Malgorzata Zieba, PhD. Institute of Real Estate Market

Culture, Identity and Property Market. Redevelopment of post-industrial district Zablocie in Krakow

Malgorzata Zieba, PhD. Institute of Real Estate Market Department of Real Estate and Investment EconomicsKrakow University of Economics

Dr Małgorzata Zieba [email protected]

ERES 19th Annual Conference,13th-16th June 2012, Edinburgh, Scotland

Zablocie – old industrial district of Krakow



Research goals and potential application of results

Verify impacts of culture for redevelopment of post-industrial areas according to Evans [2005, Measure for Measure: evaluating the Evidence of Culture’s

Contribution to Regeneration, Urban Studies, Vol. 42, Nos 5/6] culture contributes to Physical regeneration of the area, eg.: changes in land use and building use,

design of public space Economic regeneration, eg.: competitiveness and growth Social regeneration, eg.: social inclusion, identity, social capital, citizenship

Application of results Improving the adequacy of local government redevelopment policy

instruments Enhanced knowledge of cultural policy impacts, particularly on local

society’s quality of life and local economic development (cultural policy) Understanding development patterns of local property markets in areas

undergoing regeneration



Research rationale & hypothesis Vast literature and several studies on the cultural regeneration and its

impacts does not give clear answer how it really influences redevelopment, what its impacts on physical, economic and social development are

Problem of measuring the impacts and evaluating the effects has not been yet solved

Polish experience and research in the field of cultural regeneration is very limited – remarkable knowledge gap

Hypothesis: Public infrastructural investments, investment facilitation (i.e. zoning map) necessary for redevelopment but cultural regeneration makes the area more human, friendly, attractive, known and positively recognized



Cultural regeneration of Zablocie According to Colomb [2011], the term „cultural

regeneration” means that cultural activities, infrastructure and events, are integrated into an area regeneration strategy alongside other environmental, social and economic acitivities Claire Colomb, 2011: Culture in the city, culture for the city? The political

construction of the trickle-down in cultural regeneration strategies in Roubaix, France; Town Planning Review, vol. 82(1)2011.

Regeneration of Zablocie, follows the global trend in the reshaping of urban economies and urban regeneration based on cultural and creative industries



Theoretical debate over the role of culture in urban regeneration

Evans, G. [2005, 2004]: measuring impacts of cultural activities on urban regeneration, Wansborough, Mageean [2000]: culture of great importance for local economic development and

city marketing; significance of urban design for urban regeneration Garcia [2004]: cultural regeneration the result of emerging notion of culture as an economic asset;

cultural consumption & cultural production; sustainability of cultural investments’ results; social aspect

Colomb [2011]: significance of cultural investments for urban regeneration, urban competitiveness due to support for creative industries; limited and not fully recognized impact on social inclusion processes

Francesca et al. [2010] high value added of cultural sectors in times of global restructing of economies and industries; evaluating the culture-led regeneration

Bailey, Miles, and Stark [2004]: „overriding assumption that culture-led regeneration has a trickle-down effect insofar as it enhances the quality of life of the wider community”. They concentrate on the strengthening of pre-existing sense of identity due to cultural investments and see it as major role of culture-led regeneration

Sepe, Di Trapani [2010]: culture and creative industries as reflection of changing urban renewal policies that include identity, and social aspects more and more („cities are not just buildings and material structures, but also persons, networsk and intangible elements such as memory, history, social relationships, emotional experiences and cultural identities”)



creative industries

city competitiveness

Culture Cultural

regeneration

Production and consumption of

culture

Neglected Areas

Regeneration

Social inclusion Local identity

Economic Revival

Physical and spatial renewal

City brand



Research methods analysis of market data on property market: transaction prices and

commercial investments questionnaire (internet survey) among residents of the area, local

businessmen, and other members of local society – not completed yet

In-depth structured interviews with major investors and local government officials (strategy, culture) – not completed yet

general public opinion on Zablocie: analysis of internet discussion platforms, local newspapers, students’ opinion on Zablocie – partly completed

on-site observation, regular, twice a year photographic documentation of changes and developments since 2006

analysis of secondary sources of information: local government strategic documents, investment reports, local legal acts;



Identified disadvantaged areas in Krakow (2006)

I. Old Town, Kazimierz: historic, mix-use, centre of contemporaty metropolis

II. Old Podgorze, Zablocie: post-industrial and residential, historic

III. Zakrzowek&DebnikiIV. Krowodrza:

residential, post-industrial (old transporta railway routes and stations)

V. Old Nowa Huta: residential, historic, post-socialist townVI. Plaszow: post-industrial, railwayVII. Lagiewniki: post-industrialVIII. Nowa Huta East: surroundings of steel work



Urban regeneration areas in Krakow 2012

existing Local Urban Regeneration Programs:

1. Krakow Zablocie (2006)2. Krakow Old Town with

Jewish District Kazimierz and Old Podgorze (2008)

3. Krakow ‘old’ Nowa Huta (2008)

2

1

3



Regeneration of post-industrial district Zablocie – programming and legal frameworkStrategic development documents of the City:

Study of Spatial Development Conditions and Directions (2003)

Urban Regeneration Program for Krakow (2005) Development Strategy for Krakow (2005) Long-term Investment Plans for Krakow Local Zoning Plans Malopolski Regional Operational Program 2007-2013 Local Regeneration Program for Zablocie: 2006, modified and

updated in 2010



Regeneration area



Old Town - city centre

Zablocie



Zablocie: functional division and diversification in Local Zoning Plan

A: Old residential areas, historic, CBH

B: Post-industrial area, commercial and housing developments, historic monuments, culture, education. Strategic area

C: Post-industrial area, least developed, mostly mono-functional, commercial



Zablocie – some features of the area

Area (in hectares)

Population Density of population(people per square km)

Number of private companies

Zablocie 175 4 222Area A: 84%Area B: 5%Area C: 11%

241 677 (mostly SME up to 19 employees)

Krakow 32 700 756 529 2 313,5 104 668

0,607% 0,094% - 0,0064%

Source: Local urban regeneration programme for Zablocie, December 2008 updated version, City Council, Krakow



Zablocie – goals of the urban regeneration programme

1. Economic: stimulation of economic development

2. Social: activation, participation3. Spatial:

spatial organization, protection of natural resources and cultural heritage, organization of built environment



Transport – public investments new Kotlarski Bridge (completed and ready to use on

8th December 2001) new connection between southern

districts of Podgorze and Zablocie with Krakow inner city, northern and eastern districts

part of the strategic transport route Central Route, connecting eastern and northerndistricts of Krakow with southerndistricts and intercity roads (A4

cost 132.7 million PLN (circa €33million) 2 tram routes, 2-lane streets plus safety lanes, bicycle lanes, pedestrian

walks.



Transport – public investments City transit road: Herlinga-

Grudzinskiego Street (with Kotlarski Bridge its a part of Central Route), 4-lane road with parallel tram lanes



Transport – public investments City Fast Tram Line and several ‘regular’ tram lines along

Herlinga-Grudzinskiego, providing public transportation for new housing developments south of Zablocie and for Zablocie itself



Cultural Investments in Zablocie Museum of Contemporary Art in Krakow MOCAK Historical Museum of the City of Kraków, new

branch of the Museum - Oskar Schindler’s Enamel Factory

Plac Bohaterow Getta (Square of Ghetto Heroes) Museum Cricoteka (Taduesz Kantor artwork and art

heritage museum) – under construction



MOCAK 2004: Idea of museum of modern art emerged 2005:

City of Krakow purchases premises of former Oskar Schindler’s Enamel Factory – future location of MOCAK and Historical Museum

Ministry of Culture and President of Krakow signed agreement on financing the investment

2007: architectural project of MOCAK accepted 2009: construction starts: adaptation of 6 old buildings and

construction of one entirely new Mai 2011: official opening of MOCAK Total cost of investment: PLN 70 Million (ca. €17.5Million) Exhibition area: 10 000 square meters Most important public cultural institution contend with modern art in

Krakow



Oskar Schindler’s Enamel Factory 2002: industrial activities in the premises of the old Enamel Factory ceased 2005:

City of Krakow purchased premises of former Oskar Schindler’s Enamel Factory – future location of MOCAK and Historical Museum (Enamel Factory)

2007: Former administrative building of the Schindler’s factory became the seat of a

new branch of the Historical Museum of the City of Kraków autumn 2008:

part of the exibition opened: temporary short exibition on the history of place June 2010:

Official opening of the permanent exhibition presenting the history of Kraków and its residents under Nazi German occupation (1939–1945)

Member of International Coalition of Sites of Conscience Part of the Krakow Memory Route



Former Enamel Factory premises in 2005



Former Enamel Factory premises in 2009



Enamel Factory premises in 2009



Historical Museum of the City of Kraków, new branch of the Museum - Oskar Schindler’s Enamel Factory in 2012



Museum of Contemporary Art in Krakow MOCAK



Diamante Plaza – office building first modern office

building in Zablocie

completed in 2009 Spanish developer

Aldesa A-class offices ca. 10 000 square

meters of office space

Construction cost estimated at ca. PLN 60-70 million



Diamante Plaza – office building



Garden Residence - housing first new residential project in Zablocie Alpha Development (Greek developer) completed in 2010 451 apartments, 512 parking sites Site area: 2,52 hectares PLN 7 000 – 11 000 / sqm premises of former cosmetics factory Miraculum estimated cost ca. PLN 100 000 000



Mlyn Lofts – luxury housing unique in Krakow project of

adaptation of post-industrial building (mill) into housing – lofts

Polish developer Krakow Lofts 6-storey building, 57 apartments 2007 – 2009 adaptation and

completion Ca. PLN 15 000 / square meter



Mlyn Lofts – luxury housing, neighbouring old factory



Mlyn Lofts – under construction



College of Krakowska Akademia Constructed 2004 –

2008 Private college premises ca. 2

hectares Constructed in 3

stages



Vistula River Boulevards – green areas



Vistula River – developments on the other side



Zablocie: old and still industrial



Zablocie – multiplier effect of public investments Public investments:

Kotlarski Bridge Herlinga Road MOCAK Schindler’s Factory Tram Line Square of Ghetto Heroes

ca. PLN 300 million 2001-2010

Private investments: Office projects (Diamante Plaza

and other under construction: Enterprise Park)

Garden Residence Mlyn Lofts Przemyslowa 15 Apartments Krakowska Akademia

Ca. 500 million 2004 - 2011



Notion, recognition of the district – preliminary results of the researchSurvey among students of real estate and spatial economy 52 responses Students as focus group „general public”: assumption that studying

real estate and spatial economy makes them more knowledgeable of local development programs and problems, strategic for development areas, investments etc.

Students at bachelor, master and postgraduate level Most of them under 30 years (72%) 36% of them for the first time ever heard on Zablocie during

lectures and site-trip. 46% of students lives in Krakow They were asked about their opinion on Zablocie (open questions),

on important investments for the development, on their knowledge of cultural and tourist attractions, on the factors of Zablocie attractiveness as a place to live and/or work;



Do you think Zablocie is an attractive district?

36%

75% 75%

19%25%

45%

0%

10%

20%

30%

40%

50%

60%

70%

80%

as a place tolive

as a place towork, settle the

office of thecompany

as an area toinvest in real

estate

as a place tospend free time(culture, night

life, sport)

as a place tostudy

as a place towork



What factors, make Zablocie attractive district?

77%

72%

28%

51%

28%

30%

28%

49%

15%

4%

2%

49%

42%

30%

51%

17%

4%

2%

15%

23%

19%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Location

Public and private transportation

Low prices of properties

Close distance to the Vistula Boulevards

History, special identity of the district

No limits for new investments because ofno CBH protection

Existing local zoning plan

Availability of investment land

Cultural institutions and touristattractions

Prestige of the district

Attractive neighbourhood

an area to invest, have office, work an area to live, spend free time, recreation



79%

28%

43%

42%

64%

58%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

development of transportation facilities: KotlarskiBridge, Herlinga-Grudzinskiego Road, new tram

and bus lines

construction of commercial office buildings likeDiamante Plaza

construction of new residential buildings

opening of Museum of Contemporary Art KrakowMOCAK

opening of the Historical Museum of the City ofKrakow "Schindler's Factory"

location of the campus of the College of KrakowskaAkademia

Which investments (private, commercial, of Local Government) enhanced attractiveness and recognition of Zablocie?



Which cultural institutions, tourist attractions of Zablocie you know?

36%

11%4%

58%

Schindler's Factory

MOCAK

MHMK

none



How would you describe Zablocie (choose 3 descriptive words)?

53%

45%

6%

2%

55%

17%15%

11%

8%

2%

25%

developing area, 'withfuture'

commercial

nice

industrial

interesting

unique ’the only one likethis'

important address on thecultural map of Krakow

ugly

chaotic

neglected

unfriendly



What would make the district more attractive as location for economic activities?

55%

68%

28%

28%

34%

45%

49%

45%

0%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80%

more green and recreational areas, development ofthe Vistula Boulevards

improving the quality of public space (roads, streets,pedestrian walks, etc.)

more cultural initiatives and projects

more entertainment facilities

improving the quality and technical state of housingstock

more social infrastructure facilities (schools,kindergarten, services, shopping, etc)

more investment in technical and communicationinfrastructure

more promotion

more support for investors

others



Property market in Zablocie „Each story of regeneration begins with poetry and ends with real estate” Klunzman, K. (2004) keynote speech to Interreg III Mid-term Conference, Lille, in: Regeneration and Renewal, 19 November.

transaction prices 2006 – 2011 all types of properties: residential, land, houses database that was accessed included only

representative transactions in major residential projects like Garden Residence; hence limited number of transactions presented



Transactions and prices of land

127,47

1086,96

792,39

470,59

1495,51

176,99181,27

271,92

231,1

526,11

620,35

401,52

367,57

599,32532,86

383,62

0

200

400

600

800

1000

1200

1400

1600

2006

-01-

01

2006

-04-

01

2006

-07-

01

2006

-10-

01

2007

-01-

01

2007

-04-

01

2007

-07-

01

2007

-10-

01

2008

-01-

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2008

-04-

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2008

-07-

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2008

-10-

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2009

-01-

01

2009

-04-

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2009

-07-

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2009

-10-

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2010

-01-

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2010

-04-

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2010

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2011

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2011

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2011

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2011

-10-

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Price per square meter PLN



Transactions and prices of land in Zablocie 2006-2011

2006-03-242006-10-10

2007-04-282007-11-14

2008-06-012008-12-18

2009-07-062010-01-22

2010-08-102011-02-26

2011-09-142012-04-01

Var1

0

200

400

600

800

1000

1200

1400

1600

Var2



Transactions and prices of apartments

3121,21

5100

9570,84

4148,154804,77

18084,09

12950,0413667,45

4014,31

3301,13

4646,464617,83

8371,94

6593,26

10647,63

4972,73

3893,44

9986,53

7714,44

8457,88 8571,82

10594,8210508,81

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2006-01-01

2006-04-01

2006-07-01

2006-10-01

2007-01-01

2007-04-01

2007-07-01

2007-10-01

2008-01-01

2008-04-01

2008-07-01

2008-10-01

2009-01-01

2009-04-01

2009-07-01

2009-10-01

2010-01-01

2010-04-01

2010-07-01

2010-10-01

2011-01-01

2011-04-01

2011-07-01

2011-10-01

Price per square meter



Transactions, prices and price-trend in Zablocie 2006-2011

2006-03-242006-10-10

2007-04-282007-11-14

2008-06-012008-12-18

2009-07-062010-01-22

2010-08-102011-02-26

2011-09-142012-04-01

Var1

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Var2



Transactions and prices of houses

1666,67

2603,23

1523,81

1523,81

1167,57

0

500

1000

1500

2000

2500

3000

2006-01-01 2007-05-16 2008-09-27 2010-02-09 2011-06-24


Multifamily town-houses

750,181013,33

4857,44

0100020003000400050006000




Conclusions Infrastructural investments & regulations (hardware) had

major impact on area redevelopment but in the ‘next phase’ and longer time, cultural investments may create the image, improve the quality of life (software)

major impact on the district’s image had: public infrastructural investments cultural projects, i.e. Schindler’s Factory, MOCAK development of educational facilities

district is still perceived as neglected, industrial no consistent, strong positive image has emerged district seen as attractive because of location features,

communication & transportation, investment feasibility (zoning map, no cultural built heritage protection)

Malgorzata Zieba, PhD. Institute of Real Estate Market

Documents

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