Economic Asset

Peter van DunRobert Docter

The Ministry of Welfare, Health and Cultural Affairs, the Netherlands

Introduction

History is an important resource for thecultural, social and economicdevelopment of cities. The historic urbanfabric provides an identifiable andlivable environment. Every city has its"time": its own history, legible in theunique combination of urban structure,functions and building types: alI specificenvironmental factors that enable us toidentify the place in space and time. Thisidentifiability, being an essentialcondition for a well-temperedenvironment, is eroding rapidly these

days.

The consequences of this growth arenoticable: uncontrolled urbanisation andsocial and economical expulsion-processes are the inevitable symptoms.Increasing condensation andmonofunctionality, buildings in thebusiness centre rising out of scale,traffic-congestion, they alI lead to anincreasing erosion of the historic urbanfabric. Under economic pressure, theenvironmental identity is often overruledby international architectural standards.Unlimited growth leads toadministrative and infrastructuraluncontrolability, cultural disorientation,est rangement and how paradoxical itmay seem social and economicpauperization. And even if the historiccity center bas been resored, the result israrely more than a scenery for the well-to-do inhabitants or foreign tourists.

After the second world war towns alIover the world have grown explosively.ln industrialized countries this is due tothe economic growth (mainly in theservice-industry) and the increasingpopulation and prosperity in urbanareas. ln developing countries, the urbangrowth is due to migration and post-colonial economic development (shiftfrom agriculture to the indus trial andtrade-sector, with a concentration inurban areas).

The urban internationalisationprocess bears the seed of its own decline:on the one band the local amenities werethe reason for the settlement ofinternational business and touristfacilities, on the other band thisdevelopment is steadily destructing theamenities. This paradox is comparablewith some developments in the field ofregional tourism. An attractive town orregion .gains attention, the roads areimproved, hotels are built, more andmore provisions are made for a steadilygrowing n\lmber of tourists and visitors,until as a result of these interventions theattractiveness of the place bas vanishedand the tourists go to another unspoiltlocation, leaving a havoc of ruinedhotels, enterprises and a spoiltenvironment. The historic urbanenvironment should be protected frombeing the victim of its own success. The

The constant I y improving trafficconnections and means ofcommunication have lead to anincreasing independence of economicdevelopment. Local circumstances,distances and physical barriers are ofdecreasing importance. Especially in thecommercial and service industries theplace of settlement is becoming more orless independent of communication andtransport facilities: the head office doesnot have to be in the sa me place as thefactories, warehouses and dock yards

anymore.

31The Urban Heritage as a Cultural. Social and EconomicAsset

through which a desired qua lit y policycan be organised and supported in asubstantive way. ln the Netherlands theHistoric Buildlings and Monuments Actdoes mention 1:he possibility of protectedtownscapes 1Nith the obligation ofdrawing up a development or land-useplan. Such obligation can be explainedas an instruction to the municipality toestablish a relationship between thequality of urban design andfunctionality. On this behalfmany urbanrenewal schemes were started in the latesixties, taking, the cultural identity intoaccount.

historic towns and reg ions should befostered, without unnecessarilyfrustrating the normal economic growth.It will be necessary to find a balancebetween the conservation of the existing'city and the development of the new.Such a directed development seems to beunattractive for a quick and easy profit,but on the long run it will turn out to bethe most profitable. Therefore it willcertainly not scare off bona fideinvestors. On the contrary, they will beattracted if the local authorities appearto be serious on the subject of keepingand safeguarding the urban amenities. Alocal policy with regard to the futurevalue of the historic city will prove to beof social and economic profit.

The "revitalisation success" of manyhisioric centers shows that it is mostcertainly possible to restore theinhabitability and functionality ofimpoverished settlements whileretaining, if not reinforcing, therecognisability and identity of theexisting living environ ment. This showsthat a substantive policy is not onlyfavourable for cultural preservation, buteven acts as a stimulus for culturalcreation. And it shows, at any rate, that apolitical desire for environmentalimprovement can be successful if it hasstrong political commitment and isexpressed in the form of a practicalinstrument for an implementationpolicy. It thereby makes use of thephysical planning instruments.Introducing the historical dimension intophysical planning is mainly intended toutilise the cultural identity of alandscape or a settlement as a potentialfor new development. A professionalanalysis of the existing cultural values,problems and pote nt ions then is needed.

The present cultural, social andeconomic structures are based upon thehistoric development. Together theyform the (historic) identity of the city.Future developments should continuethis identity and not disturb it. Tomaintain acceptable living-conditionsand an identifiable and lasting living-environment in the long run, it isnecessary to formulate and maintain arestrictive development-policy, based oncontinuity of the present environmentalqualities. The historic urban heritagecan be an asset of inestimable value forthat purpose. A responsible urbandevelopment therefore will always be acombination of urban conservation andmanagement on one band, and urbanrenewal and (re)development on theother.

This manual intends to give theoutlines of an integrated approach toplanning the historic urban environmentand to give recommendations and pointsfor attention concerning the preparationand execution of a policy in that respect.

One of the guiding methods in theNetherlands was designed by theMinistry of Culture and the Ministry ofHousing and Physical Planning. Thismethod started from the existing socio-historical, structural and architectualvalues of cities and villages, and relatedthis to the necessary improvements orrenovations.

ln part II an example is given, how astrategic approach as described in part Ican be designed in practice: the JakartaKota area in lndonesia.

Surveying the Historical Identity

Although the phenomenon of "quality

of the urban environment" is receiving

more attention in the past few years. To

this date no method has been developed

With regard to the mentioned urbanrenewal ofhistoric centers, the followingcan be remarked. Although the first

~2 I Economics of Conservation

Iconcern of urban renewal was the (re)development, not only of dwellings,improvement of the impoverished living but also of othei building categories likeconditions, in the old city centres it also warehouses, churches, public works,stimulated the preservation of the public housing etc. It included also thehistoric urban fabric and building establishment of small-scale businessstructure. To support this urban renewal and th~ development of newof historic centers, .~he .gover~ment architectU!e. provided the murnclpallty wlth a

"historic interest map" (see fig. 2) I . b h .t " ff t f th .nsplre y t e poSl iVe e ec S o lS

:-~.~ h~+ ~r ~;~+"..;,. ,.;+" '...n+ QThis "historic interest map", showing

a cartographic representation of thecohesive cultural-historical values, wascombined with other inventory data.Together with:

* the technical quâlity of the building

stock;* current use and functional zoning;

* clearance or redevelopment areas;

* public works;

* draft development plan;

a synthesis map could be drawn up,resulting in a concrete program for'rehabilitation. ln this manner thehistorical value became a stimulus tocarry out high quality urban renewalwhich iricluded preservation and

.

Fig. 1. Regional Survey of problems and opportunities (Sour~e: Steef puys in "RuimtelijkeVerkenningenI990") i

JUJ}-'JVY"JJJr""' V' ",~,V"" "".1 ""UL""',

inspired ~Iso by the rather simple

implemen~ation method, it must be

possible t~ develop a similar system for

environm ntal quality management

today. Su h policy should be aimed atland deve opment, urban planning andarchitect re; in general it is aimed atred~signiqg the present urban

envlronmcf;nt.

With ~ regard to practicalimplementation this means that thecultural icomponent should be aninseparab~e part of the planning processon variou~ scale-levels, from regional tolocal. Thi~ cultural component can beintroduce~ on a cartographic basis, as

shown ab~ve.

33Heritage as a Cuitural. Social and EconomicAsset

to the development opportunites andrisks of the existing values, the planshould also be based on technical, social,functional and financial-economicfeasability. AIl these factors incombination offer a basis for an

integrated development policy.

This integrated policy includes therestoration or redevelopment of

economically unprofitable components.Unremunerative components in the plancould be supported with grant aid.Quality planning must achieve politicalcommitment through approval by themunicipal council. The execution can beregulated by executional and esthetic

qua lit y planning.

Integrated Planning

Introduction

Integrated planning is not a luxury.Investing in ad hoc projects without

systematic planning however can be a

waste.

-Formulation at the regional planning

level will be primarily directed at landdevelopment (both urban and rural),infrastructure and the stimulation ofnew opportunities as far as they do notaffect the identity of the area. A culturalhistorical survey or analysis of a region

must at least encompass:

* an analysis of the geographical

structure and the socio-economicuse of the land;

* analysis of special features,infrastucture and landmarks;

* analysis of the socio-economicutilization and structure ofsettlements within the area;

* representation of special featuressu ch as openness (visual lines,silhouette effects), accents,specific archaeological data;

* opportunities and risks of thecultural identity in the light of thedesired socio-economic

development.

Taking into account the cultural andeconomical potentions of the existingbuilding-stock, is neither a cheaper, nor amore expensive solution for the urbandevelopment, if compared with a tabularasa situation. However, it does permitthe retention and strengthening of theexisting social, economic and culturalinfrastructure. Capital will always be ascarce good, but an active planning-policy, together with a durablecommi1ment of the authorities, cancreate confidence in a healthy financialreturn on the long run.

The municipalities are responsible forthe shaping and regulating ofdevelopment opportunities. Here too theincorporation of cultural values in theearliest stage of the process is ofimportance. The regional analysis can becompleted to be fit for the municipalplanning level with:

* the socio-economic and socio-cultural structure of different

townparts;

* the physical structure of the

different townparts;

* architectural qualities.

.

Although analysis will preferably takeplace at the structure planning level, itshould be detailed to the developmentplan level. Development plans are at thisstage of great importance because theyindicate the economic feasibility of thequality policy. An analysis of strengths,weaknesses, opportunities and threatsconcerning thearea must be carriedoutin addition to the cultural-historicalanalyses. A specific model for urbandevelopment should be based on the(re- )use of existing cultural values

, (including listed buildings). In addition

ln view of the current philosophy onthe conservation of historic buildingsand urban areas, creating an economiclink between quality management andurban development is of'-the utmostimportance. Designating the appropriateinstruments and encouragingcreativeness in this respect should besubject of today's urban development

policy.

lntegrated planning of the historicenvironment means to stimulate,influence and ste~r future developments,according to democratically, accepted

~nomics of Conservation34

JAKARTA KOTA"

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~~~~~HISTORIC INTEREST "..P ,." 0"0,, .'o...",," .",", ,", CO.'.'"""O.". ,",C",..G, ".. "."C'"", "0 "' "."".'c ...GE UF ,", ..,.

~"'C":..-?--'0"..."'."G 'C ,", ...,'O." .O",." ;;~ ..'U'.M "' '.., ..,sro.'C 'O,""" ! i

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Fig. 2 Survey of the historic interest

strategic goals and by making optimaluse of the amenities and the culturalidentity of the place. A stable andcontinuous policy is essential for asuccessful planning.

on the chose~ course from the beginning.And, what i~ even more important, ailparties COnC! rned must be motivated to

collaborate. The people's and the

investor's onfidence in the future

developmen can only be gained by

creating a s und future perspective by

strategic i~tegrated planning. Everyinvestment, I every development should

be of mutu~1 interest: aIl parties should

benefit, Every private investment in theI

built environment should return

somethingto society.

Planning Strategy

After the survey of the historic urbandevelopment bas given insight in thecity's cultural identity (see chapter 2),and a diagnostic analysis of the presentsituation has given insight in the curreriturban processes, it is possible toformulate a general vision on the city'sfuture development. AlI partiesconcerned (the population, the business-community, the authorities) must agree

To definel the social, functional andspatial obje~tives of the city's futuredevelopment in general, a development

P\

35The Urban Heritage as a Cultural. Social and EconomicAsset

The goals must not be too ambitious,leaving enough" room for moderatehousing and small business in thebeginning and for a graduai growth inother sectots.

plan has to be drawn up. Thedevelopment plan is the first step to bemade in the physical planning process,and is meant to give an outlook on thespatial effects of the community's viewon future development in outlines.Depending of the scale of planning or thelocal authority's jurisdiction, thedevelopment plan can cover the region,the urban district or the city.

Of course. there will be manypossibilities for future development.with regard to the different townparts asfor the urban district as a whole. Achoice will have to be made between thevarious options. Then it is possible toformulate the aims and perspectives forthe different policy-sectors: population.economy. infrastructure. naturalenviron ment and built environmel:lt.

Urban Conservation

As far I as urban conservationprogramme~ are concerned, thefollowing 1 vels of intervention can bedistinguish d:

Redevelo ment: Slum-clearance anddemoli hment of not retainablebuildin s, followed byreconstl uction and reorganisation,of the larea, according to currentneeds. ~nevitably this brings alongradicall social and economicalchanger in the district concerned.The pauperization-process willoften De moved to another place. .

For instance: using the historicpotential of the city to stimulate tourism,means planning modern hotel-accommodation in or close to the heart ofthe city. But it also means providing goodconnections (to the airport and othertourist-attractions in the region) andsecuring public safety. Without thesebasic conditions tourists will not come. IThe goal "at tract tourism" th us can be

translated into the necessa.ry spatial andadministrative cônditions that have to beta ken into account. On their turn, theseconditions must be confronted with thesocial and spatial capacity of the historicurban structure, to be able to make adecision on the future development topursue, starting from the principle ofcultural continuity.

RenOVatlt n: Adaptation of the present

enviro ment (built up area and

public pen space) to current needsand ~ew functions, using thearchitdctural characteristics.

Restoratipn: Repair of the ptesentbuildi~gs and open space, for

appro~riate functions, conservingthe ardhitectural details.

One sh~uld always strive for arational an well-balanced mixture ofconservatio (redevelopment renovationand rest ration) and renewal/(re)develop ent, to continue thepluriformit of the environment in spaceand time. he municipality should notonly play a~ activ~ rol.e in plann~ng, butshould als provlde rn an active andconsequent urban management policy.

For another example: the attraction ofinternational business means the needofspace for (high-rise) office-buildingsclose to the city-centre, excellentconnections and communication-facilities, high-standard residential andeducational provisions and asophisticated cultural supply. AlI thesefacilities, if not present, have to berealized without disturbing or damagingthe historic environment. Therefore it isimportant to be fully alive to the spatialeffects of the goals intended on theenvironment and the potential conflictswith the historic structures and identity.

Urban Renewal

ln many c~ses it will not be possible toI

preserve t~e existing (historic) urban

eilvironmerlt. Either the technical,

economic Or social circumstances may

be an impediment, or the needs of

functional8rowth exceed the capacity of

the presenturban fabric. It is important

that the ne1 architectural developments are relate to the cultural historic

characteris ics and of high quality

Economics of Conservation36

standards. There is no sense inpreserving the historic inner city, if thesurrounding areas are left to fend forthemselves. The decline of areas in theurban periphery can cause harm to theinner city. Therefore an integratedapproach (a multi-track policy) isimperative. A number of conditions can

.be distinguished that is of vitalimportance for the realisation of therequired architectural and urbanquality: finding and using opportunitiesfor durable development (based upon ananalysis of the local characteristics), adevelopment or land-use plan to providea legal framework for executing andmaintaining the architectural qualitypolicy and permanent maintenance andpublic service. And last but no leastlocal politicians should be ambitiou~with regard to quality management.

choice of the architect and to the

architectural and urDan aspects of the

building plans.

What goes for the central governmentand the role of the Chief GovernmentArchitect, goes for the municipality aswell : many buildings are commissionedby the local authorities or influenced bythem. Think for instance of theenormous amount of housing projects,urban extensions, public utilities etc.The municipality is the authority thatgives the building permits and that isresponsible for a esthetic control. It is infact the key-person in controllingarchitectural quality.

By far the largest and most importantbuilding sector in which the authorities.are involved, is public housing. Thissector is pre-eminently fit to practice thearchitectural quality ambitions. Even ona minimal budget, it is often possible toobtain more value for money. Manyarchitects show daily that it is possible toachieve high standard architecture on alow budget. Besides, as a rule goodarchitecture means a cut-down on themaintenance budget. Practice showsthat good buildings, which areappreciated by the users and the public,are less damaged or filthy than otherbuildings. Many cities have shown thatan inhospitable environment can causefeelings of discomfort. That the oppositeholds good as weIl, is slowly gettingacross the architects, townplanners and

politicians.,.Besides the measures mentioned,

there is a range of activities andprovisions to improve the architecturalclimate.

For instance, nôt only the auihoritiesplay an important role, but also allindividual principals and other privateclients (professional and non-professional ones) àre of great influenceon the quality of the actually realisedarchitecture. They need to be convincedof the importance of good and qualityconscious behaviour in the buildingmarket. Therefore they need reliableinformation before they start building,on such topics as preliminary research,

Architectural PolicyThe authorities can improve thearchitectural climate in different ways.First of ail by set ting an example. A largeamount of money is invested every yearin buildings by commission of thegovernment. And for an even largeramount the government plays animportant role as a partner or as supplierof finance. The government (ormunicipality) therefore can influence asubstantial segment of the buildingproduction, in its rolc as a client, as theprovider of capital or grants, in asupervisory capacity and as theauthority that makes rules andregulations. Legislation and regulationscan be of substantial influence onarchitecture. Many interventions in thedai I y living environmentare the direct orindirect result of governmentcommissions. Schools, governmentbuildings, roads, viaducts, bridges,hospitals and public utilities could ail bean expression of the quality a wareness ofthe government or city council. Only ifthe authorities live up to a certainstandard in that respect, they candemand the same from the privatesector.

It is advisable to appoint a supervisorthat can play the role of "architecturalconscience". He can provide advise onprojects commissioried by the state, the

37The Urban Heritage as a Cultural. Social and EconomicAsset

the building programme and -last but

not least -the choice of architect. The

authorities could supply the necessaryinformation and documentation for

clients in the private sector .

* the quality of the public open space

and its significance for the historic

identity (if relevant) ;* the technical condition of the

buildingstock ;* other structures or public works of

historic interest (if relevant).

It is usually rather simple to combine

and synthesize these data into a survey of

the interventions required :

* Buildings that have to be renovated

or restored, or only minor

improved ;* Buildings ineligible for restoration

that must be demolished: The plan

will indicate whether or not a new

building is to be developed on the

site ;* Premises and spaces that should be

assigned a change of use ;* Restdration of public works.

The operational plan can also includean expropriation or purchase map,showing the premises that themunicipality will have to purchase(compulso,y or voluntarily). This can bethe case if they are not eligible forrestoration and should be demolished, orif they are in defiance of the historicalidentity of the area and should thereforebe redeveloped or rebuilt.

Another important target group is thegeneral public. The general public isconfronted with the architecturalenvironment every day. Therefore seekto stimulate public involvement, forexample by using exhibitions, TVprogrammes and educational courses toinform the public about the latestdevelopments in architecture and town

plànning.

And then there is what is probably themost essential party: the architect. Toimprove the quality of architecture, onemust obviously devote attention to theeducation of architects. Students whohave completed recognizedarchitectural courses, must comply withthe requirements for admission to theprofession as laid down in legislation. lnthis way title and profession can be

protected.

Prep!lring an Operational Plan

ln conservation areas a rather simplemethod of planning the necessaryinterventions can be followed. theobjectives and contents of an operational

plan may vary considerably, dependingon the character of the area. Thepreparation of an operational plan isbased on the same survey-results thatwere used in connection with the spatial

development plan.

A Municipal Council Decision

ln order to obtain political commitmentit has to be clear which areas are to bedesignated as conservation areas andwhat kind of renewal policies are to beapplied to them. This may take the formof a counCil decision, laying down themunicipality's intentions with regard tourban renewal. Although such a councildecision may be taken before thedevelopm~nt plan as a whole has beencompleteQ, a start should obviously havebeen made, to be able to monitor acoherent plan of ope rations.

Of course the municipality cannotgive full details of what is going to bedone, particulary if the decision is takenat an early stage in the planning process,but if maps showing the current state ofaffairs are available, the council should

Plans may vary in scale and do not alIhave to supply information in the samedetail. Many of the buildings in aconservation area may be structurallysound, in which case an operational planwill only be necessary to a limited extent.I t will then be sufficient to prepare a"miniplan" for such buildings as are inpoor condition and require restoration orimprovement. In such cases there is noneed to lay d()wn a detailed policy for thewhole area.

The essential data are :* the significance of the present

buildings for the historic identity ofthe area;

38 Economics of Conservation

be able to express its views on thefollowing points, which may in a laterstage be included in the preliminaryspatial development plan or the synthesismaps as mentioned above:

The most important objectives ofaesthetic quâlity management are:

* the determination of the intended

environmental quality and

perception value;* providing a legal basis for the

implementation and maintenancethereof.

ln order to achieve a consistent and

widely supported quality vision, it willnot only be necessary to conduct athorough preliminary study, but also,and particularly, to carry out anintensive debate in the local communityregarding the collective ambitionsconcerning the urban environment.After ail, only then will the broad socialand p<>litical base required for theimplementation and maintenance of theintended quality be achieved.

( I) Which sections of thestreetpattern are to be maintainedand which have to be adjusted tonew demands;

(2) Which buildings are to remainand which are to be demolished( with rough indications of theintended use of the premises);

(3) Gaps in the street-facades thatwill have to be filled in, and thegeneral purposes to be assigned tonew buildings. The position offuture building may be indicatedroughly, without further details;

(4) The intended use of any largespaces, which may be theresult ofthe demolition of existing

buildings.(5) The architectural and urban

quality that is to be strived for.

Esthetic Quality Management

The esthetic quality of the builtenvironment can be organized andplanned for a long time now. Many townsare experimenting nowadays with newforms of integrated quality planning andmanagement, including conservationand aesthetic building control. Amunicipal architectural policy can beseen as an important means for achievingan integral quality development. On thebasis of an analysis of the existing courseof affairs, it can systematically beindicated in what areas of (local)government action improvement of thequality of the environmental planning orarchitecture can be achieved. AlI policysectors which are connected withbuilding processes or in some wayinfluence the quality of the urban areawill be involved. Moreover, it isnecessary to involve the market parties(such as principals) in the policy too.Such things as cooperation with housingassociations and project developers, butalso initiatives to increase publicinterestcan be of help. It is expected that thepresence of a weil thought out policyinstrument will promote publicdiscussion on quality aspects.

With regard to , aesthetic qualitymanagement, we can distinguish thefollowing steps toward this end:

* Process analysis and evaluation

(opportunities and threats)* consultation and input

(participation)* plan formulation and design

* decision-making

* implementation

After the underlying principlesregarding the quality aspects of thefuture environmental developmentshave been determined on the basis of the(historic) analysis, it is then necessary toexpress these in operational terms. lnother words, convert them into concreteplan objectives. It must first of ali beclear that the aesthetic quality plan mustnot be $een as being nothing more than asector plan, but that the environmentalquality vision must affect aIl policyareas, from park maintenance to schoolconstruction, from traffic policy topublic utilities. in that sense we canspeak of a multi-layered policy.

The quality vision can be specified atvarious scale levels, each with its ownabstraction level. The highest at themunicipal level is the spatialdevelopment plan. The main functions

39

Also for an effective management andmaintenance a(ter the intervention,public support is indispensable, as weIlas legal security, supplied by a land-useplan. The tnunicipality should take theinitiative i~ consulting the public.

Political ~mmitmentI

Attenti~n for the cultural identity ofthe enviro~ment and for the quality of

the architdctural design must become a

self-evident factor in politicaldeciSionm t ing, especially on the local

level. A di cussion on quality can easily

be over led by financial and;administra ive regulations. However ,when the t conOmical potentions of thepresent en ironmental values are takeninto accouBt, the balance can be turned.The municipality has the dut y to set thetone in ~stablishing a daily livingenvironme~t of high quality standardsand identi~y. It should not be only thealderman : responsible for regional

planning ~ r public housing who is

responsibl for the plan, but the entire

council, i clud.ng the aldermen forfinance, e onomic affairs, education,etc., They jshould also be involved withand comm~tted to the plan.

Financial Planning

A conservation plan (or any otheroperational plan) will only be successfulif a multi-year financing scheme is addedand the necessary funds are madeavailable by the municipality. ta kinginto account the financial efforts to bemade by t~e private sector. Differentperiods of I execution are possible: aprogramme lof rive. ten or twenty years.depending Ion the quantity of theestimated tbtal cost and the availablefunds. as weIl as the investment capacityof the private sector.

The Urban Heritage as a Cu/tura/ .Socia/ and Economic Asset

and the infrastructure and theirinterrelations will be indicated in thisplan. The specific features of the siteinvolved can be roughly defined at thisplan level. On the basis of this generaloutline a more detailed description canbe given for the various components,either in geographical sense or as regardscertain subjects (dwellings, traffic,public utilities). The smallest scale levelis that of the (re) development or urbanrenewal plan. ln this plan it can be veryspecifically indicated what the intendedenvironmental or external appearanceqùalities are.

The plan (it is better to speak ofdesign: it is, after alI, desired that acreative component is incorporated onthe basis of the analysis data) is thenexpressed in operational terms for theimplementing parties. Thus, forexample, it is not only the planners whoneed to know within which frameworkthe evaluation should take place, but theutility companies, the civil engineeringservices, the housing services, the fireservices and the police must also be fullyaware of their responsibilities and dutiesin this respect (com,pare with, e.g.shutter regulations, advertising,regulations and the like).

Focal points when describing thedesired environmental externalappearance quality are structuralfeatures (functional and spatialrelationship between public space andbuilt-up areas), pattern features (built-up areas and public space; spreading offunctions). Characteristics andambience, architectural style(s), detailsof architecture and urban design and

management aspects.

.Public SupportThe support of the residents and otherlocal parties is essential for an effectiveand succesful approach inenvironmental improvement andmaintenance. Without a substantialinterest of a representative part of thepeople concerned, an integratedapproach has no chance. An I:ffectiveand timely communication between theresidents and the professionals shouldsafeguard a meaningful influenc:e on the

planning-process.

ln deciding the amount of money to bemade available for the execution of theplan, the municipal council could alsotake into a(;count the capacity of thelocal building-industry, the availabilityof building materials and the expectedpositive side-effects on local

employment.

Economics of Conservation40

an equal l (conunercial) basis. Public

private partnerships (betweenmunicipalfty and priva te developer) canbe applicable in the following situations:

* the rpunicipality wishes ta realise

prajqcts, but daes nat have

(sufftcient) financial means;

Different financing systems are

possible. The most usable are:

* grants

* tax-reductions and/or tax-facilities

* loans (mortages)

* public-private partnership

Grants bear the risk to neglect theprivate owner's own economicresponsibility, which in the long termwill appear not to be sustainable. Alsothe flow of public capital to the priva tes~ctor will not always be politicanyaccepted. Tax-reductions win have therelative disadvantage they favourhigher income-groups. Tax-facilities, inthe form of low V A T-rates or low land-orreal-estate taxes, can offer an alternativewith more benefit for the lower income

groups. Special tax-regulations keepnormal financing-systems intact, butoffer favourable conditions for privateinitiative, providing there is enoughprivate capital available. To bring downthe costs for improvement to anacceptable level, in many cases grantswin be indispensable. For grants it isadvisable to create a separate fund, withsupply of sponsor money and/orgovernment money, from which privaterehabilitation can be subsidized. Loansand mortages are based on the principalof the owner's economic responsibilityand require the least public money. lnthe long run the invested capital willreturn (revolving fund). Themunicipality could provide financialsupport for the eligible restoration or(re)development costs in the form of aloan or a mortgage, at market interestrates or lower. Or by giving security to acommercial bank.

* the ~unicipality wishes to be sure

that : with the aid of private

ente t rise-certain projects are

reali ed or operated in a certain

way;

* the ~unicipality wishes to use the

expettise of private enterprise;

* the tnunicipality -as landowner-

wish4s to ensure proper realizationof t~e plan, together with other

Iland<)wners,

* priv~te enterprises wish to develop

a prd)ect, but are not able to do so

with<ilut cooperation of the

mun~cipality,

* private enterprises investigate

possibilities of cooperation with themunicipality as an opportunity forprofit and continuity of their

busi~ess.

For p~blic priva te partnershipdifferent i scenarios are possible,dependen~ of the landownership. ln thecase of Northern Jakarta (see part Il) thecontributi~n of the municipality is notfinancing,! but creating conditions, bymaking ! land and infrastructureavailable. f-\lso the drawing up of urbanplans and *upplying civil servants for thenecessary implementation of the planscan be a substantial contribution.The eligible restoration costs can be

defined as the building costs thatnecessarily have to be made to maintainor restore the historic value of thebuilding (the present materials andconstructions). The eligible(re)development costs are the extra coststhat necessarily have to be made tomatch the required architecturalstandards.

I t is of I course thinkable to make acombinati~n between the differentfinancing systems, depending on theactual si~uatiion, the proportionalownership "etc. It can be advisable forexample to give the accent on grants inthe first years to get the balI rolling,whilst at the end of plan-period the grantelement \\jill be reduced in favour ofloans. I

ln public-private partnerships, the

public and private sector join forces on

The Urban Heritage as a Cultural. Social and Economic Asset 41

This system is shown in the following

figure:

Whatevdr financing system is chosen,

the muni~ipality remains the main

initiator, ~nly the municipality can

decide about the most favourable

financing i!n the circumstances, taking

the necessary continuity and the desired

future soc'al structure into account,

Even if a r habilitation fund is created,

ill which rivate investors participate,

the authori ies have the dut y to watch for

dnough a tention for the commonIihterest,

Difision or eligible restoration costs in grants andloan

Eligible restorat-

ion costs as a

percentage of the

total costs

p/an period in years

0- 34 -67-/0

60% grantsloan

Total

PART Il

CASE STUDY

JAKARTA

Fig. 3. In the Kota area a// tinie-/ayers are present

worse as a i result of economic activity

moving S~ th. Besides the special

ptoblems o the many poor inhabitants of

~orthern J karta, there is the problem

offrequent flooding, either from ri versand canais, Or from the sea. The bedding

down of t ! e soil, accelerated by theeffects of excessive ground waterextraction nd the rise of the sea level,

work1ogether to make the problem evenmore seriou$. Groundwater extraction isalso the cause of salt water intrusion.

Introduction

Jakarta is one of the metropolis of theworld. The city has a fast growingpopulation, increasing from 7 million in1990 to an expected 15 million in 2,000.Northern Jakarta has large residentialareas in which poor inhabitants areconcentrated, living in conditions thatare below standard and lackingopportunities to earn a proper living.Already now there is a shortage ofemployment and this situation is getting

~

Economics of Conservation42

rectangulat street pattern, the parceling,the building scale and the typical

architectu~e.

Another problem is surface water

pollution with its negative effects on the

marine ecology and in such way on the

source of income of many small

fishermen along the cost. ! ln the b~ginning of this century, thetirban development gets a moremetropolit n dimension, which reflectsupon the s ale and architectural imageof the b ildings : the large officebuildings n the south-eastern part ofI1I:ota (clos to the Kota railway station)mark a di ferent period in the urban~istory. B th periods contribute equallyto the his oric character. As a thirdcategory t e post war redevelopment hasbeen indi ted. These areas have losttheir his oric character (althoughsometimes the original street pattern hasbeen r spected). The historicinfrastruct re, warehouses, residentialareas and dministrative centres are stillpresent in today's urban structure andrepresent not to be neglected cultural,economic nd social potential that can be

revitalizedf

ln general there is an inefficient use ofspace and lack of expansion possibilitesfor the Tanjung Priok harbour.

This general economic decline ofNorthern Jakarta bas also its effect onthe state of repair of infrastructure andbuildings. This is especially apparent inhistoric parts of the area such as Kotaand Sunda Kelapa, where the urbanheritage is threatened by lack ofmaintenance. Opportunities are getinglost to take advantage of this heritage asa means of strengthening the identity ofJakarta and thus strengthening the city'sposition among its competitors in therapidly developing world of South-EastAsia.

Analysis

The starting point of the case-study is ahistorical analysis of the city of Jakarta,by which the geographical, socio-economic process of the settlement isdescribed and today's socio-culturalstructure and appearance are analysed.The description must also include the( economic and political) elements ofdisruption of the development process.

Althoug~ conservation opportunitiesare great, one must prevent that theprotectio~ bf the urban heritage leads tocreating aq open-air museum. The town,being a dynamic, living environment,cannot be ~uspended in the past. Still itwill be necessary to find solutions for theincreasinglthreats and da mages to thehistoric rrban fabric that occurnowadays.l A restrictive policy is notnecessaril)[ an obstruction for economicdevelopment : heritage and amenityplanning qan have a positive impact onpublic confidence and on investments byexisting aqd new businesses.

From a historical point of view, themost interesting part of North Jakarta isthe Kota (and Glodok) area. Here lies,founded in the l6th century as a tradepost near Jakarta Bay and CiliwungRiver, the origin of the Jakarta as known

today., A brie ~ diagnostic survey indicates

that some of the most urgent problems

are :The success of the settlement was -

and in fact still is- based upon the mainfunctions transport and trade. From the16th century onwards, on the basis ofthese two main functions, Jakarta hasdeveloped to a governmental andcultural centre of great importance. Thehistoric image of the Kota area can beroughly divided into two periods: thetraditional historic city ( 17th -19thcentury) and the modern (early 20thcentury) period. The main features ofthe traditional historic city are the

Economic Ousting

The free market makes it impossible forsmall busipesses and low-income groupsto survive in the city centre on the longrun. Stronger economic functions willsteadily ~ust the weaker, marginalfunctions. This is a serious threat to thetypical tr~de and social mixture that ischaracteri~tic for the historic city centre.It is impprtant to try to maintain a

The Urban Heritage as a Cu/tura/, Socia/ and Economic Asset 43

Historic city (17th -19th century)

'.t:

Modern city (first half 2Oth century)

E Post war (re)development

fig. 4 indicational map of the historical

pluriform urban mix, even with the riseof residential prices and shop rents.

The same goes for land development.to make Kota attractive for tourists, it isnecessary to restrict and regulate privatedevelopment initiatives. Demolishingparts of the present environment infavour of offices and hotel accomodationcan kill the goose that lays the golden

eggs.

5-

Characteris~CSITo find t ompensating space for small

businesses and low-cost housing after

clearance of urban rampancy, it isadvisable to examine the possibilities

(both tecb.nical and managerial) torestore and redevelop the formerwarehouse$ in the former Kasteel areainto busin~ss-centres, with small unitsIfpr wor~hops or manufacturingf/lcilities, or for residential purposes.I

Fig. 5. New infrastructure s~ould meet with both the needs and thel spatial possibilities of the townpart

involved.

possibilities should be examined todesign a street profile that regulates andseperates bdth uses.

Also public open space within thewhole Kota area should be subject ofstudy, locating the main trafficattraction points, the main sources ofincoming traffic, the availableinfrastructure for internai circulationand outgoing traffic and the mosteffective regulation of traffic flows. lnthe streets with an obvious doublefunction, namely commercial use of thestreet besides the traffic flow, the

Inrrastructufe

As transport and service vehicles are

getting mor~ numerous and larger. the

small Kota streets have more trouble to

cope with th~ increasing traffic flow. The

quantity. of public open space remains

1'i:

Fig. 6. Planning the building scale can avoid erosion of the city image.

The Urban Heritage as a Cu/tura/. Socia/ and EconomicAsset 45

the same as in the 17th century, while thenumber of inhabitants and visitors growsevery day. This brings the urgent need toremove traffic-attracting functions, toregulate the traffic circulation, toimprove public transport and to createparking facilities. Due to the regularflooding of the Northern Jakarta area,the canais and ri vers must be deepenedand cleaned.

Building Scale

An incre~sing number of retail shops,offices and other buildings need as much

increasin size of sales and office space.The hist ric buildings cannot always

meet t is demand for floorspace.Extensio s to adjacent buildings or tothe back can injure the historic urbanfabric an image.

Fig. 7. Improvement of the environmental quality is essentiaI (or the tourist climate.

the reha~ilitaiton of poor residentialareas and the provision of opportunitiesto gain reasonable income for theinhabitan s of those areas. That means anumber f physical measures, likehousing i provement, construction ofpolders a ainst flooding, provision of tapwater, a s wer system etc. Also economicdevelopm nt can be supported. Bothrehabilitation of poor areas and supportof econo~ic development will create ademand fpr more space. Space can beprovided 1I>y land reclamation, providingopportuni ies for profitabledevelopm nt. Only by planning andstimulati 9 the economic improvementof the are, in the first place it becomesexpedient to design a conservationscheme f r the old town.

Objectives

The main objective is to introduce arelationship between economic andcultural development. Therefore thehistorical analyses has to be succeededby an understanding into (cultural)development potentials of the town as awhole and the architecture in particular.After the survey of the historic urbandevelopment has given insight in thecity's cultural identity and a diagnosticanalysis of the present situation hasgiven insight in the current urbanprocesses, it is possible to formulate ageneral vision on the city's futuredevelopment. The vehicle for thisapproach is a general master plan orstructural plan. This structural planoffers the framework for differentdevelopment plans that may beimplemented one by one without losingcoherence. The first and most importantobjective of the structural plan should be

.

i The an~lysis indicates that the historicurban strqcture in the whole Kota area ismore or Ibss flawless and therefore of

46 Economics of Conservation

special cultural value. The onlyexception is the reconstructed PasarPisang area and the area east of JI.Kemukus. The historic interest of theindividual buildings is also of importancefor the historic image throughout thewhole Kota area.

Withi~ tl!e conservation area,demoliti~ns should be restricted andbuildingpermits should be subjected to aspecial aesthetical judgement. Also theowners of buildings in the conservationarea sho~ld be given financial supportfor mainltenance and renovation.

Considering the fact that historicurban and architectural values arespread equally over the whole Kotaarea,it is advised to effectuate protectivemeasures in the whole area of Kota

uniformly.

The ~ .storiC townpart of Kota has

specific spatial and architectural

features hat are analysed and defined insuch a w y that the result can be used as

a basis ~ r an active controling policy.

In order to support the development.strategy for the Kota area (respect anduse the potential of the historic urbanimage and structure), it is advisable todesignate the townpart of Kota as aconservation area. This will create publicawareness of the present culturalhistorical values and therewith it willprovide a basis for public acceptance ofthe protective measures to be taken.

ln t e Kota area, alI levels ofinterven ion, from restoration toredevelo ment, are relevent" Togetherthey f rm the ingredients of arehabilit tion programme for the Kotaarea, ind"cating the structures of historicinterest hat need more or less urgentattentio~, based upon a combination ofthe histqric interest, the state of repairand the ~urrent use.

.

Fig. 8. Sunda Kalapa barbour bas a large tourist potential.

the mun~cipality in close collaborationwith private developers and investors.Only these plans are able to give insighton realistic possibilities of re-use of theurban ~tructure, existing (historic)

buildings and financial consequences.Only then will it be apparent whether a

(private) financing system will beadequatel or whether subsidy will haveto be ap~lied.

On their turn, these conditions mustbe confronted wlth the social and spatialcapacity of the historic urban structure,to be able to make a decision on thefuture development to pursue, startingfrom the principle of cultural continuity.

ln the case of Jakarta it means thedevelopment of economically justifiedmanagement plans for the existing built-up area, development plans designed by

47The Urban Heritage as a Cu/tura/. Socia/ and Economic Asset

Fig. 9. frequent nooding causes damage to health

agree on the course to follow. And, whatis even more important, alI partiesconcerned must be motivated tocollaborate. The people's and theinvestor's confidence in the futuredevelopment can only be gained bycreating a sound future perspective bystrategic physical planning. On thisbehalf conservationists will have toaccept that functional and economicalconservation has priority over urban andarchitectural preservation. Re-use ofbuildings (whether they are monumentsor not), should in most casees be the firststep to a more general conservation

practice.

The final result should be an usablequality schedule, focusing on theintegration of cultural (historical) valuesin a developrnent scenario required

today.

The inventory of Kota area shows thetechnical and historic quality and thecurrent use of the existing builtenviron ment. A combination of theseinventory data gives a draftrehabilitation programme. ln general inthe Kota area approximately 10,000square meters of historic building andapproximately 12,000 square meters ofneutral buildings have to be renovated.Besides, it will be necessary to improvepublic space, to clean and dredge thecanaIs and to improve the quay-walls.

Cultural Tourism

Using the historical potential tostimulate tourism, means planningmodern hotel-accomodation in or close tothe heart of the city. But it also means

providing good traffic-connections,improvement of the environmentalconditions and securing public safety.Without these basic conditions touristswill not corne. The goal "attract tourism"thus can be translated into the necessaryspatial and administrative conditionsthat have to be taken into account.

Supportive Measures

By playing an active role in the allocationof dwellings, a balanced housing marketand structure of the population can bepursued. Especially in the Kota area,with a large concentration of low-incomegroups, an active social housing-policy,in the form of a public orderon housing-p'ermits, can be a useful instrument toprevent social decline. The sam~ can besa id for business-permits.

AlI parties concerned (the population,the business-community, theauthorities) must from the beginning

Besides that, a touristic infra-

structure should be introduced, in order

to make an (economic) use of specific

48 Economics of Conservation

o

t j~kl

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..ci \ ';; \: ;.I \ "\ j \':'

;.0;0..

~,~):, " ,\::.'~':};~\!. -'fCC , --l"~~"l:I, -;:,~ ,~':(~ :c~ ,f~-'.. ;

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-,(,'o,.;"" "'S.."( .,1""""".'0".("""""",

t:=J "S""...O' ," "'STO.'C .",'U,'.., " ..OO('A.. C...0""'.

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D ..,.C...'o" " ..UT'., .'"'U,.., "' ..""'.'f ,""""".

.fig. 2 survey of the historic interest

areas and buildings. The development ofa so called tourist corridor from PulauOnrust to Istana Bogor is such astructural approach. It represents a largescale tourist programme that can give anextra economic impulse on Kota. Thiscorridor should be seen as a "necklace"with the following beads: the harbour ofSunda Kelapa and the fish harbour areboth places or special interest. And so arethe former Pasar Ikan area, with theMuseum Bahari, and Jakarta Kota withits lively streetscene and its museums.When eventually a new railway station isbuilt elsewhere in the Kota area, StasiunKota might be transformed into atransport museum (with a remaining

possibilit"j for tourists to board a train to

Bogor). Arsip National, Monas, theNational Museum and subsequently thetown and ithe palace of Bogor completethe "necklace".

: Throug~ the above described

limplemen,~ation of conservation socialrenewal ~nd economic schemes in aIhistoric toFn as Jakarta, one can achievean impr~vement of the living and

working : conditions of the local

inhabitan~s, without losing the town's

identity. fiurthermore a creative solutionis found fdr infrastructural problems and

opportunities are created for culturaltourism a$ a new economic source.

1; :j~lC"("\ 1\-",,'..\, ., ~ .',' \

, ,"-",\, \:,'

-\'\ " :~--

\~;::::.'"-::ït

The Urban Heritage as a Cultural. Social and EconomicAsset 49

Fig. 11 restor~tion of hiS:OriC buildings and structures should ~ave a functional basis.

~t-;

sunda

ke(apa ~~.

.

~ANC L

KOTA

stasi n

.

arslp

nasional

museum

nasional

manas

..J

3kmFig. 12. the tourist infrastructure between Pulau °*rust and B~gor.

museum:

bohar i

.keromik

wojong

50 Economics of Conservation

Fig. 12. Bogor palace, a future art gallery?

.