three different urban renewal methods at the government level: demolition and transformation, functional transformation and comprehensive renewal. Considering the high demand for land, 05

2010-2020

aspects of abandoned urban areas through various

Figure #01 Shenzhen's Urban Growth Timeline

by MVRDV

01. Communiqué on Major Data of the Third National Land Survey, Ministry of Natural Resources of China and National Bureau of Statistics, 2021 02. Seventh National Population Census of Shenzhen, Bureau of Statistics in Shenzhen, 2021 03. An Evaluation of Urban Renewal Policies of Shenzhen, China, Guiwen Liu, 2017 04. "Construction Land Supply Plan 2021", Shenzhen Municipal Bureau of Planning and Natural Resources, 2021 06

RESEARCH

二

Since the central government of China designated Shenzhen as a special economic zone (SEZ) in 1979, the city has been growing at an incredible pace. A "general old village's office", addressing the renewal of Shenzhen's original ten villages, was established as early as 1990. Sequentially, over the years to 2004, renewal plans for the old villages and old factories were published. By 2009, Shenzhen emerged as the first Chinese city to promulgate urban renewal legislation that specifically dealt with urban socioeconomic development problems arising from a lack of available land.

Thereafter, in 2012, more land was released by the Shenzhen government to accommodate growth projects, systematically set out in the urban renewal policies adopted.

Image #04 Facade of Village in the City Series 07 by Sun Haiting 07

08

Image #05 Facade of Village in the City Series 06 by Sun Haiting

RESEARCH FIELD

Main Research Question:

RESEARCH METHOD

research, establish an evaluation system for the

Compared with other cities in China, the

Based on participatory decision-making

Different groups have participated in the

behavior and impact of different participants in

historical development of Shenzhen determines

theory05, what is the current model of decision

decision-making process of urban renewal

urban renewal, discuss the goals and tools of

that it faces more problems of urban renewal,

making in urban renewal projects and how

at different stages, which is understood as a

different groups in the process, and sort out the

and the Shenzhen government also pays more

can a new model be built to help balance the

fair decision-making process. However, when

impact of different behaviors on the final urban

attention to the problem of urban renewal.

stakeholders with the new self-positioning of

power and resources are tilted towards a certain

renewal result. By thinking about the influence

Therefore, this research also uses Shenzhen's

the architect?

group, the fairness of decision-making results

and resistance of the participatory decision-

becomes a question.

making theory model in the decision-making

urban renewal project as the main case to analyze the behavior of various stakeholders in

Sub Research Questions:

the renewal process.

1. Why study urban renewal?

process, it tests the possibility of architects if they could build a platform with fairness.

Based on urban renewal cases and empirical

2. What are the reasons for urban renewal?

RESEARCH QUESTION

3. What is the operation mode of urban

The challenge for the government is to balance

renewal?

the interests of different participants while

4. What are the results and impact of urban

accelerating the development of urban renewal.

renewal?

As architects, how could we assume our social

5. What are the goals and response methods

responsibilities in this situation where the

of different participating roles (government,

policy and the implementation of games are in

developer, and residents)?

a bad balance.

6. What is the role of the architect in it?

09

05. Participatory decison-making theory, Aaron Lowin, 1968 10

ANALYSIS & CASES

三

In the process of urbanization and population movement, a large number of cities in China are facing the problems of obsolete buildings, overcrowding, and poor environmental conditions. And urban renewal is considered to be an effective way to achieve short-term construction goals, expand population capacity and balance population distribution.

Image #06 Baishizhou Village by Zhang Chao 11

12

STAKEHOLDERS AND THE OPERATION OF

government, citizens, developers, and architects.

URBAN RENEWAL

Application of Participatory Decision-Making

In China, the rights of land use and land ownership

Theory

are separate. The municipal government leases land

Participatory decision-making (PDM) is one of many

use rights to developers within a certain period

ways that organizations make decisions. Initially,

of time. According to Chinese national land law,

PDM is a way that employers allow or encourage

they obtain competitive prices through auctions or

employees to share or participate in organizational

bidding. However, in the use of non-agricultural

decision-making. The basic concept involves any

land in urban renewal projects, the transfer of land

power-sharing arrangement in which workplace

use rights between collectives or individuals and

influence is shared among individuals who are

developers depends on whether an agreement can be

otherwise hierarchical unequals06.

reached through negotiation.

With the development of theory, PDM has been more widely used in different fields, such as environmental, financial decision-making and even the decisionmaking process of some non-profit organizations.

In urban renewal projects in China, since there is no complete national urban renewal system to coordinate urban renewal policies related to planning laws, land laws or urban housing demolition laws, the decision-making process is more inclined to a multiparty discussion and coordination of participatory decision-making model. However, the results of a large number of urban renewal practices in China show that this participatory decision-making model does not always balance the interests of all parties, and the problems in it need to be analyzed through specific case studies.

Stakeholders and urban renewal process

Image #07 Reconstruction of Gangxia Village by Juanzong Wallpaper

The basic roles in the urban renewal projects are the 13

06. Locke, E.A.; Schweiger, D.M. "Participation in decision-making". Research in Organisational Behaviour 1: 265–339, 1979 14

TENANT Village Committee

HOUSEHOLDER

RESIDENT DEVELOPER

Real Estate Company

GOVERNMENT

Land Planning Institution

I Determination of Urban Renewal Area Specifically, when the government has a need to improve the urban environment, it will use corresponding incentive measures, such as introducing laws and regulations related to urban renewal in specific areas, adjusting the tax system, increasing public capital investment to enter the plot of urban renewal.

V Clearence of Tenant

VI Tenant Resolution

Tenant clearances are taking place in houses whose land property has been handed over to the developer. Tenants could appeal to the government in this process.

The government establishes Urban Renewal Field Work Group, acting as the interest coordinator, and providing solutions to problems arising in the process.

II Determination of the Implementer

V Contracts for Land Rights Transfer

According to the urban renewal areas provided by the government, the developer needs to contact the village committee to obtain the right to execute the urban renewal project.

And the village committee has the right to select the developer through the shareholder meeting.

Next, the developer needs to sign contracts with existing residents to obtain the land use rights granted by the residents. In this process, it is necessary to clarify the compensation method for land transfer, and compulsory demolition can be done after obtaining the consent of 95% of the residents.

III Confirmation of Urban Renewal Project After the agreement is confirmed, the developer needs to pay a deposit (50 million to 200 million yuan) to the village committee to complete the project, and publicize it at the Urban Renewal and Land Development Bureau of the area.

IV Declaration of Constration Plan After that, the developer needs to submit a declaration to the government, which needs to include the total construction area of the future construction and the proportion of residential buildings, etc., to obtain the special plan of the project.

VI Application for Constration Certificate

VII Implement of Urban Renewal Project

Developers need to apply for four certificates within 6-12 months thereafter, including 1. State-owned land use certificate 2.

Construction land planning permit 3.

Construction project planning permission Certificate 4. Construction Permit.

After completing the above procedures, the old house can be demolished, and the construction of the new building can be carried out. The project is generally completed within 36-48 months of obtaining the construction permit.

Figure #02 General Urban Renewal Process

by Author 15

16

Urban Renewal Process

declaration to the government, which needs to

01 Specifically, when the government has a

include the total construction area of the future

need to improve the urban environment, it will

construction and the proportion of residential

use corresponding incentive measures, such

buildings, etc., to obtain the special plan of the

as introducing laws and regulations related to

project.

urban renewal in specific areas, adjusting the tax system, increasing public capital investment,

05 Next, the developer needs to sign contracts

and even using government procurement to

with existing residents to obtain the land use

support market forces to enter the plot of urban

rights granted by the residents. In this process, it

renewal.

is necessary to clarify the compensation method for land transfer, and compulsory demolition

02 Under this series of measures, developers

can be done after obtaining the consent of 95%

can obtain huge benefits in the process of urban

of the residents.

renewal, so they actively choose to participate in the process of urban renewal. Taking the

06 Developers need to apply for four certificates

village in the city as an example, according to

within 6-12 months thereafter, including 1.

the list of urban renewal plots provided by the

State-owned land use certificate (issued by the

government, the developer needs to contact the

Land and Resources Bureau) 2. Construction

corresponding village committee to obtain the

land planning permit (issued by the Planning

right to execute the urban renewal project. In

Bureau) 3. Construction project planning

this process, the village committee has the right

permission Certificate (issued by the Planning

to select the developer through the shareholder

Bureau) 4. Construction Permit (issued by the

meeting.

Construction Bureau).

03 After the agreement is confirmed, the

07 After completing the above procedures,

developer needs to pay a deposit (50 million

the old house can be demolished, and the

to 200 million yuan) to the village committee

construction of the new building can be carried

to complete the project, and publicize it at the

out. The project is generally completed within

Urban Renewal and Land Development Bureau

36-48 months of obtaining the construction

of the area.

permit.

04 After that, the developer needs to submit a

Image #08 The Housing Expropriation Decision by People's Government of Nanshan District, Shenzhen 17

18

URBAN RENEWAL CASES

buildings on the west side were demolished in

The Projects in Shenzhen

several years’ negotiation, the city village on

Shenzhen has a large number of urban renewal

the east side was preserved under the dispute

projects every year. According to Shenzhen's

and became a unique urban texture in the center

urban renewal policy, there are specific

of Shenzhen.

procedures for the promotion of urban renewal projects. However, due to the inconsistency

Therefore, this written thesis hopes to compare

of policies and the uncertainty of the

these two projects to study the impact of

implementation process, different results will

different behaviors of different groups in the

often be brought by the same procedure.

same urban renewal process on the decisionmaking process.

With the progress of reform and opening up, Shenzhen’s rapid economic development has brought about unprecedented urban expansion, resulting in part of the surrounding villages and their arable land being included in the scope of urban land use. The functional types of most cultivated land have been changed due to the conversion of ownership, but the residential functions of the villages have been preserved.

Image #09 Baishizhou Tangtou Old House by Liang Zhou

As two historic urban villages, the Gangxia urban village and the Baishizhou urban village in Shenzhen both faced the problem of urban renewal after 2000, but the results of the two projects were completely different. The urban renewal project of the Baishizhou Urban Village has benefited a lot of its residents, and once caused many residents of other urban villages in Shenzhen to hope to welcome demolition.

While the urban renewal project of Gangxia City Village has faced failure. Although the

Image #10 Gangxia Village in Shenzhen by Luo Changwei

19

20

Case 1 Gangxia Village

handed over the reconstruction task to the

the urban village, the developer proposed a

▶ General Information

Futian District Government to do the organize

preliminary conceptual plan in communication

In 2009, the west side of Gangxia Village was

and implement work. However, in the first step

with the planning institution represented by the

demolished and became Futian Business Center.

of transformation, it is difficult to determine

government, in which a possible compensation

The renewal project covers an area of approximately

property rights. Among them, legal, illegal,

method was proposed with reference to the

220,000 square meters and the entire construction

and semi-illegal property rights are difficult to

collective interests of the village. The number

area reaches 1.4 million square meters.

distinguish, and history has left a gray property

of villagers who agreed with the compensation

rights problem in Shenzhen.

standard once reached 85%.

In 1992, after the urbanization of rural areas, relying

At the same time, when Shenzhen was

However, when the demolition of Caiwuwei

on the income from the collection of collective land

undergoing urbanization reform in 2004, apart

village, another urban renewal project in

by the government, local residents began to establish

from the traditional agricultural industries

Shenzhen, came to an end in 2007, one of the

some industries, and some families gradually gained

in a small area, Shenzhen's agriculture had

villagers refused to demolition and demanded

some savings. With the gradual influx of more than

basically disappeared. However, most farmers

a substantial increase in compensation, which

100,000 migrant workers, they began to tear down

have not really received modern industrial and

led to the stagnation of the project. This directly

the tiled houses, and build new buildings to rent

commercial training, so houses have become a

led to the immediate reduction of the number of

out their vacant houses. Gangxia Village gradually

major way for them to gain income.

villagers in Gangxia Village who agreed with

▶ The Formation of the Urban Village

expanded at this time and occupied a piece of land in

the original compensation standard to less than

the current Shenzhen city center.

From the confirmation of the urban renewal

50%.

project in 1998, until July 2006, the Shenzhen Futian District Government, Gangxia Co.,

In December 2008, as the developer could not

Ltd., with villagers as shareholders, and the

bear the huge losses, after coordination by

Shenzhen, the Shenzhen Municipal Government

developer Gemdale Group finally signed a

different parties, the developer made certain

planned to make a comprehensive renovation of

framework agreement to formally promote

concessions to the compensation conditions,

the Gangxia area. The Shenzhen Urban Planning

the overall transformation of Gangxia area.

which lead to a contract rate of 92% in February

Institute submitted a study on the reconstruction plan

By then, the population of Gangxia Village

2009. There are two standards of compensation:

of Gangxia Village through a year of work. After

has reached 68,000, of which there are 486

First, the compensation for houses within 480

that, in 2000, 2005, and 2006, they invited different

permanent villagers, about 67,000 temporary

square meters is 1:1, and for apartments over

domestic and foreign design companies to propose

tenants, land area of 151,600 square meters, and

480 square meters is 1:0.88. Second, the first

plans for the reconstruction of Gangxia Village.

590 houses.07

floor will be compensated at a ratio of 1:0.9 for

▶ The Urban Renewal Project In 1998, in order to build the central area of

In 2002, the Shenzhen Municipal Government 21

Image #11 Street of Gangxia Village in Xiasha

by Ping Shen

Image #12 Xiasha Cultural Square at Night

by Zhang Chao

commercial properties, and the second floor and In 2007, based on the current situation of

above will be compensated at a ratio of 1:0.9 22

TENANT Village Committee

HOUSEHOLDER

RESIDENT

Real Estate Company Land Planning Institution

GOVERNMENT

DEVELOPER

I Determination of Urban Renewal Area Specifically, when the government has a need to improve the urban environment, it will use corresponding incentive measures, such as introducing laws and regulations related to urban renewal in specific areas, adjusting the tax system, increasing public capital investment to enter the plot of urban renewal.

In the early stage of urban development, due to the lack of a complete policy, the project was mainly promoted by the government, and more often determined by the government’s unilateral wishes.

V Clearence of Tenant

VI Tenant Resolution

Tenant clearances are taking place in houses whose land property has been handed over to the developer. Tenants could appeal to the government in this process.

The government establishes Urban Renewal Field Work Group, acting as the interest coordinator, and providing solutions to problems arising in the process.

II Determination of the Implementer

V Contracts for Land Rights Transfer

According to the urban renewal areas provided by the government, the developer needs to contact the village committee to obtain the right to execute the urban renewal project.

And the village committee has the right to select the developer through the shareholder meeting.

Next, the developer needs to sign contracts with existing residents to obtain the land use rights granted by the residents. In this process, it is necessary to clarify the compensation method for land transfer, and compulsory demolition can be done after obtaining the consent of 95% of the residents.

III Confirmation of Urban Renewal Project After the agreement is confirmed, the developer needs to pay a deposit (50 million to 200 million yuan) to the village committee to complete the project, and publicize it at the Urban Renewal and Land Development Bureau of the area.

As a government-led project, the architectural design team is also controlled by the government. In contrast, the new urban design takes more account of the urban landscape and the interests of high-income residents.

IV Declaration of Constration Plan After that, the developer needs to submit a declaration to the government, which needs to include the total construction area of the future construction and the proportion of residential buildings, etc., to obtain the special plan of the project.

From the result, part of the demolition work was completed, while some villages in the city were retained. This was caused by the residents' dissatisfaction with the benefits obtained from the transfer of property rights.

In the process of property rights transfer, since both the households and tenants want to keep their houses, the negotiation process between the government and residents about new projects is more complicated.

VI Application for Constration Certificate

VII Implement of Urban Renewal Project

Developers need to apply for four certificates within 6-12 months thereafter, including 1. State-owned land use certificate 2.

Construction land planning permit 3.

Construction project planning permission Certificate 4. Construction Permit.

After completing the above procedures, the old house can be demolished, and the construction of the new building can be carried out. The project is generally completed within 36-48 months of obtaining the construction permit.

Figure #03 Urban Renewal Process of Gangxia Village

by Author 23

24

for houses or apartments.08

▶ The Result of Urban Renewal

of the household, the developer, and the

Case 2 Baishizhou Village

through illegal construction. Over the years,

government, they are forced to leave to find a

▶ General Information

the 0.6 square kilometer of land in Baishizhou,

new residence.

In 2018, the Shenzhen Municipal Planning

with more than 2,500 rental buildings, was once

and Land Commission approved the Urban

home to more than 150,000 people at the same

There are about four or five hundred aborigines in Gangxia Village, among which more than

In March 2011, two years after the start of the

Renewal Unit Planning of Shahe Five Villages,

time09, and home to more than a million migrant

seventy thousand people live in the rental

contract, the developer reached a contract with

Shahe Street, Nanshan District. Urban renewal

workers.

houses. At different stages of the project,

all the villagers and completed the demolition

was carried out in the form of demolition

tenant clearances are taking place in houses

of all the properties, officially starting the

compensation, using houses and cash for

At the end of 2006, to promote the resolution

whose land property has been handed over to

construction project on the west side of

compensation, resulting in 1878 billionaires.

of land-related historical issues, the villagers

the developer, and there are some large-scale

Gangxia Village. Tens of thousands of people

protests from the tenants. Although the protests

who originally lived in Gangxia Village moved

▶ The Formation of the Urban Village

plan. With the support of the Nanshan District

of these tenants affected the demolition process

to the edge of the city as they could not afford

In the 1990s, Baishizhou was an old village in

Committee and District Government, Shenzhen

to a certain extent, under the joint intervention

the land price in the city center.

Shenzhen. Most of the buildings inside were

Baishizhou Investment Development Co., Ltd.

still 3 or 4 stories. Although the income in

was established with the 2075 original villagers

the village was relatively low, everything was

as shareholders to represent the collective

in order. At this stage, Shenzhen promoted

economic interests of the villagers. Afterwards,

rural urbanization and encouraged villages

the company and the government agreed to

to set up joint-stock companies to promote

obtain the management and use rights of part of

land restructuring by taking advantage of the

the land and assets in the village.

tended to implement the old city reconstruction

collective economy. Baishizhou was one of them.

▶ The Urban Renewal Project In July 2014, under the joint promotion of

Image #13 Gangxia Village after demolish by Luo Changwei

07. Looking for Gangxia Village, https://www.szdesigncenter.org/17fMmeR60kyDhP, Accessed 01 Oct, 2021 08. Demolition and Reconstruction of Gangxia Village in Shenzhen, http://www.nbd.com.cn/articles/2009-11-12/252326.html, Accessed 01 Oct, 2021 25

Around 2000, with the improvement of the

the government and the village committee,

surrounding traffic, Baishizhou became the first

Baishizhou was approved to be included in

choice for migrant workers to settle in central

the urban renewal unit plan of Shenzhen that

Shenzhen. The villagers saw the benefits of

year. And in 2017, the Nanshan Administration

renting their houses to migrants, so they began

Institution of the Shenzhen Municipal Planning

to rebuild buildings with more than six or

and Land Committee announced the draft of

seven stories on top of the existing buildings.

the urban renewal project plan, and confirmed

Because of the historical reasons of the land

that a new project with a construction area

reform, the government can only acquiesce in

of 3.4796 million square meters will be built

the behavior of villagers to obtain rent income

after the reconstruction of urban renewal units 26

TENANT Village Committee

HOUSEHOLDER

RESIDENT

Real Estate Company Land Planning Institution

GOVERNMENT

DEVELOPER

I Determination of Urban Renewal Area Specifically, when the government has a need to improve the urban environment, it will use corresponding incentive measures, such as introducing laws and regulations related to urban renewal in specific areas, adjusting the tax system, increasing public capital investment to enter the plot of urban renewal.

On the basis of a large number of cases, the household can see the huge benefits that can be obtained by demolition, so the villagers are likely to promote the urban renewal project with the government.

V Clearence of Tenant

VI Tenant Resolution

Tenant clearances are taking place in houses whose land property has been handed over to the developer. Tenants could appeal to the government in this process.

The government establishes Urban Renewal Field Work Group, acting as the interest coordinator, and providing solutions to problems arising in the process.

II Determination of the Implementer

V Contracts for Land Rights Transfer

According to the urban renewal areas provided by the government, the developer needs to contact the village committee to obtain the right to execute the urban renewal project.

And the village committee has the right to select the developer through the shareholder meeting.

Next, the developer needs to sign contracts with existing residents to obtain the land use rights granted by the residents. In this process, it is necessary to clarify the compensation method for land transfer, and compulsory demolition can be done after obtaining the consent of 95% of the residents.

III Confirmation of Urban Renewal Project After the agreement is confirmed, the developer needs to pay a deposit (50 million to 200 million yuan) to the village committee to complete the project, and publicize it at the Urban Renewal and Land Development Bureau of the area.

Village committees have the power to choose developers, so the developer will be more dominated by the householders, in which the process of renewal will more likely to be affected by accidents.

IV Declaration of Constration Plan

For the large number of tenants, the urban renewal projects means a substantial increase in the cost of living and time.

However, under the impetus of other stakeholders, this cannot affect the progress of urban renewal.

The household has made huge gains in urban renewal. However, as the largest urban village in Shenzhen, a large number of low-income workers have suffered a huge blow in the same process.

After that, the developer needs to submit a declaration to the government, which needs to include the total construction area of the future construction and the proportion of residential buildings, etc., to obtain the special plan of the project.

VI Application for Constration Certificate

VII Implement of Urban Renewal Project

Developers need to apply for four certificates within 6-12 months thereafter, including 1. State-owned land use certificate 2.

Construction land planning permit 3.

Construction project planning permission Certificate 4. Construction Permit.

After completing the above procedures, the old house can be demolished, and the construction of the new building can be carried out. The project is generally completed within 36-48 months of obtaining the construction permit.

Figure #04 Urban Renewal Process of Baishizhou Village

by Author 27

28

in Baishizhou area. There will be 31 residential

Baishizhou, most of the buildings, whether

for the villagers, the connection between

buildings with 49-65 floors, 21 apartments, 3 super

residential or commercial, were emptied, and

Baishizhou and them was cut off, but they

high-rise office buildings with 66-79 floors, 1 office

the land was taken over by developers. Most

received quite generous compensation. Taking

building with 59 floors, and other buildings including

of the owners within the area of the first-

a contract signed by a villager in Baishizhou

new schools.10

phase renewal project have signed contracts,

as an example, his family’s demolition area

the developer has obtained the construction

is about 1,200 square meters. According

On December 28, 2018, the Planning and Land

permit, and the urban renewal project has been

to the compensation standard of 1:1.03, 15

Committee of Shenzhen Municipality officially

implemented.

resettlement houses will be obtained after the

approved the Urban Renewal Unit Planning of Shahe

demolition. At the same time, the price of

Five Villages, Shahe Street, Nanshan District. A

▶ The Result of Urban Renewal

second-hand houses in nearby communities is

number of developers aimed at the huge benefits of

As the ultimate beneficiaries, for the villagers,

between 65,000 and 75,000 CNY per square

this project. And the village collective finally chose

the connection between Baishizhou and them

meter, while the price of newly built houses is

the real estate company LVGEM China and signed an

was cut off, but they received quite generous

about 100,000 CNY.11

agreement which has many years of experience in the

compensation. As the ultimate beneficiaries,

reconstruction of the old city in the Shenzhen market.

In June 2019, Baishizhou North District began to clean up the property rights of the leased land, and the landlords who had signed the demolition compensation agreement began to notify the tenants Image #14 Daily Life in Baishizhou Village

by Ping Shen

to move out within 3 months. The government established a Baishizhou Urban Renewal Field Work Group, acting as the interest coordinator of all parties, and providing solutions to problems arising in the process of tenant clearance. For example, the impact of house demolition on students' schooling has become a major issue reported by tenants. Although the demolition will not affect the school itself, family relocation means a substantial increase in the cost of

Image #16 Baishizhou Village 2016 before demolish by Juanzong Wallpaper

living and time.

Image #15 Self Construction in Baishizhou Village

by Zhang Chao

In December 2020, more than 40,000 people left 29

09. Restart Baishizhou, https://finance.sina.cn/china/gncj/2019-09-24/detail-iicezueu7940672.d.html, Accessed 01 Oct, 2021 10. Announcement on the public announcement of the urban renewal unit plan (draft) of Shahe 5th Village, Shahe Street, Nanshan District, Shenzhen Municipal Planning and Land Resources Commission Nanshan Administration, 2017 11. Daily Economic News, http://www.sunmeltd.com/sdcjks/8561.html, accessed 01 Oct, 2021 30

DISCUSSION

四

In urban renewal projects, the decision-making process directly affects the result of the project.

Participatory decision-making is not necessarily the only correct answer to the problem of urban renewal in China, but it can help us find the problems in the existing system, so that it can become one of the ways to solve the problem in the future with the help of policy or institutional tools.

Image #17 Shibati Rd in 2015-2018 by Dasongge shi ge Daomeidan 31

32

THE POTENTIAL OF A BALANCED

With consensus everyone in the group must

to implementation, there is a lack of a core

DECISION-MAKING SYSTEM

agree to a decision for it to be adopted. To

process which can gather all stakeholders.

Although, the urban renewal is an effective way

ensure the fairness of decision-making, there

Specifically, 1. The process of establishing

to achieve short-term construction goals, expand

are several key points in the process of making

an urban renewal project is only led by the

population capacity and balance population

participatory decision-making. 12 1. Every

government; the village collective can only

distribution, it will destroy community connections

stakeholder must be committed to reaching a

put forward their needs and opinions. 2. In the

and original cultural heritage buildings, while the

consensus view. 2. Awareness of the common

process of determining the implementer of the

interests of low-income residents cannot be protected.

ground within the group is needed. This is

projects, the developer is only selected by the

So, it is important to find a balance way to process

useful for bringing the group back to if there

village committee based on its own interests

the urban renewal projects.

are disagreements. 3. Every stakeholder must

almost without the government. 3&4. The

understand the process 4. Sufficient time must

process of initiating urban renewal projects

be allowed for the process.

includes negotiation between the developer

From the perspective of the profession of architecture, it is able to contribute to the integration of the system,

and the government for future construction,

but this is also why sometimes the complexity

After clarifying the stakeholders and their goals

but the village collective has no participation.

of understanding will be missed when looking at

related to the decision-making results, we can

5. The government is not specifically involved

the political, economic, and social issues that are

find that after simplifying the process of urban

in the transfer of land use rights; the main

integrated in urban renewal. At the same time, due

renewal to a participatory decision-making

compensation methods are determined by

to the homogeneity and lack of perspectives in most

model, the four specific groups involved in

developers and villagers. 6&7. After the

architectural fields, we need a systematic strategy to

urban renewal are the government, developers,

agreement is signed, the villagers will withdraw

guide the groups to put forward their requirements

heads of households, and tenants. There is a

from the decision-making process, and the

huge difference in the distribution of power and

specific planning and construction of the future

the way they participate in the process.

will only be determined through consultation

which are ignored in many cases because of the blind spots and prejudices. Only in this way can we expand

Image #18 Merchants under Demolition

by Yu Xuefei

the potential of the space under the framework of

between the government and the developer.

the overall strategy and become the starting point for

This corresponds to the first point of

reconciling contradictions.

participatory decision-making. In the decision-

For the second point, the government,

making process of urban renewal projects,

developers and households have reached a

The participatory decision-making is the systemic

tenants do not have any policy tools or

consensus on the project. The government can

strategy we are looking for. It is a process that

legal protection. And the process of their

develop a better urban environment, and both

works to find common ground and solutions that are

opinions is entirely based on the government's

the developer and the households could have

acceptable to all and best for the group. It tries to

consciousness.

economic benefits here. Therefore, the three

avoid the alienation of minorities that majority rule can create and values everyone’s opinion equally.

33

Image #19 Housing Ownership Certificate

by Li Yu

parties can discuss the benefit distribution, During the process from project establishment

and jointly promote the progress of urban 34

TENANT Village Committee

HOUSEHOLDER

RESIDENT DEVELOPER

Real Estate Company Land Planning Institution

ARCHITECTS GOVERNMENT

I Determination of Urban Renewal Area The government's urban planning department could discuss new ideas for reconstruction based on the original space while increase the population capacity of the area through the reconstruction and consolidation of residential units, and retain specific low-cost commercial as well as infrastructure facilities.

V Clearence of Tenant

VI Tenant Resolution

Tenant clearances are taking place in houses whose land property has been handed over to the developer. Tenants could appeal to the government in this process.

The government establishes Urban Renewal Field Work Group, acting as the interest coordinator, and providing solutions to problems arising in the process.

II Determination of the Implementer

V Contracts for Land Rights Transfer

According to the urban renewal areas provided by the government, the developer needs to contact the village committee to obtain the right to execute the urban renewal project.

And the village committee has the right to select the developer through the shareholder meeting.

Next, the developer needs to sign contracts with existing residents to obtain the land use rights granted by the residents. In this process, it is necessary to clarify the compensation method for land transfer, and compulsory demolition can be done after obtaining the consent of 95% of the residents.

III Confirmation of Urban Renewal Project Architects can also discover opportunities in the site more broadly, and change the traditional urban renewal project for commercial, entertainment, and residence to integrate more functions and be multi-stage development area.

IV Declaration of Constration Plan After that, the developer needs to submit a declaration to the government, which needs to include the total construction area of the future construction and the proportion of residential buildings, etc., to obtain the special plan of the project.

VI Application for Constration Certificate

VII Implement of Urban Renewal Project

Developers need to apply for four certificates within 6-12 months thereafter, including 1. State-owned land use certificate 2.

Construction land planning permit 3.

Construction project planning permission Certificate 4. Construction Permit.

Architects can redistribute the interests of different groups with specific design schemes according to the results of participatory decision-making, which could in turn affect the decision-making process.

Figure #05 A Potential Urban Renewal Process with Balance

by Author 35

36

renewal. However, tenants are placed outside

steps, but as a result, different stakeholders

the common ground in this process as they can

have great differences in the allocation of

get a cheap living condition from the urban

time for decision making. For example, in

Government's Goals and Initiatives

villages. Reflected in the cases, the decision of

the process of the compensation negotiation

▶ Improve the appearance of the city and complete

the urban renewal project tends to be divided

between the developer and the villagers,

the phased urban development goals.

into two processes, that is, the government,

to reduce the decision-making time within

developer and households make the allocation

the village collective, the developer, as the

There is not a complete national urban renewal

of benefits for urban renewal, and the tenant

dominant player in this process, usually uses

system in China to coordinate urban renewal policies

discuss the compensation method for the

policy pressure to compress the time period

related to planning laws, land laws or urban house

affected living condition with the government.

for signing the agreement, so as to quickly

demolition laws. And since 1970 when most cities in

enter into the project implementation process.

system.

Image #20 Demolition Announcement of Baishizhou Village

by Jiemodui

China faced urban decline, until 2008 in which the

For the third point, Shenzhen’s urban renewal

However, reflected in the results, although

State Council issued the "State Council's Notice on

decision-making has certain steps, and for

this way can make a reach of some contract

different project backgrounds and conditions,

with part of the residents in short term, it also

renewal has been facing a gap in national practice

these steps will have some changes. Due to

leads to some residents deliberately prolonging

guidance. Complications of urban renewal polices,

objective reasons such as long project cycle

for a longer period to force developers to

such as complex land usage claims, the protection

and unpredictability, it is difficult to completely

compromise, in order to obtain higher benefits.

of the public interest and endemic social equality,

determine the process of decision-making at

On the one hand, this has caused the loss of

along with limited understanding of policy itself, has

the beginning. At the same time, due to the

public interests. At the same time, for the group

slowed the development of the urban renewal process

differences in the educational level of different

of villagers, the unbalanced distribution of their

across the country. Therefore, most of China's

groups, it is difficult to ensure that the decision-

interests will also lead to the overthrow of the

urban and regional planning actions and policy

making is fully understood by everyone,

previously agreed decisions.

interventions are still local initiatives.

of time, the relatively fair strategy formulated

For the whole urban renewal projects, there

The government also updates its strategy in this

in the early stage has lost its balance due to

must be many objective restrictions that make

process, realizing the transfer of land use rights

changes in external factors.

the entire decision-making process unable to

through agreements, establishing strict compliance

simply follow a set of participatory decision-

requirements for the urban planning system,

Time, the last factor affecting participatory

making models. Therefore, we need to focus

and issuing corresponding incentive measures.

decision making, has an inseparable relationship

more on the goals and abilities of different

with the determination of decision-making

groups to find the possibility of a balanced

Promoting Efficient and Intensive Land Use", urban

especially the residents. From the perspective

Image #21 Life in Baishizhou Village

by Dong Li

Including environmental aspects, the promotion of urban renewal through taxation systems, laws and regulations and other similar tools. On the supply side, improve relevant supply factors and

12. Participatory Decision-Making, People & Planet, 2018 37

38

formulate active and effective measures,

projects. conduct.

including public capital investment, technical

and some will rent out a part of their houses to

Shenzhen's economy has achieved tremendous

obtain stable economic benefits.

development in recent years, and the huge

information support, and education to promote

In some cases of forced demolition in the

demand for labor has attracted a large number

the development of urban renewal. And on the

past, at the stage of house expropriation, that

▶ Tenants who want to keep the low-cost

of migrants. Since such migrant workers cannot

demand side, through government procurement,

is, the stage when developers purchase land

shelters in big cities

afford the higher land prices in Shenzhen,

trade control and other measures to eliminate

use rights from residents, developers need

barriers to market power entry and create

to price the houses in the project. Similarly,

Due to Shenzhen's status as a special economic

villages with poor living conditions but low

demand for urban renewal.

since this process can be adjudicated by the

zone in China's reform and opening policy,

rents.

a large part of them can only choose urban

house demolition management department, the Developer's Goals and Initiatives

developer can use the interest link with the local

▶ Get more economic benefits.

government to influence the price evaluation, so that the price determination process will be

Due to China's special land property rights,

more biased towards the developers.

developers need to purchase land use rights from the government through auctions and need

Resident's Goals and Initiatives

to pay land acquisition fees to residents. For

There are different types of residents in the

developers, the government and the demolished

urban villages, which are mainly divided

people stand at both ends of the scale. Article

into households and tenants. Although they

16 of the "Regulations on the Administration of

live in the same environment, they have

Urban House Demolition and Reconstruction"

different expectations for urban renewal due to

stipulates: If the different groups fail to reach

differences in housing property rights.

a demolition compensation and resettlement agreement, the housing demolition management

▶ Households who regard the house as the

department shall make a ruling upon the

memory of the family while measure its value

application of the group concerned. Since the

as a commodity.

government has the dominant power in urban renewal projects, developers can strategically

Most of the households are the aboriginals of

allocate funds to the government and residents,

Shenzhen, or who came here before or at the

for example, by lowering the compensation

early stage of urban development in Shenzhen

price for residents to allow local governments

to obtain housing property rights. Therefore,

to obtain more benefits from the land, thereby

most of these households are 50 years old and

promoting the smoothness of urban renewal

above, have a stable economic foundation, 39

Image #22 Community Bulletin Board of Urban Village in Shenzhen by Ping Shen

40

CONCLUSION

五

In the existing system, the intervention of strong policies and the new bargaining chips of different groups have become a means to break the existing distribution of benefits from urban renewal. Since the government is both a policy maker and a stakeholder of urban renewal, architects in the external environment need to use some active tools to intervene when facing this decision-making model, and use macro strategies to help disadvantaged groups obtain ways to resist, thereby coordinating the reorganization of the entire decision-making model.

Image #23 Electricity Network in the Urban Village by Shenzhen Huajian Power 41

42

THE ROLE OF THE ARCHITECT AND THE

it. Similarly, after the completion of the land

possibility of preserving villages in the city,

projects. Compared with the former two, which

WAY OF INTERVENTION

property transfer, the architect will make the

helping to limit the initiative of the head of the

promote the power balance of different groups

The traditional role of the architect in urban

final architectural and urban design under the

household and the developer after the project

in specific steps, architects in Process 7 can

renewal projects is the space designer, driven

guidance of the government and the developer.

is determined, increasing the bargaining chip

redistribute the interests of different groups

for the tenants in the entire decision-making

with specific design schemes according to

by capital to complete the design for the client, in which loses all initiative, and serves only

Therefore, architects can be divided into three

process, and bringing the tenants into Process

the results of participatory decision-making,

as a tool for the goals of different groups.

types: those serve for government in Process 1,

2 and 5 in the decision-making system and find

which could in turn affect the decision-making

From the multi-level discussion of urban

those serve for developer in Process 3 and those

the common ground between the tenant and the

process. When the final design plan is not

planning projects to the implementation of

serve for city and public in Process 7.

other three groups.

limited to commercial and residential functions,

urban plan and even the architectural design,

the various possibilities will lead to uncertainty

architects have many opportunities to do the

For architects serving government in Process

For architects serving developers in Process

in the ultimate flow of benefits, which

change. However, only collecting data at the

1, compared to the traditional complete

3, the core interest of developers is to create

could increase the communication between

request of the government or increasing the

preservation and complete demolition plan,

economic benefits. In addition to gaining

stakeholders and architects in the decision-

plot ratio for developers could not reflect

the government's urban planning department

income through traditional sales and leasing by

making process, and increase the influence of

the social responsibility of them. Therefore,

could discuss new ideas for reconstruction

increasing the building area, architects can also

public architects in the process of balancing the

architects need to be more proactive in finding

based on the original space while increase the

discover opportunities in the site more broadly,

dominant interests

breakthrough points in the existing participation

population capacity of the area through the

and change the traditional urban renewal project

process. Only by using internal changes can

reconstruction and consolidation of residential

for commercial, entertainment, and residence.

In conclusion, architects can use the design

influence the behavior of other decision-makers

units, and retain specific low-cost commercial

This reduces the entry capital of the developer

plan as their own tool based on their position

and seek new ways of benefit distribution and

as well as infrastructure facilities. The goal

to a certain extent, can promote more smaller

to propose strategies that suit different

participatory decision-making.

of the government is to redistribute the urban

but creative developers to participate in the

interest groups and improve the decision-

population while enhancing the image of the

competition for urban renewal projects. This

making process. The optimization of the

In the urban renewal projects, architects can

city. Therefore, although this new method

also reversely promotes larger-scale developers

first three points of participatory decision-

participate in Processes 1, 3 & 7. In the process

of partial demolition and reconstruction will

to improve the rationality of planning and

making (Consensus view, common ground and

of determining the urban renewal area, the

cause a certain loss of economic benefits for

architectural design, making the interests of the

understanding of different stakeholders) can

government will seek advice from the urban

the government in urban renewal projects, as

overall residents more discussed in Process 3

allow the government, developers and residents

planning department to propose conceptual

a public functional department, this method

and 4.

to obtain a new flow of interests, which makes a

proposals for specific projects. In the process

can help control the population composition

of determining the urban renewal project,

and cost of living in specific area. In

Compared with architects who represent the

the developer will invite the architecture

regards of the long-term goals, it could be a

interests of the government and developers,

company to propose a plan and then apply to

reasonable exchange for the government. More

architects who serve the city and the public are

the government for project approval based on

importantly, this renewal method provides the

subject to fewer restrictions in urban renewal

43

balanced participatory decision-making system possible.

44

Income with high quality projects & creative strategies

Urban Environment

Capital

Infrastructure

Policy

Architect for Government

Profit

GOVERNMENT

Urban Environment

Capital

Infrastructure

Policy

DEVELOPER

Profit

GOVERNMENT

DEVELOPER

Urban Renewal Urban Landscape

Urban Renewal Compensation

Urban Landscape

RESIDENT

Compensation

RESIDENT City with a better care for the low-income residents

Living Condition

Architect for Developer

Land Property

Projects with the potential of preserving part of the village Land Property

Living Condition

Architect for Public

Figure #06 The Existing Relationship of the Stakeholders

by Author

45

Figure #07 The Potential Relationship of the Stakeholders

by Author

46

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48

Zhang Chao

(2021) by Urbanus Studio

13. Gangxia Village after demolish (2011) by Luo

FIGURES

Changwei

01. Shenzhen's Urban Growth Timeline Image by

IMAGE & FIGURE LIST

IMAGES 01. Skyline Panorama of Shenzhen (2019) by Jalvaran 02. Shenzhen Cityscape (2019) by Alamy Stock

MVRDV 14. Daily Life in Baishizhou Village (2021) by

Photo

Ping Shen 03. Handshake Buildings in Shuiwei Village

02. General Urban Renewal Process Image by Author

15. Self Construction in Baishizhou Village (2020)

(2019) by Juanzong Wallpaper

by Zhang Chao 04. Facade of Village in the City Series 07 (2018)

03. Urban Renewal Process of Gangxia Village Image by Author

16. Baishizhou Village 2016 before demolish

by Sun Haiting

(2019) by Juanzong Wallpaper 05. Facade of Village in the City Series 06 (2018)

04. Urban Renewal Process of Baishizhou Village Image by Author

17. Shibati Rd in 2015-2018 (2015) by Dasongge

by Sun Haiting

shi ge Daomeidan 06. Baishizhou Village (2020) by Zhang Chao

05. A Potential Urban Renewal Process with Balance Image by Author

18. Merchants under Demolition (2021) by Yu 07. The Reconstruction of Gangxia Village (2021)

Xuefei

by Juanzong Wallpaper

06. The Existing Relationship of the Stakeholders Image by Author

19. Housing Ownership Certificate (2020) by Li 08. The Housing Expropriation Decision (2021)

Yu

by People's Government of Nanshan District,

07. The Potential Relationship of the Stakeholders Image by Author

20. Demolition Announcement (2009) of

Shenzhen

Baishizhou Village by Jiemodui 09. Baishizhou Tangtou Old House (2020) by Liang Zhou

21. Life in Baishizhou Village (2021) by Dong Li

10. Gangxia Village in Shenzhen by (2011) Luo

22. Community Bulletin Board of Urban Village

Changwei

in Shenzhen (2021) by Ping Shen

11. Street of Gangxia Village in Xiasha (2007) by

23. Electricity Network in the Urban Village

Ping Shen

(2021) by Shenzhen Huajian Power

12. Xiasha Cultural Square at Night (2020) by

24. Longgang Six Villages Practice Exhibition 49

50