An Analysis of Additional Building Bulk as an Incentive for Arranging Urban Renewal Projects Hsiu-yin, Ding National Chengchi University

ERES Conference 2011, Eindhoven Contents Urban Renewal in Taiwan ABB and Urban Renewal Empirical Analysis Data Variables Findings Conclusions

ERES Conference 2011, Eindhoven Why Urban Renewal The goals when urban renewal as a national level urban development policy boosting economy rising environmental quality improving infrastructure and building construction Article 1 of the Urban Renewal Act to promote a well-planned urban land redevelopment revitalize urban functions improve urban living environments to increase public interests

ERES Conference 2011, Eindhoven revolution Before 1997 Who: local governments Where: public lands and old communities How Land expropriation Land readjustment Who: developers and property owners Where: Buildings damaged in 921 earthquake Small sites in urban area How: Rights transformation Joint construction agreement

ERES Conference 2011, Eindhoven revolution Since 2005 Urban Regeneration Acceleration Scheme Who government-led regeneration projects private-led regeneration projects Where Main in public land Help private developers to invest urban renewal projects How Rights transformation Joint construction agreement

ERES Conference 2011, Eindhoven Incentives Additional building bulk Taxes of land and building Land value tax Land value increment tax Gift tax The annual business profit tax Others The Security & Exchange management authority Publicly recruit corporate shares Necessary public facilities …

ERES Conference 2011, Eindhoven Additional Building Bulk The Regulations of Bulk Reward for Urban Renewal The original building bulk is allowed Public facilities provided to the community Applying to implement the renewals at a certain time Local government defined Less than the average of local residential floor area standard

ERES Conference 2011, Eindhoven not included in the building bulk either 1.5 times of legal definition of bulk Or 0.3 times legal definition of bulk +original building bulk public facilities legal definition of bulk urban renewal area ABB public facilities for urban renewal communities △ F1 (ABB for the original bulk is higher than legal definition of bulk ) △ F2 (ABB for improving environment (standards) of livelihood ) △ F3 (ABB for a certain period) △ F4 (the construction costs for providing public goods in urban renewal site ) △ F5 (ABB for overall planning design) △ F6 (clearing and settling illegal structure households ) ABB in Taipei City

ERES Conference 2011, Eindhoven Empirical Analysis hypothesis the ABB reward could speed up the private developers to invest urban renewal model linear multi-regression model

ERES Conference 2011, Eindhoven Data Why Taipei City 72.58% applications happened in Taipei City More than 40% buildings are older than 30 years Source CPAMI website excluding the cases because of earthquake 90 cases were selected

ERES Conference 2011, Eindhoven Variables Dependent variable the interval (days) between an urban renewal business summary and a business plan was approved

ERES Conference 2011, Eindhoven Variables: independent variables original bulk higher than legal definition of bulk the construction costs for providing public facilities in the neighborhood outside the urban renewal site the applications in certain time after renewal unit announced improving environment (standards) of livelihood planning design for harmonizing with the architectures of neighborhood planning design for green buildings planning design for renewal scale clearing and settling illegal structure households

ERES Conference 2011, Eindhoven Results Independent variablesCoefficientt-statistic Constant Original bulk higher than legal definition of bulk *** The construction costs for providing public facilities in the neighborhood outside the urban renewal site The applications in certain time after renewal unit announced Improving environment (standards) of livelihood *** Planning design for harmonizing with the architectures of neighborhood *** Planning design for green buildings *** Planning design for renewal scale *** Clearing and settling illegal structure households ***

ERES Conference 2011, Eindhoven Findings 6 types of ABB have significant effects on the time of implementing urban renewal Reward ABB might speed up processing urban renewal Reward ABB may increase the time of processing urban renewal

ERES Conference 2011, Eindhoven Conclusions It is not a good idea to expect More ABB leads to faster urban renewal development ABB could powerfully speed up urban renewal development A wider influence of ABB on urban development should be carefully considered

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