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FUTURE PERSPECTIVES OF BROWNFIELDS – CASE STUDY FROM SOUTH BOHEMIA

Zuzana Dvořáková Líšková

1,a*

, Veronika Humlerová

1,b,

and Renáta Klufová

2,c

1Department of Regional Management, Faculty of Economics, University of South Bohemia, Czech republic

2Department of Applied Mathematics and Informatics, Faculty of Economics, University of South Bohemia, Czech republic

a[email protected], b[email protected], c[email protected] *Corresponding author

Keywords: Brownfields, Regional Development, Regeneration, South Bohemian Region

Abstract: Globalization affects all disciplines, including urbanism and regional development. Brownfields in the South Bohemian Region are mostly connected with previous agricultural activities, timber and mining industry, and military premises. Rural areas are not able to manage the brownfield regeneration issues without assistance from regional or government authorities or, as the case may be, without financial support provided by the EU. The aim of the paper is to classify brownfields from the point of view of their regeneration in South Bohemia. The results of a subjective brownfield classification showed that brownfields in the South Bohemian Region have a great chance for a successful regeneration. The brownfield sites are not in such a desperate conditon that would greatly hamper their chances of re-use.

JEL Classification: O18, O50, R11,

Introduction

We may still come across disused or insufficiently used areas in our cities as well as in the open country. These areas are the subject of the project draft we have submitted.. What are the reasons for their drabness and, on the other hand, what impression do such areas give to their surroundings? What can we do for them to find a new proper utilization in accordance with the sustainable development principles?

The expression ‘brownfields’ originated as the counterpart term to ‘greenfields’ and it depicts the areas that are completely or partially abandoned, with their further utilization being rather complicated mostly due to the necessity of too high investments to the area.

The English expression brownfields or, alternatively, brownfield sites has gradually become a term used by city planners all over the world. Brownfields have a very negative influence on their surroundings, causing difficulties either directly through their existence in a specific location (as an environmental or spatial problem) or indirectly through their economic or social & cultural, as the case may be, impact on the development of the whole city or region.

The following aspects must be taken into account when solutions are being sought for brownfield regeneration:

Environmental problems:

The essential environmental problem is possible pollution of soil, underground as well as surface waters caused by previous utilization of a land. Such pollution has a negative impact on the environment and may also have a direct negative influence on human health (Lafortezza

Spatial problems:

The failure to utilize brownfields is also connected with new constructions on greenfields. Open country is taken up when the latter is executed, while the brownfields that used to be utilized in the past, oftentimes located inside cities, remain lying fallow. Useless infrastructure dilapidates on brownfields while a new one is constructed on greenfields, often at high costs (Wedding 2007). Inner-city brownfields also make the spatial economy of a municipality worse. The traffic between the city itself and new developments on greenfields increases. As regards the spatial arrangement of cities, the barrier effects caused by abandoned premises, that are often large, may not be neglected either.

Economic problems:

Brownfields may be polluted, run-down buildings may be standing on them, or they may be burdened in any other manner. All these aspects increase the expenses required for the preparation of a land with respect to its new utilization. This makes them unattractive for new investors and they remain under-utilized. Because a brownfield land is not attractive, the value is decreasing not only of the land itself, but subsequently also of any lands in its surroundings. Hence, owners of properties and, after all, also public budgets suffer losses as regards their actual as well as potential incomes.

Social & cultural problems:

In most cases, any previous utilization of lands usually provided a number of jobs. When such businesses and companies were wound up, the unemployment rate subsequently increased in the affected location and its surroundings. The high unemployment rate brings along growing criminality, too. Such a location is becoming dangerous, which forces people to move out of it gradually (Ferber and all. 2006) The move-out effect is permeating into the surroundings as well, thus extending the non-attractive zone. The above mentioned barrier effect of brownfields may also be of social importance.

Abandoned buildings on brownfield areas dilapidate gradually, becoming dangerous, and the repairs they require are more and more demanding (Richter, 1998). The value of a territory with dilapidated buildings on brownfield areas suffers from aesthetic devastation which also devaluates any properties in the adjacent areas. In total, the domino effect may occur, causing overall degradation of an extended area (Thornton, 2006).

The adverse impacts of brownfields are imprinting themselves into all three pillars of sustainable development, i.e. the environmental, economic and social spheres. The existence of brownfields thus does not support , to say the least, the sustainable development as defined at the UN Conference on the Environment and Development in Rio de Janeiro in 1992. This fact emphasizes even more the necessity to regenerate brownfields.

Such regeneration should deal with the environmental, economic, material and social problems related to brownfields, making efforts to find permanent solutions for them (Roberts, 2001). The regeneration should take into account the historical continuity of the location and try to preserve it.

The brownfields classification should serve as a basic building block for deciding which sites to regenerate at first and which brownfields regenerate later. The classification is also of a great importance in determining which sites will be regenerated by private sources and which will have to use the public money.

Ackerman and Soler (2000) believe that the classification is based on two main financial risks: a risk of environmental responsibility and the expected rate of return on investment.

Clarinet (2002) claims that the classification was created when it became clear that the information obtained from the cost-benefit analysis of brownfield revitalization are insufficient. Mainly due to the fact that the input values for the analysis were necessary to obtain from developers and developers, however, often do not provide accurate and sufficient information about the prices. The classification is therefore independent of the developers´ information (Jankových – Kirschner 2005).

Individual brownfields can be classified into several categories, divided according to different selected evaluation criteria. Evaluation criterion may be, for example, the possibility of future use of the site, the degree of environmental burdens or origin of brownfields.