Incentive Schemes for Inner-City Renewal in

Abstract

Public- and private-sector developers seek appropriate methods for initiating property development in the high-risk inner-city of Johannesburg, and are expected to respond to incentive mechanisms for investment if implemented by national and local government. This research sets out to identify the most popular international methods of encouraging urban renewal which could be used to provide incentives to developers, businesses and individuals to return to the inner-city of Johannesburg. A case study technique is used to explore the potential uses of international inner-city renewal techniques in the Johannesburg inner-city. The study begins with a literature review of mechanisms used worldwide, looks into recent developments in the renewal of Johannesburg via interviews and reviews of current documentation, and then seeks to adapt the international methods to the local situation. From the literature review, the consideration of contemporary documentation and interviews, eight methods considered best suited to renewal in Johannesburg are selected. These methods are further scrutinised for benefits and drawbacks if used in Johannesburg. The study concludes by development of a basic flowchart outlining how appropriate methods for renewal might be selected by stakeholders. Conclusions are drawn regarding the most appropriate practices to follow in revitalising the city, and the report ends by considering potential future areas of study and the future of renewal in Johannesburg’s inner-city. Key findings include the significance of obstacles to Johannesburg’s renewal caused by urban sprawl, as well as identification of numerous options for bolstering business in the inner-city, such as low-cost, municipality-backed loans, insurances and other ways of managing development risk, and tax-relief targeted at businesses willing to relocate to or invest in the inner-city. Drawbacks to current methods of renewal in the inner-city included the complexity of Public Finance Initiatives (PFI) already used in Johannesburg, when compared with the simple and successful Urban Development Zone (UDZ) already in place in the Johannesburg inner-city. The report concludes with a basic flow chart indicating how appropriate mechanisms for renewal in Johannesburg might be selected. Recommendations to stakeholders in the renewal field are made, and suggestions for further research are given