Brownfield or Greenfield?

Transcription

1 Brownfield or Greenfield? The development decision of private sectors in relation to brownfield policy 27 November 2014 GRMD 4001 Final Year Thesis I 1

2 Content Introduction Statement of problem Definition of study area Definition of terms Goals and objectives Theoretical approach Literature review International comparison of Brownfield policies Theoretical studies of brownfield Empirical studies about land use issues in Hong Kong Justifications for the research Methodology Methodology Limitations of methods Methods of analysis 27 November 2014 GRMD 4001 Final Year Thesis I 2

3 Introduction 27 November 2014 GRMD 4001 Final Year Thesis I 3

4 Statement of problem 1. Study background Certain degree of flexibility on non-agricultural development such as constructing small houses, storing containers for not more than 2 year The government has no intention to avoid any development on agricultural land The Block Crown Lease The Melhado case in 1982 Development permission area plan (DPA) Town Planning (Amendment) Ordinance in 1990 Rural Outline Zoning Plans (OZP) 27 November 2014 GRMD 4001 Final Year Thesis I 4

5 Statement of problem 2. The present situation of brownfield in Hong Kong More than 800 hectares of brownfields New Territories (Yuen Long, North District, Tuen Mun and Tai Po) Open storages of containers, motors, chemical products, dangerous goods, building materials, recycling electronic materials, etc. Figure 1 the distribution of brownfields in New Territories in November 2014 GRMD 4001 Final Year Thesis I 5

6 Statement of problem 3. Research questions What will be the development decision made by private sectors between brownfield and greenfield? What are the motivating factors and obstacles faced by private sectors in brownfield redevelopment? What are the estimated costs of brownfield and greenfield development respectively? What are the influences of government brownfield policies on the development decision? 27 November 2014 GRMD 4001 Final Year Thesis I 6

7 Statement of problem 4. Hypotheses If the estimated development costs of brownfield is higher than that of greenfield, then the private sectors will choose to develop greenfield. If there is government brownfield policy, then the estimated development costs of brownfield is reduced. 27 November 2014 GRMD 4001 Final Year Thesis I 7

8 Definition of study area Why brownfield? Sustainable development Public opinions International practice 27 November 2014 GRMD 4001 Final Year Thesis I 8

9 Definition of terms Brownfield Vacant land or underused industrial and commercial facilities which was formerly greenfield Greenfield: Land that has never been used, where there was no need to demolish or rebuild any existing structures 27 November 2014 GRMD 4001 Final Year Thesis I 9

10 Goals and objectives To promote brownfield redevelopment in future land supply To compare and analyze the costs of brownfield and greenfield development respectively To evaluate different government policies in encouraging private development 27 November 2014 GRMD 4001 Final Year Thesis I 10

11 Theoretical approach Human/ economic geography Efficient use and management of natural resources Costs and risks of development Government policies Physical geography Environmental impacts 27 November 2014 GRMD 4001 Final Year Thesis I 11

12 Literature review 27 November 2014 GRMD 4001 Final Year Thesis I 12

13 International comparison of Brownfield policies Policy maturity Definition of Brownfield United Kingdom United States Hong Kong Brownfield regeneration previously-developed land... (CLG, 2006, p.26) Brownfield redevelopment abandoned, idled, or underused industrial and commercial facilities is complicated by real or perceived environmental contamination (USEPA, 1995, p.1) No official definition of brownfield Avoid putting emphasis of the polluted nature of brownfield (Adams et al., 2010) 27 November 2014 GRMD 4001 Final Year Thesis I 13

14 International comparison of Brownfield policies Policy maturity Policy significance of Brownfields United Kingdom United States Hong Kong Brownfield first approach Target of 50 to 60% of new housing Sustainable development: reduce urban sprawl and avoid greenfield development (Dixon, 2007, p.2381). Policy focus of revitalizing brownfield sites since the mid-1990s (Sousa, 2005) Assigning Brownfield the high priority and importance in their policies Sustainable development in HK 2030 Mentioned in Yuen Long South study 27 November 2014 GRMD 4001 Final Year Thesis I

15 International comparison of Brownfield policies Policy maturity Government s intervention United Kingdom United States Hong Kong Finding suitable brownfield for development Assembling land Providing financial support High degree of freedom to local governments (Adams et al., 2010) Government funding, technological assistance, legislative protection from liability, etc. Reduce both the monetary and hidden costs of redeveloping the brownfield sites (Sousa, 2005) No financial, technical and judiciary supports Developed data source systems storing brownfield information Classification system according to the situation of brownfield 27 November 2014 GRMD 4001 Final Year Thesis I 15

16 Theoretical studies of brownfield Assessment of policy impacts (Baing & Wong, 2012; De Sousa, 2005) and effectiveness (Swickard, 2008) Absence of brownfield policy and definition Impacts of proposed brownfield policies and programmes Sustainability analysis (Williams and Dair, 2005; Dixon, 2007) Requires on-going or completed redevelopment case Policy constraints analysis (McCarthy, 2002; Adams et al., 2010, De Sousa, 2000) Faced by government and developers E.g. ownership problem 27 November 2014 GRMD 4001 Final Year Thesis I 16

17 Empirical studies about related land issues The Probit Model (Chau & Lai, 2004; Lai & Ho, 2001a; Lai & Ho, 2002; Lai, Wong & Chau, 2011) Planning application statistics Difficulty in identifying all planning application relating to brownfields The Costs-Benefits Model (Mashayekh et al., 2012; Sousa, 2000) Costs of brownfield and greenfield development are compared correspondingly Direct and indirect cost Negotiation Model (Wang, Fang & Hipel, 2011) Allocation of costs and benefits in brownfield redevelopment projects of each stakeholders 27 November 2014 GRMD 4001 Final Year Thesis I 17

18 Justifications for the research Research gaps Brownfield development case in Hong Kong Initiation of brownfield development in Yuen Long South A private sector perspective: critical role of developers and landowners in HK A mixed approach Policy implications in the future 27 November 2014 GRMD 4001 Final Year Thesis I 18

19 Research framework Private developers Perceived/ estimated obstacles Influence Costs Influence Government policies Make decisions Brownfield development Greenfield development 27 November 2014 GRMD 4001 Final Year Thesis I 19

20 Methodology 27 November 2014 GRMD 4001 Final Year Thesis I 20

21 Methodology Research questions What will be the development decision made by private sectors between brownfield and greenfield? What are the motivating factors and obstacles faced by private sectors in brownfield redevelopment? What are the estimated costs of brownfield and greenfield development respectively? What are the influences of government brownfield policies on the development decision? Mixed-model approach Qualitative: private sectors perceptions on brownfield redevelopment Quantitative: costs comparison between brownfield and greenfield (De Sousa, 2000) 27 November 2014 GRMD 4001 Final Year Thesis I 21

22 Case study Location: Yuen Long South Justification Government s intention Acknowledgement of industrial development on agricultural land and its negative impacts on economy, environment and society Regenerating existing brownfield as the first development objective Policy implication to enhance private investment and development in the future 27 November 2014 GRMD 4001 Final Year Thesis I 22

23 2014 Policy Address...Yuen Long have...agricultural land mainly used for industrial purposes or temporary storage, or which is deserted. The Government has identified...sites for planning and engineering studies...for housing development November 2014 GRMD 4001 Final Year Thesis I 23

24 Planning and Engineering Study for Housing Sites in Yuen Long South Investigation The overall objective of the Study is to examine and optimize the development potential of the degraded brownfield land in Yuen Long South for housing purpose and other uses with supporting infrastructure and community facilities, and to improve the existing environment. Proliferation of open storage yards, warehouses, workshops and industrial uses has resulted in degradation of the rural environment. There is a need to better utilize the degraded brownfield land for beneficial uses to meet the territory s demand and to improve the living environment in Yuen Long South. 27 November 2014 GRMD 4001 Final Year Thesis I 24

25 The Potential Development Areas (PDAs) 27 November 2014 GRMD 4001 Final Year Thesis I 25

26 Future/ potential development: Low to middle density residential 27 November 2014 GRMD 4001 Final Year Thesis I 26

27 Qualitative method in collecting data Interviews Targets: developers, landowners, consulting firms Data/ information needed Perceived risks and obstacles Opinion about future brownfield policy Justifications To investigate the major obstacles that influences the estimated costs and development decisions of private sectors To explore the suggested brownfield policy for the quantitative study (De Sousa, 2000) 27 November 2014 GRMD 4001 Final Year Thesis I 27

28 Questionnaire Perceived costs by private sectors in brownfield development Obstacles to brownfield redevelopment Financial Environmental Administrative Technical Liability Potential brownfield policies and programmes Financial Clean-up policy Regulatory Information system Legal 27 November 2014 GRMD 4001 Final Year Thesis I 28

29 (De Sousa, 2000) 27 November 2014 GRMD 4001 Final Year Thesis I 29

30 A short summary Five aspects concerning the potential obstacles and government policies that may influence the perceived costs of brownfield development 1. Environmental (on-site and surrounding environment) 2. Financial/ monetary 3. Institutional/ administrative (such as land assembling) 4. Technical (such as information system) 5. Legal/ liability 27 November 2014 GRMD 4001 Final Year Thesis I 30

31 Quantitative method in collecting data Data required(of both brownfield and greenfield) Property information (size, units, area) Development cost information (acquisition, preparation, construction) Development sales/ lease information Project returns Hypothetical residential development Potential government brownfield policies and programmes (De Sousa, 2000) 27 November 2014 GRMD 4001 Final Year Thesis I 31

32 Limitations of methods Difficulty in recognizing private sectors stakeholders No-on-going brownfield redevelopment case Uncertain and fluctuate costs according to location and market variation 27 November 2014 GRMD 4001 Final Year Thesis I 32

33 Methods of analysis Qualitative approach To identify and measure the potential obstacles in brownfield redevelopment by private sectors To suggest possible government policies and programmes in brownfield redevelopment Quantitative approach Financial (pro forma) analysis of hypothetical development scenarios Brownfield and greenfield residential development Potential brownfield policies and programmes 27 November 2014 GRMD 4001 Final Year Thesis I 33

34 27 November 2014 GRMD 4001 Final Year Thesis I (De Sousa, 2000) 34

35 Anticipated results The estimated development costs of brownfield is higher than that of greenfield The private sectors will choose to develop greenfield Government brownfield policy helps reduce the estimated development costs of brownfield 27 November 2014 GRMD 4001 Final Year Thesis I 35

36 Time-table Period Before mid-january Mid-January to late-february March Procedures Preparation for data collection Data collection Data analysis 27 November 2014 GRMD 4001 Final Year Thesis I 36

37 Tentative chapter outline Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Introduction Literature review Methodology Results Analysis and discussion Conclusion and recommendations References 27 November 2014 GRMD 4001 Final Year Thesis I 37

38 References Adams, D. (2010). Brownfield development: A comparison of north american and british approaches. Urban Studies, 47(1), doi: / Anderson, K., & W. (2008). Valuing future development rights: The costs of conservation easements. Ecological Economics, 68(1-2), doi: /j.ecolecon Chau, K., & L. (2004). Planned conversion of rural land: A case study of planning applications for housing and open storage uses in agriculture zones. Environment and Planning b-planning & Design, 31(6), doi: /b3122 Chen, Y., & H. (2009). A strategic classification support system for brownfield redevelopment. Environmental Modelling and Software, 24(5), doi: /j.envsoft Cheng, F., & G. (2011). An integrative methodology to improve brownfield redevelopment planning in chinese cities: A case study of futian, shenzhen. Computers Environment and Urban Systems, 35(5), doi: /j.compenvurbsys Civil Engineering and Development Department (2014, January). Enhancing land supply strategy: Reclamation outside victoria harbor and rock cavern development. Retrieved in November 17,2014, from David Adams, C. W. (2008). Greenfields, brownfields and housing development (1st ed.) Wiley-Blackwell. De Sousa, C. (2000). Brownfield redevelopment versus greenfield development: A private sector perspective on the costs and risks associated with brownfield redevelopment in the greater toronto area. Journal of Environmental Planning and Management, 43(6), De Sousa, C. (2005). Policy performance and brownfield redevelopment in milwaukee, wisconsin. Professional Geographer, 57(2), November 2014 GRMD 4001 Final Year Thesis I 38

39 References Dixon, T. (2007). The property development industry and sustainable urban brownfield regeneration in england: An analysis of case studies in thames gateway and greater manchester. Urban Studies, 44(12), doi: / Dixon, T., & O. (2011). Critical success factors in urban brownfield regeneration: An analysis of ' hardcore' sites in manchester and osaka during the economic recession ( ). Environment and Planning A, 43(4), doi: /a43468 Dull, M., & W. (2010). Land recycling, community revitalization, and distributive politics: An analysis of epa brownfields program support. Policy Studies Journal, 38(1), doi: /j x Greenberg, M., & L. (2000). Brownfields, toads, and the struggle for neighborhood redevelopment - A case study of the state of new jersey. Urban Affairs Review, 35(5), Hayek, M., & N. (2010). Mapping industrial legacies: Building a comprehensive brownfield database in geographic information systems. Planning Practice and Research, 25(4), doi: / Lai, L., & H. (2001). Zone separation: A probit analysis of hong kong planning application statistics. Environment and Planning b- Planning & Design, 28(6), Lai, L., & H. (2002). Planning for open storage of containers in a major international container trade centre: An analysis of hong kong development control statistics using probit modelling. Environment and Planning b-planning & Design, 29(4), doi: /b12819 Lai, L., & Ho, W. (2001). Low- rise residential developments in green belts: A hong kong empirical study of planning applications.16(3-4), Lai, L., & W. (2011). Are engineering reasons zoning neutral? an empirical inquiry into development proposals in green belt and agriculture zones. Environment and Planning b-planning & Design, 38(2), doi: /b November 2014 GRMD 4001 Final Year Thesis I 39

40 References Lange, D., & M. (2004). Brownfield development: Tools for stewardship. Journal of Urban Planning and Development-Asce, 130(2), doi: /(asce) (2004)130:2(109) Lauf, S., & H. (2014). Linkages between ecosystem services provisioning, urban growth and shrinkage - A modeling approach assessing ecosystem service trade- offs. Ecological Indicators, 42, doi: /j.ecolind Lawrence Lai, W. C. (1994). Property rights and zoning. Ekistics, 61(366), Mashayekh, Y., & H. (2012). Role of brownfield developments in reducing household vehicle travel. Journal of Urban Planning and Development-Asce, 138(3), doi: /(asce)up McCarthy, L. (2002). The brownfield dual land- use policy challenge: Reducing barriers to private redevelopment while connecting reuse to broader community goals. Land use Policy, 19(4), Nijkamp, P., & R. (2002). Success factors for sustainable urban brownfield development: A comparative case study approach to polluted sites doi: /s (01) Planning and Engineering Study for Housing Sites in Yuen Long South - Investigation (2013). Retrieved November 27, 2014 from Hong Kong Special Administrative Region, The Planning Department and the Civil Engineering and Development Department Web site: Schadler, S., & M. (2011). Designing sustainable and economically attractive brownfield revitalization options using an integrated assessment model. Journal of Environmental Management, 92(3), doi: /j.jenvman Schulze Bäing, A., & Wong, C. (2012). Brownfield residential development: What happens to the most deprived neighbourhoods in england? Urban Studies, 49(14), doi: / Smith, M. D., & G. (2006). Traditional land- use planning regulation and agricultural land conservation: A case study from the USA. Planning Practice and Research, 21(4), doi: / November 2014 GRMD 4001 Final Year Thesis I 40

41 References Swickard, T. J. (2008). Regulatory incentives to promote private sector brownfield remediation and reuse. Soil & Sediment Contamination, 17(2), doi: / The Department Bureau and the Planning Department (2007, October). Hong kong 2030: Planning vision and strategy. Retrieved in November 17, 2014, from The Professional Commons (2012, March). Study on Brownfields in New Territories and Strategies for Land Development. Retrieved in November 17, 2014, from Walker, S., & B. (2010). Systems management study of a private brownfield renovation. Journal of Urban Planning and Development-Asce, 136(3), doi: /(asce) (2010)136:3(249) Wang, L., & F. (2011). Negotiation over costs and benefits in brownfield redevelopment. Group Decision and Negotiation, 20(4), doi: /s Wedding, G., & C. (2007). Measuring site- level success in brownfield redevelopments: A focus on sustainability and green building. Journal of Environmental Management, 85(2), doi: /j.jenvman Williams, K., & Dair, C. (2007). A framework for assessing the sustainability of brownfield developments. Journal of Environmental Planning and Management, 50(1), doi: / World Commission on Environment,and Development. (1987). Our common future / world commission on environment and development. Oxford: Oxford : Oxford University Press. Zollinger, B., & K. (2002). Factors influencing farmers' expectations to sell agricultural land for non- agricultural uses. Rural Sociology, 67(3), November 2014 GRMD 4001 Final Year Thesis I 41