Brownfield Development with EU subsidies in NRW Experiences, conditions, risks
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1 Brownfield Development with EU subsidies in NRW Experiences, conditions, risks Presentation Dortmund August 2011 NRW.URBAN Partner für Land und Stadt Mai 2010 NRW.URBAN the company NRW.URBAN Service GmbH is a private company of the Land Northrhine- Westfalia and works under this firm since NRW.URBAN is based on the former LEG Stadtentwicklung with competences in city and urban development, brownfield recycling, project management. We work in more than 150 projects from our offices in Dortmund, Düsseldorf, Bonn und Aachen in total NRW. 115 employess are coming from : architecture, city engeneering, city planning, economy, geography, ecology Main customers are the cities and towns in Northrhine-Westfalia and the Land itself NRW.URBAN Partner für Land und Stadt Mai
2 NRW.URBAN Organisation NRW.URBAN Partner für Land und Stadt Mai NRW.URBAN porjects NRW.URBAN Partner für Land und Stadt Mai
3 Experiences Since 1989 we finance our projects with money from the regional economical development programme (RWP), coming from the central government, EU and from the Land NRW itself In this more than 20 years we invested this money in 55 projects with about 900 million Euros investment. We got round 555 million Euros subsidies in this projects All these projects are infrastructural projects : brownfield recycling for new industries and services, some also with technology centers and incubators for start ups. Some examples : NRW.URBAN Partner für Land und Stadt Mai Culture, design and tourism, Welterbestätte Essen, Zollverein NRW.URBAN Partner für Land und Stadt Mai
4 Working in parks NRW.URBAN Partner für Land und Stadt Mai Working in parks Bochum, Holland NRW.URBAN Partner für Land und Stadt Mai
5 From montan industry to small and medium enterprises NRW.URBAN Partner für Land und Stadt Mai From coal mining to sme s NRW.URBAN Partner für Land und Stadt Mai
6 Technology centers and start ups NRW.URBAN Partner für Land und Stadt Mai Heritage and environt protection NRW.URBAN Partner für Land und Stadt Mai
7 Heritage and environment protection NRW.URBAN Partner für Land und Stadt Mai The future : integrated developments NRW.URBAN Partner für Land und Stadt Mai
8 The future : integrated development NRW.URBAN Partner für Land und Stadt Mai Experiences and risks In all these projects we have to deal with the risks: Contamination Subsoil conditions Planning permissions Financing Time Quality Market Construction costs Or in total : project costs and normal project risks NRW.URBAN Partner für Land und Stadt Mai
9 Experiences and risks But if you take subsidies from EU, State or Land you have to deal with some other risks and details : Contract award procedures based on the european law Special conditions for subsidies coming from brussels Other special conditions coming from national law Special conditions for the programm : regional economical programm or city development programm Special conditions for the project as controlling procedures, great project procedures Defining the costs and the subsidies in front (investment list), no correction afterwords Better revenues in the projects reduce the subsidies You have to pay high interest rates, if you have to pay subsidies back Intensive reporting system Official inquiry, sometimes years later NRW.URBAN Partner für Land und Stadt Mai Conditions Actual conditions: 80 % of the non- profitable costs. That means costs minus profits for the sites a.s.o. Only projects in special areas of NRW Priority projects of the regions Conditions of EFRE and GRW (Cooperation programm between central Government and the Länder for improvement of the regional economical structure) Conditions for public subsidies in general Possible examples of projects : Brownfield recycling for new industrial areas, incubators for sme s Project must start after subsidies proposal Investment time : 36 month Rules for public tenders NRW.URBAN Partner für Land und Stadt Mai
10 Project calculation and result, example Purchase price Contamination, Soil Streets,Water, etc Parks and Trees Management Marketing Financing Costs Sales Non-profit % subsidies Difference to pay back,» interests? 5 % plus basic interest = 5,37 % = p.a. NRW.URBAN Partner für Land und Stadt Mai Wishes for urban development funds Make it simple! No complicate rules for the projects The rules only on the level of the funds, not in the projects Money from funds and from subsidies are possible to invest in the projects Rules for funds are similar to bank-money rules NRW.URBAN Partner für Land und Stadt Mai
11 Thank you for attention! Kontakt: Dr. Rolf Heyer NRW.URBAN Service GmbH Karl-Harr-Str Dortmund Tel.: 0231 / rolf.heyer@nrw-urban.de NRW.URBAN Partner für Land und Stadt Mai
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