Cultural and religious heritage enhancement initiatives: A logic-operative method for the verification of the financial feasibility

The relevance to develop effective interventions for the enhancement and reuse of the disused religious heritage is increasing. In the present research, a logic-operative method for the verification of the finan- cial feasibility of a redevelopment project is proposed. The articulation of the developed methodological approach into six steps is explained. Moreover, the defined method is applied to a functional reconversion project related to a former church located in the city of Bologna (Italy) and to be carried out through the Public Private Partnership (PPP) operational tool. In particular, the new intended use to be introduce in the religious building is identified consistently with the current needs of the communities and by exam- ining the reference market demand and supply at different scales (urban, regional and national), in order to define adequate uses able to respect the historical identity and past memories of the asset, to enhance its monumental forms and to become a significant new landmark for the territory. The outputs obtained from the implementation of the proposed method attest the feasibility of the initiative from the private investor point of view. In this sense, the method can constitute a useful tool for Public Administrations to define transformation sustainable strategies on the deconsecrated heritage

Redevelopment Initiatives on Brownfield Sites: An Evaluation Model for the Definition of Sustainable Investments

With reference to brownfield sites redevelopment interventions, an innovative model for the definition of effective and financially sustainable initiatives is proposed and tested. The model borrows the operative logic of the break-even analysis (BEA). It neglects the basic assumption of BEA related to revenue linearity, by considering the real trend of the revenues. In fact, in specific contexts characterized by a real estate over supply—e.g., in small urban centers, or where a new plan includes a relevant increase in new buildings and/or the functional reconversion of existing disused complexes—the BEA hypothesis on revenue linearity could be inconsistent, as prices will tend to become depressed. In the mentioned situations, discount mechanisms on the unit prices could occur. These phenomena determine a reduction in the unit selling price in correspondence of the amount of gross floor area (GFA) increase. Taking into account the current and cogent needs of effective strategies for brownfields renovation, the innovative evaluation model is developed for supporting public and private investors’ decision processes. It could represent a valid reference in the preliminary phases of decision-making processes for public and private subjects, able to ensure the break-even point of the initiative balance sheet is reached

The optimal combinations of the eligible functions in multiple property assets enhancement

The present research concerns the procedures of concessions for the improvement and exploitation of public property assets. We propose a model that helps to define the optimal combination of novel uses in public properties. This model is an answer to the need for effective strategies to find new functions for disused buildings or abandoned areas. The model integrates the logic of the Discounted Cash-Flow Analysis (DCFA) and the goal programming for determining the new functions, to identify the macro-solution that maximizes the financial conveniences of the parties involved (Public Administration and private investor), in terms of monetary compensation for the Public Administration and return on investment for the private operator. The algorithm of the model has been applied to five existing public properties located in the city of Rome (Italy); for each property a specific procedure of concessions for the improvement of public assets can be activated and different eligible enhancement projects can be realized. The outputs generated by the optimization model are a valid decision support in all the phases of the concession procedure to identify the (public and private) strengths and weaknesses concerning the redevelopment initiatives on public properties. The effective re-use of these properties can actually help to prevent further soil consumption

Economic Evaluation of the Indoor Environmental Quality of Buildings: The Noise Pollution Effects on Housing Prices in the City of Bari (Italy)

Among environmental factors, noise represents one of the most relevant determinants on human health and on the urban quality level and, consequently, on real estate values. Thus, the noise pollution issue plays a significant role in public urban policies aimed at increasing the acoustic comfort level and creating more sustainable and comfortable cities. The real estate market is highly sensitive to noise factor and the residential prices can be strongly influenced by a high acoustic pollution rate. The present research aims to analyze the functional relationships between noise pollution and selling prices in four municipal areas of the city of Bari (Southern Italy). For each area, a study sample constituted by two hundred residential properties sold in 2017–2019 was detected for the identification of the main influential factors on prices and the investigation of the contribution of noise on them. The implementation of an econometric technique was used to obtain four different models (one for each municipal area of the city of Bari) able to explain the specific impact of noise pollution level on selling prices. From the comparison of the results obtained for each area, the outputs confirm the expected phenomena in terms of a decrease of noise component influence on residential prices from the central area to the peripheral. For the suburban area of the city of Bari, the model obtained does not include the noise pollution factor, showing a lower (scarce) importance of the environmental factor among the buyer and seller bargaining phases

An innovative methodology for the assessment of the social discount rate: an application to the European states for ensuring the goals of equitable growth

Purpose – The European Commission has established the reference value of the social discount rate (SDR) to be used in the cost-benefit analysis according to the subdivision of the states relating to the beneficiaries of the Cohesion Fund. This criterion does not allow to adequately consider the economic, social and environmental conditions of each European states for ensuring an equitable and inclusive growth. The aimof the work is to provide an innovative methodology for assessing the “adjusted” SDR according to the socioeconomic and environmental conditions that differently affect the sustainable development of each European state. Design/methodology/approach – Through the implementation of a methodological approach that consists of ordered and sequential phases and the synergic adoption of the Multi-Criteria Techniques with the Data Envelopment Analysis, a corrective coefficient of the SDR established by the European Commission is determined. Findings – The results obtained for the 27 European states highlight how the different conditions of each of them could affect the correct choice of the SDR to be used in the Cost-Benefit Analysis. Originality/value – The proposed research represents a useful reference for identifying national reference SDR values for each European state, consistent with its specificities and with the goals of inclusive growth of the countries and of social and territorial cohesion. Furthermore, the traceability of the methodology in its phases will allow to adapt the SDR to sudden events or exogenous shocks

The Public Role for the Effectiveness of the Territorial Enhancement Initiatives: A Case Study on the Redevelopment of a Building in Disuse in an Italian Small Town

The present research is focalized on public-private partnership (PPP) procedures as a driving force of urban sustainable development. The paper intends to point out the relevant role played by the public administrations in the implementation of these mechanisms aimed at degraded urban area renovation, public property assets enhancement, or ex novo realization. In this sense, in the existing reference literature, the private investor tasks and risks have been often explored, neglecting the significant public entities position. The efficiency in the use of the PPP is verified through the discounted cash-flow analysis (DCFA) implementation: the assessment of the costs and the revenues derived from the project allows the private investor to verify the financial feasibility of the initiative. In the context outlined, the public administration could contribute to the success of the intervention through a periodic fee paid to the private investor in order to ensure the financial convenience of the project. In the present research, a functional reconversion operation related to a building located in the small town of Cesano Romano (Italy) and carried out through the PPP operational tool, has been illustrated. In the analysis, a public monetary amount has been considered and determined, able (i) to guarantee the financial sustainability for the private investor and (ii) to comply with the regulatory constraints in the Italian context. Finally, a scenario analysis has been developed to identify the situation/s in which public participation is necessary for the convenience of the initiative and to quantify this monetary amount

The Evaluation in the Urban Projects Planning: A Logical-Deductive Model for the Definition of “Warning Areas” in the Esquilino District in the City of Rome (Italy)

With reference to the current focus on urban redevelopment issue, the evaluation of the projects plays a central role for the definition of effective urban development policies. In the present research, a logical-deductive model for the identification of “warning areas” is proposed. Given an urban area to be renovated, the developed methodological approach starts from the detection of the main existing architectural, historical and environmental emergencies in order to investigate the appreciation of the reference market for the higher or lower proximity to each considered urban pole. Thus, an econometric technique is implemented to examine the influence of each locational factor on selling prices, by assuming the property asset price increase as a proxy of the benefits generated by the urban redevelopment intervention for local communities. Furthermore, the proposed methodology is applied to the Esquilino district in the city of Rome (Italy), for which a relevant urge of urban regeneration is found, to orient the selection phases of the areas that need more attention from public entities

COMPLEMENTARIETA' DEI RUOLI DEI SOGGETTI COINVOLTI IN PROCEDURE DI PARTENARIATO PUBBLICO PRIVATO PER L'EFFICACIA DEGLI INTERVENTI E LA DIVERSIFICAZIONE DEI RISCHI DI MERCATO: ANALISI DI FATTIBILITA' DI UN PROGETTO DI VALORIZZAZIONE NELLA CITTA' DI ROMA

The present paper deals with the evaluation of the financial sustainability of a public property enhancement initiative, realized by a public-private partnership procedure. The development of the Discounted Cash Flow Analysis has provided for a preliminary phase in which the public and private subjects involved in the initiative have been identified, the respective roles have been specified and the costs and the revenues have been assessed. The research highlights the relevant support that, in the initial steps of the definition of an investment in public-private partnership, may result from the disaggregation and the specification of the different roles of all the subjects involved in the initiative. The functions mix provided by the enhancement process and the different management modalities allow the private investor to transfer the risks of the initiative to subjects most competent in their specific market sector. The performance indicators determined for the case study have outlined the financial feasibility of the investment for the private investor

A nonlinear model to assess the financial feasibility of the redevelopment of industrial sites in disuse

With reference to the growing need of recovery and functional reconversion of abandoned industrial sites located in urban areas, the present research intends to highlight the significance of using valid evaluation models for supporting the public subjects and private investors’ choices processes. In particular, in the paper a model to assess the financial conveniences of the parties involved in the redevelopment of disused industrial sites, has been developed. The model borrows the logical approach of the Break-Even Analysis (BEA), by introducing hypothesis more relevant to the real market mechanisms and assuming the nonlinear trend of the financial parameters. The inclusion of the scale economies mechanisms in the definition of the algorithm constitutes the innovation of the operative logic of the model, able to appropriately reproduce the empirical market phenomena, compared to the classic application of the BEA with constant parameters. The proposed model represents an effective tool to be used in the early stages of interventions planning, for orienting the urban policy decisions towards more performing projects profitable interventions, in line with the current goals of sustainable development of the territories

An analysis of the noise pollution influence on the housing prices in the central area of the city of Bari

With reference to the European goals concerning the noise pollution control, the present research aims at verifying the existence and, eventually, determining the influence level of the acoustic component on the selling prices in the residential segment. The analysis has been contextualized to the city of Bari (Southern Italy) and the study sample concerns one-hundred residential units recently sold, for which the main influencing factors in the selling price formation processes have been identified. The implemented methodological tool is a data-driven technique, that employs a genetic algorithm to identify the functional relationships among the considered variables. The application to the case study has allowed the identification of a model characterized by good statistical accuracy and an algebraic form of simple interpretation, which denotes an appreciable contribution of the noise pollution factor on the housing prices