Virtues and ills of private funding urban development: impasses in the actually existing joint urban operations
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Date
2016
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AESOP
Abstract
The purpose of this paper is to discuss and critically approach a planning instrument that has become increasingly popular among Brazilian city governments since the Cities Charter (Estatuto da Cidade) was approved in 2001, the Joint Urban Operation. An Urban Operation, as any public-private partnership, is a legal framework that allows the participation of private actors in the funding – and in the share of benefits – in actions of public interest. The specifics of urban operations are that they concern urban transformations in a pre-defined territory, delimited by a perimeter, and that they are funded through the selling of financial titles called CEPAC. Issued by the city and tradable as means of payment in exchange of building rights, each CEPAC is equivalent to an amount of square meters for use in additional construction area above the normal local parameters, and at the same time is a financial title whose value can increase or decrease according to the market. Urban Operations figure among those planning instruments conceived to allow the public power to capture part of the land plus-value in areas under valuation, that otherwise would be pocketed by land owners and developers alone. They have been inspired and compared in the literature to the French ZAC – Zone d’Amangement Concerté, as well as to similar Colombian experiences. Urban Operations create “strategic exceptions” to zoning law in the perimeter in which they are planned, easing limitations so that developers can build above the normal parameters for the city by acquiring CEPACs. The city monetizes the sold building rights, and by doing so, collects funds that must be reinvested in urban transformations in the same area.
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Proceedings of the IV World Planning Schools Congress, July 3-8th, 2016 : Global crisis, planning and challenges to spatial justice in the north and in the south
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