Brownfield or Greenfield?ecyy.weebly.com/uploads/1/2/9/3/12935669/fyt_proposal_presentation... · Brownfield or Greenfield? The development decision of private sectors in relation

Brownfield or Greenfield?The development decision of private sectors in relation to brownfield policy

27 November 2014 GRMD 4001 Final Year Thesis I 1

Content


Introduction

• Statement of problem

• Definition of study area

• Definition of terms

• Goals and objectives

• Theoretical approach

Literature review

• International comparison of Brownfield policies

• Theoretical studies of brownfield

• Empirical studies about land use issues in Hong Kong

• Justifications for the research

Methodology

• Methodology

• Limitations of methods

• Methods of analysis

Introduction


Statement of problem

1. Study background• Certain degree of flexibility on non-agricultural development such as

constructing small houses, storing containers for not more than 2 year

• The government has no intention to avoid any development on agricultural land


The Block Crown Lease

The Melhadocase in 1982

Development permission

area plan (DPA)

Town Planning (Amendment) Ordinance in

1990

Rural Outline Zoning Plans

(OZP)


2. The present situation of brownfield in Hong Kong• More than 800 hectares of

brownfields

• New Territories (Yuen Long, North District, Tuen Mun and Tai Po)

• Open storages of containers, motors, chemical products, dangerous goods, building materials, recycling electronic materials, etc.


Figure 1 the distribution of brownfields in New Territories in 2011


3. Research questions• What will be the development decision made by private sectors between

brownfield and greenfield?• What are the motivating factors and obstacles faced by private sectors in brownfield

redevelopment?

• What are the estimated costs of brownfield and greenfield development respectively?

• What are the influences of government brownfield policies on the development decision?



4. Hypotheses • If the estimated development costs of brownfield is higher than that of

greenfield, then the private sectors will choose to develop greenfield.

• If there is government brownfield policy, then the estimated development costs of brownfield is reduced.


Definition of study area

• Why brownfield?• Sustainable development

• Public opinions

• International practice


Definition of terms

• Brownfield• Vacant land or underused

industrial and commercial facilities which was formerly greenfield

• Greenfield: • Land that has never been used,

where there was no need to demolish or rebuild any existing structures


Goals and objectives


To promote brownfield redevelopment in future land supply

To compare and analyze the costs of brownfield and greenfield development respectively

To evaluate different government policies in encouraging private development

Theoretical approach

• Human/ economic geography• Efficient use and management of natural resources

• Costs and risks of development

• Government policies

• Physical geography • Environmental impacts


Literature review


International comparison of Brownfield policies


“Policy maturity”

United Kingdom United States Hong Kong

Definition of “Brownfield”

• Brownfield regeneration

• “previously-developed land... ” (CLG, 2006, p.26)

• Brownfield redevelopment• “abandoned, idled, or underused

industrial and commercial facilities…is complicated by real or perceived environmental contamination” (USEPA, 1995, p.1)

No official definition of brownfield

• Avoid putting emphasis of the polluted nature of brownfield

(Adams et al., 2010)


27 November 2014 GRMD 4001 Final Year Thesis I



Policy significance of Brownfields

• “Brownfield first” approach• Target of 50 to 60% of new

housing • Sustainable development:

“reduce urban sprawl and avoid greenfield development” (Dixon, 2007, p.2381).

• Policy focus of revitalizing brownfield sites since the mid-1990s (Sousa, 2005)

• Sustainable development in “HK 2030”

• Mentioned in Yuen Long South study

• Assigning Brownfield the high priority and importance in their policies





Government’s intervention

• Finding suitable brownfield for development

• Assembling land • Providing financial support• High degree of freedom to

local governments (Adams et al., 2010)

• Government funding, technological assistance, legislative protection from liability, etc.

• Reduce both the monetary and hidden costs of redeveloping the brownfield sites (Sousa, 2005)

No financial, technical and judiciary supports

• Developed data source systems storing brownfield information• Classification system according to the situation of brownfield

Theoretical studies of brownfield

• Assessment of policy impacts (Baing & Wong, 2012; De Sousa, 2005) and effectiveness (Swickard, 2008)• Absence of brownfield policy and definition

• Impacts of proposed brownfield policies and programmes

• Sustainability analysis (Williams and Dair, 2005; Dixon, 2007) • Requires on-going or completed redevelopment case

• Policy constraints analysis (McCarthy, 2002; Adams et al., 2010, De Sousa, 2000)• Faced by government and developers

• E.g. ownership problem


Empirical studies about related land issues

• The Probit Model (Chau & Lai, 2004; Lai & Ho, 2001a; Lai & Ho, 2002; Lai, Wong & Chau, 2011) • Planning application statistics• Difficulty in identifying all planning application relating to brownfields

• The Costs-Benefits Model (Mashayekh et al., 2012; Sousa, 2000)• Costs of brownfield and greenfield development are compared

correspondingly • Direct and indirect cost

• Negotiation Model (Wang, Fang & Hipel, 2011)• Allocation of costs and benefits in brownfield redevelopment projects of each

stakeholders


Justifications for the research

• Research gaps• Brownfield development case in Hong Kong

• Initiation of brownfield development in Yuen Long South

• A private sector perspective: critical role of developers and landowners in HK

• A mixed approach

• Policy implications in the future


Research framework


Government policies

Costs

Private developers

Brownfield development

Greenfield development

Make decisions

obstacles

Perceived/ estimated

Influence Influence

Methodology


Methodology

• Research questions• What will be the development decision made by private sectors between

brownfield and greenfield?• What are the motivating factors and obstacles faced by private sectors in brownfield

redevelopment?

• What are the estimated costs of brownfield and greenfield development respectively?

• What are the influences of government brownfield policies on the development decision?

• Mixed-model approach• Qualitative: private sectors’ perceptions on brownfield redevelopment

• Quantitative: costs comparison between brownfield and greenfield

27 November 2014 GRMD 4001 Final Year Thesis I 21(De Sousa, 2000)

Case study

• Location: Yuen Long South

• Justification • Government’s intention

• Acknowledgement of industrial development on agricultural land and its negative impacts on economy, environment and society

• Regenerating existing brownfield as the first development objective

• Policy implication to enhance private investment and development in the future


• 2014 Policy Address• “...Yuen Long have...agricultural land mainly used for industrial purposes or

temporary storage, or which is deserted. The Government has identified...sites for planning and engineering studies...for housing development...”


• Planning and Engineering Study for Housing Sites in Yuen Long South – Investigation• “The overall objective of the Study is to examine and optimize the

development potential of the degraded brownfield land in Yuen Long South for housing purpose and other uses with supporting infrastructure and community facilities, and to improve the existing environment.”

• “Proliferation of open storage yards, warehouses, workshops and industrial uses has resulted in degradation of the rural environment. There is a need to better utilize the degraded brownfield land for beneficial uses to meet the territory’s demand and to improve the living environment in Yuen Long South.”


The Potential Development Areas (PDAs)



Future/ potential development: Low to middle density residential

Qualitative method in collecting data

• Interviews• Targets: developers, landowners, consulting firms…

• Data/ information needed• Perceived risks and obstacles

• Opinion about future brownfield policy

• Justifications• To investigate the major obstacles that influences the estimated costs and development

decisions of private sectors

• To explore the suggested brownfield policy for the quantitative study


Questionnaire


Obstacles to brownfield redevelopment

• Financial • Environmental• Administrative• Technical• Liability

Potential brownfield policies and programmes

• Financial • Clean-up policy• Regulatory• Information system• Legal

Perceived costs by private sectors in

brownfield development


(De Sousa, 2000)

A short summary

• Five aspects concerning the potential obstacles and government policies that may influence the perceived costs of brownfield development

1. Environmental (on-site and surrounding environment)

2. Financial/ monetary

3. Institutional/ administrative (such as land assembling)

4. Technical (such as information system)

5. Legal/ liability


Quantitative method in collecting data

• Data required(of both brownfield and greenfield)• Property information (size, units, area)

• Development cost information (acquisition, preparation, construction)

• Development sales/ lease information

• Project returns

• Hypothetical residential development

• Potential government brownfield policies and programmes


Limitations of methods

• Difficulty in recognizing private sectors stakeholders

• No-on-going brownfield redevelopment case

• Uncertain and fluctuate costs according to location and market variation


Methods of analysis

• Qualitative approach• To identify and measure the potential obstacles in brownfield redevelopment

by private sectors

• To suggest possible government policies and programmes in brownfield redevelopment

• Quantitative approach • Financial (pro forma) analysis of hypothetical development scenarios

• Brownfield and greenfield residential development

• Potential brownfield policies and programmes



Anticipated results

• The estimated development costs of brownfield is higher than that of greenfield

• The private sectors will choose to develop greenfield

• Government brownfield policy helps reduce the estimated development costs of brownfield


Time-table

Period Procedures

Before mid-January Preparation for data collection

Mid-January to late-February Data collection

March Data analysis


Tentative chapter outline

• Introduction Chapter 1

• Literature review Chapter 2

• Methodology Chapter 3

• Results Chapter 4

• Analysis and discussionChapter 5

• Conclusion and recommendationsChapter 6

• References Chapter 7


References

• Adams, D. (2010). Brownfield development: A comparison of north american and british approaches. Urban Studies, 47(1), 75-104. doi:10.1177/0042098009346868

• Anderson, K., & W. (2008). Valuing future development rights: The costs of conservation easements. Ecological Economics, 68(1-2), 437-446. doi:10.1016/j.ecolecon.2008.04.015

• Chau, K., & L. (2004). Planned conversion of rural land: A case study of planning applications for housing and open storage uses in agriculture zones. Environment and Planning b-Planning & Design, 31(6), 863-878. doi:10.1068/b3122

• Chen, Y., & H. (2009). A strategic classification support system for brownfield redevelopment. Environmental Modelling and Software, 24(5), 647-654. doi:10.1016/j.envsoft.2008.10.011

• Cheng, F., & G. (2011). An integrative methodology to improve brownfield redevelopment planning in chinese cities: A case study of futian, shenzhen. Computers Environment and Urban Systems, 35(5), 388-398. doi:10.1016/j.compenvurbsys.2011.05.007

• Civil Engineering and Development Department (2014, January). Enhancing land supply strategy: Reclamation outside victoriaharbor and rock cavern development. Retrieved in November 17,2014, from http://www.landsupply.hk/preview/download/pdfpe2/PE2_ES_Eng.pdf

• David Adams, C. W. (2008). Greenfields, brownfields and housing development (1st ed.) Wiley-Blackwell.

• De Sousa, C. (2000). Brownfield redevelopment versus greenfield development: A private sector perspective on the costs and risks associated with brownfield redevelopment in the greater toronto area. Journal of Environmental Planning and Management, 43(6), 831-853.

• De Sousa, C. (2005). Policy performance and brownfield redevelopment in milwaukee, wisconsin. Professional Geographer, 57(2), 312-327.


http://www.landsupply.hk/preview/download/pdfpe2/PE2_ES_Eng.pdf

References

• Dixon, T. (2007). The property development industry and sustainable urban brownfield regeneration in england: An analysis of case studies in thames gateway and greater manchester. Urban Studies, 44(12), 2379-2400. doi:10.1080/00420980701540887

• Dixon, T., & O. (2011). Critical success factors in urban brownfield regeneration: An analysis of ' hardcore' sites in manchester and osaka during the economic recession ( 2009 - 10). Environment and Planning A, 43(4), 961-980. doi:10.1068/a43468

• Dull, M., & W. (2010). Land recycling, community revitalization, and distributive politics: An analysis of epa brownfields program support. Policy Studies Journal, 38(1), 119-141. doi:10.1111/j.1541-0072.2009.00347.x

• Greenberg, M., & L. (2000). Brownfields, toads, and the struggle for neighborhood redevelopment - A case study of the state of new jersey. Urban Affairs Review, 35(5), 717-733.

• Hayek, M., & N. (2010). Mapping industrial legacies: Building a comprehensive brownfield database in geographic information systems. Planning Practice and Research, 25(4), 461-475. doi:10.1080/02697459.2010.511018

• Lai, L., & H. (2001). Zone separation: A probit analysis of hong kong planning application statistics. Environment and Planning b-Planning & Design, 28(6), 923-932.

• Lai, L., & H. (2002). Planning for open storage of containers in a major international container trade centre: An analysis of hongkong development control statistics using probit modelling. Environment and Planning b-Planning & Design, 29(4), 571-587. doi:10.1068/b12819

• Lai, L., & Ho, W. (2001). Low- rise residential developments in green belts: A hong kong empirical study of planning applications.16(3-4), 321-335.

• Lai, L., & W. (2011). Are engineering reasons zoning neutral? an empirical inquiry into development proposals in green belt and agriculture zones. Environment and Planning b-Planning & Design, 38(2), 322-337. doi:10.1068/b36111


References

• Lange, D., & M. (2004). Brownfield development: Tools for stewardship. Journal of Urban Planning and Development-Asce, 130(2), 109-116. doi:10.1061/(ASCE)0733-9488(2004)130:2(109)

• Lauf, S., & H. (2014). Linkages between ecosystem services provisioning, urban growth and shrinkage - A modeling approach assessing ecosystem service trade- offs. Ecological Indicators, 42, 73-94. doi:10.1016/j.ecolind.2014.01.028

• Lawrence Lai, W. C. (1994). Property rights and zoning. Ekistics, 61(366), 156-169.

• Mashayekh, Y., & H. (2012). Role of brownfield developments in reducing household vehicle travel. Journal of Urban Planning and Development-Asce, 138(3), 206-214. doi:10.1061/(ASCE)UP.1943-5444.0000113

• McCarthy, L. (2002). The brownfield dual land- use policy challenge: Reducing barriers to private redevelopment while connecting reuse to broader community goals. Land use Policy, 19(4), 287-296.

• Nijkamp, P., & R. (2002). Success factors for sustainable urban brownfield development: A comparative case study approach to polluted sites doi:10.1016/S0921-8009(01)00256-7

• Planning and Engineering Study for Housing Sites in Yuen Long South - Investigation (2013). Retrieved November 27, 2014 from Hong Kong Special Administrative Region, The Planning Department and the Civil Engineering and Development Department Web site: http://www.yuenlongsouth.hk/index.html

• Schadler, S., & M. (2011). Designing sustainable and economically attractive brownfield revitalization options using an integrated assessment model. Journal of Environmental Management, 92(3), 827-837. doi:10.1016/j.jenvman.2010.10.026

• Schulze Bäing, A., & Wong, C. (2012). Brownfield residential development: What happens to the most deprived neighbourhoods in england? Urban Studies, 49(14), 2989-3008. doi:10.1177/0042098012439108

• Smith, M. D., & G. (2006). Traditional land- use planning regulation and agricultural land conservation: A case study from the USA. Planning Practice and Research, 21(4), 407-421. doi:10.1080/02697450601173348


References

• Swickard, T. J. (2008). Regulatory incentives to promote private sector brownfield remediation and reuse. Soil & Sediment Contamination, 17(2), 121-136. doi:10.1080/15320380701870393

• The Department Bureau and the Planning Department (2007, October). Hong kong 2030: Planning vision and strategy. Retrieved in November 17, 2014, from http://www.pland.gov.hk/pland_en/p_study/comp_s/hk2030/eng/finalreport/pdf/E_FR.pdf

• The Professional Commons (2012, March). Study on Brownfields in New Territories and Strategies for Land Development. Retrieved in November 17, 2014, from http://www.legco.gov.hk/yr11-12/chinese/panels/dev/papers/dev0310cb1-1286-5-c.pdf

• Walker, S., & B. (2010). Systems management study of a private brownfield renovation. Journal of Urban Planning and Development-Asce, 136(3), 249-260. doi:10.1061/(ASCE)0733-9488(2010)136:3(249)

• Wang, L., & F. (2011). Negotiation over costs and benefits in brownfield redevelopment. Group Decision and Negotiation, 20(4), 509-524. doi:10.1007/s10726-009-9179-5

• Wedding, G., & C. (2007). Measuring site- level success in brownfield redevelopments: A focus on sustainability and green building. Journal of Environmental Management, 85(2), 483-495. doi:10.1016/j.jenvman.2006.10.018

• Williams, K., & Dair, C. (2007). A framework for assessing the sustainability of brownfield developments. Journal of Environmental Planning and Management, 50(1), 23-40. doi:10.1080/09640560601048275

• World Commission on Environment,and Development. (1987). Our common future / world commission on environment and development. Oxford: Oxford : Oxford University Press.

• Zollinger, B., & K. (2002). Factors influencing farmers' expectations to sell agricultural land for non- agricultural uses. Rural Sociology, 67(3), 442-463.


http://www.pland.gov.hk/pland_en/p_study/comp_s/hk2030/eng/finalreport/pdf/E_FR.pdf

http://www.legco.gov.hk/yr11-12/chinese/panels/dev/papers/dev0310cb1-1286-5-c.pdf

Brownfield or Greenfield?ecyy.weebly.com/uploads/1/2/9/3/12935669/fyt_proposal_presentation... · Brownfield or Greenfield? The development decision of private sectors in relation

Documents