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Planning for a new era: Reconciling
   the Common Good with Private
  Development: (Re) Imagining the
      Role of the Private Sector


   Alice Charles BSc Hons PG Dip TCP MRTPI MIPI
Overview
• The emergence of planning

• Our development frenzy & role of planning

• The new shape of planning & development & the role
  of the private sector

• How the Planning Profession should respond

• Disclaimer: Whilst I am an External Member of the NAMA Planning
  Advisory Committee, views expressed in this presentation are mine
  & mine alone in my capacity as a Planning Consultant
The emergence of planning
The emergence of planning
• Response to industrialisation in late
  19th century

• Ebenezer Howard founding Garden
  City Movement

• 1947 Town & Country Planning Act -
  nationalised the right to develop land

• Purpose: To control the use of land &
  design of the urban environment for
  the ‘common good’.
Our development frenzy & the role of
            planning
What Happened?
•   Increased prosperity in the 90’s with development of multinational sector

•   As employment & income increased, house prices rocketed

•   Construction rose in response & this increased employment & income, leading to
    multiplier effect

•   Returning migrants in late 90’s & early 00’s drives demand for houses further

•   € introduced with reduced interest rates, making cheap money available so borrowing
    large amounts became norm & construction intensified

•   Bench marking drove up wages & prices further

•   As property prices rose, value of collateral increased and banks perceived risk of
    property lending fell

•   Tax incentives

•   Need to get on the property ladder

•   Property Developers were everywhere

•   Global financial meltdown & Irish banks exposed
Where was Planning?
   Culture of ‘every place should be developed’

   Politically watered down NSS

   Developers & vested interests had undue influence on plan making

   Councillors & management succumbed to pressure

   Mere ‘regard’ given to national & regional policy when Plan making.

   Little if any citizen participation, just ‘men with fields’.

   Bad development plan zonings

   Developers had little regard to statutory Plans in buying or developing land

   Banks ignored planning parameters in lending

   Bad design, overdevelopment, car dominated, poor residential environment, lack of social infrastructure

   Bad planning decisions

   ABP had to refuse or amend many poor quality developments on appeal
Where was Private Sector
              Planning?
 Public Sector Clients:
    Making Development / Local Area Plans
    Sought proper planning & sustainable development
    Lost battle in the Council Chamber


 Private Sector Clients:
    Planning & appointing Planners was an after thought
    Brought in when problem
    Job to get ‘the planning’ in record fast time
    Concerned with producing volume, rather than quality, to justify
     development
    Limited reflection / thought
The Legacy
 Collapsed economy & development sector
 Surplus partially completed or completed
  development:
       2846 Unfinished estates
       Zombie hotels & golf courses (15,000 excess bed spaces)
       Struggling private hospitals
       Vacant offices & retail
       Derelict historic properties


 Abundance of Raw Land:
     Permitted development
     Zoned land - 41,000 ha (need 12,450 ha to 2016)
     Unzoned land

 Infrastructure deficit (physical, social & recreational)
 Plethora of one off houses
Solutions Employed – NAMA & Foreign
               Banks
•   NAMA established as mechanism to deal with riskiest
    loans on Irish banks balance sheets

     –   NAMA operates within confines of NAMA Act 2009
     –   Asset management agency
     –   Acquires good & bad loans at market value from banks
     –   Requires borrowers to submit business plans for Approval
     –   Can appoint receivers
     –   c11,500 property related loans
     –   c850 debtors
     –   loan book value of €74.2 billion
     –   Assets spread throughout Ireland, UK, US & wider world
     –   Planning Advisory Committee established in 2010

•   Foreign Banks Major Global Re-structuring Teams
The new shape of development & the role
         of the private sector
Einstein.…


  “we cannot solve
  a problem out of
      the same
   consciousness
  that give it birth”
Short Term Approach: Unfinished
Estates, Zombie Hotels & Vacant Offices



            Sell     Demolish




          Retrofit   Re-Use
Long Term Approach: Planning for Common Good

       Revise NSS


 Survey, Analysis & Plan

Urban Capacity Analysis &
  Plan for Infrastructure
    Land Commission /
   Regeneration Agency

    Plan for shrinking /
    consolidated cities

     Ensure Density


Discourage one-off housing
The Future role for private
           developer
 State control land

 Respond to plan-led system

 Joint Venture Partnerships

 Masterplan led

 Consultative

 Incorporate / develop physical, social & recreational
  infrastructure
Where will development be
          concentrated?

 Gateways

 Consolidated Cities

 Docklands
How Planning Profession should
          respond?
Education & Awareness
 Courses to cover:
   –   Urban design
   –   Architecture
   –   Civil Engineering
   –   Environment
   –   Climate Change & Sustainability
   –   Economics
   –   Project Management
   –   Communication

 Understand role of Planner

 Need for Proper Planning & sustainable development
Practice
 Onus on Planner to Act in the interests of:

   – Client / employer

   – The common good

   – In accordance with IPI & RTPI Code of Conduct

   – Within the confines of legislation
Thank you!

alice@alicecharlesplanning.ie

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International Centre for Local & Regional Development Conference - Planning for a New Era: Reconciling the Common Good with Private Development 20.01.2012

  • 1. Planning for a new era: Reconciling the Common Good with Private Development: (Re) Imagining the Role of the Private Sector Alice Charles BSc Hons PG Dip TCP MRTPI MIPI
  • 2. Overview • The emergence of planning • Our development frenzy & role of planning • The new shape of planning & development & the role of the private sector • How the Planning Profession should respond • Disclaimer: Whilst I am an External Member of the NAMA Planning Advisory Committee, views expressed in this presentation are mine & mine alone in my capacity as a Planning Consultant
  • 3. The emergence of planning
  • 4. The emergence of planning • Response to industrialisation in late 19th century • Ebenezer Howard founding Garden City Movement • 1947 Town & Country Planning Act - nationalised the right to develop land • Purpose: To control the use of land & design of the urban environment for the ‘common good’.
  • 5. Our development frenzy & the role of planning
  • 6. What Happened? • Increased prosperity in the 90’s with development of multinational sector • As employment & income increased, house prices rocketed • Construction rose in response & this increased employment & income, leading to multiplier effect • Returning migrants in late 90’s & early 00’s drives demand for houses further • € introduced with reduced interest rates, making cheap money available so borrowing large amounts became norm & construction intensified • Bench marking drove up wages & prices further • As property prices rose, value of collateral increased and banks perceived risk of property lending fell • Tax incentives • Need to get on the property ladder • Property Developers were everywhere • Global financial meltdown & Irish banks exposed
  • 7. Where was Planning?  Culture of ‘every place should be developed’  Politically watered down NSS  Developers & vested interests had undue influence on plan making  Councillors & management succumbed to pressure  Mere ‘regard’ given to national & regional policy when Plan making.  Little if any citizen participation, just ‘men with fields’.  Bad development plan zonings  Developers had little regard to statutory Plans in buying or developing land  Banks ignored planning parameters in lending  Bad design, overdevelopment, car dominated, poor residential environment, lack of social infrastructure  Bad planning decisions  ABP had to refuse or amend many poor quality developments on appeal
  • 8. Where was Private Sector Planning?  Public Sector Clients:  Making Development / Local Area Plans  Sought proper planning & sustainable development  Lost battle in the Council Chamber  Private Sector Clients:  Planning & appointing Planners was an after thought  Brought in when problem  Job to get ‘the planning’ in record fast time  Concerned with producing volume, rather than quality, to justify development  Limited reflection / thought
  • 9. The Legacy  Collapsed economy & development sector  Surplus partially completed or completed development:  2846 Unfinished estates  Zombie hotels & golf courses (15,000 excess bed spaces)  Struggling private hospitals  Vacant offices & retail  Derelict historic properties  Abundance of Raw Land:  Permitted development  Zoned land - 41,000 ha (need 12,450 ha to 2016)  Unzoned land  Infrastructure deficit (physical, social & recreational)  Plethora of one off houses
  • 10. Solutions Employed – NAMA & Foreign Banks • NAMA established as mechanism to deal with riskiest loans on Irish banks balance sheets – NAMA operates within confines of NAMA Act 2009 – Asset management agency – Acquires good & bad loans at market value from banks – Requires borrowers to submit business plans for Approval – Can appoint receivers – c11,500 property related loans – c850 debtors – loan book value of €74.2 billion – Assets spread throughout Ireland, UK, US & wider world – Planning Advisory Committee established in 2010 • Foreign Banks Major Global Re-structuring Teams
  • 11. The new shape of development & the role of the private sector
  • 12. Einstein.… “we cannot solve a problem out of the same consciousness that give it birth”
  • 13. Short Term Approach: Unfinished Estates, Zombie Hotels & Vacant Offices Sell Demolish Retrofit Re-Use
  • 14. Long Term Approach: Planning for Common Good Revise NSS Survey, Analysis & Plan Urban Capacity Analysis & Plan for Infrastructure Land Commission / Regeneration Agency Plan for shrinking / consolidated cities Ensure Density Discourage one-off housing
  • 15. The Future role for private developer  State control land  Respond to plan-led system  Joint Venture Partnerships  Masterplan led  Consultative  Incorporate / develop physical, social & recreational infrastructure
  • 16. Where will development be concentrated?  Gateways  Consolidated Cities  Docklands
  • 17. How Planning Profession should respond?
  • 18. Education & Awareness  Courses to cover: – Urban design – Architecture – Civil Engineering – Environment – Climate Change & Sustainability – Economics – Project Management – Communication  Understand role of Planner  Need for Proper Planning & sustainable development
  • 19. Practice  Onus on Planner to Act in the interests of: – Client / employer – The common good – In accordance with IPI & RTPI Code of Conduct – Within the confines of legislation