LUDA project - Improving the quality of live in large urban distressed areas
button button rehabilitation programme

OSTRAVA

Identified Level of the Rehabilitation Strategy Development

(1) the remediation process of the soil was finished, the completion of the remediation of the groundwater will be finished by the end of 2005
(2) there is a prepared project for development of the part of thesite

Spatial and Temporal Scale:
Site name: Location: Size (hectares): Former use: Opportunity Date:
Karolína Ostrava City Center 60 Steel, mining and chemical industries 1993
Hrušov Periphery of Ostrava City 45.5 Residential area damage by floods 1997 – flood event
2000 – City takes action

Issues and Targets:
Most of Ostrava properties that were a part of the subject study were formely owned by the National Government, with the sole exception being one property.
Site name: Former Owner: Current Owner: Date of New Owner Takeover:
Karolína National government 4 major owner (private and public) After 1989
Hrušov Several private sector companies Several private sector companies but City is currently trying to purchase Not applicable
Environmental contamination of the LUDA respect to responsibility (i.e. originator of the contamination) as well as typ and level of contamination and the impacted media. In direct relationship to ownership and where information is available and some contamination exists, the national government and private owners are responsible. In all cases where contamination exists, soil and grounwater are impacted. Some surface water and building contamination also exists. Contamination levels range from emergency levels (defined as eminent human health and/or ecological hazard), to high, medium and low. Contaminants include those typical to the industries of former operation: heavy metals, benzene, toluene and xylene (BTX), total petroleum hydrocarbons (TPH), volatile organic compounds (VOC´s), polyaromatics and phenols as well as others more typical for power regeneration.
Site name: Responsibility: Media: Type: Level:
Karolína National government Soil, groundwater BTX, TPH, polyaromatics, phenols Hogh, some emergency levels
Hrušov Several private sector owners Soil, groundwater Heavy metals, polyaromatics, TPH Low

Management and Partnership description:
Ostrava, like the other V4 cities, does not have a LUDA program on the local level, nor a scheme by which the properties are identified for state supported cleanup funds as well. In spite of this lact, Ostrava has started to solve problem in connection with LUDA trying to use all available tools on the national level.
Ostrava does not have a formal position with legal authority as a LUDA coordinator, but there is some effort to perform some coordination activities by the City Ostrava, through Department of Economic Development. The brownfields issue is a priority of the City and the City is the initiator and manager of several ongoing projects.

Key Stakeholders Analysis:
There are many stakeholders, or parties with an interest, monetary or other , in LUDA development and it has been noted that stakeholder participation is key to development. The stakeholder groups to be considered in the subject research include the city , the national government, the owner, developers and investors, financial institutions, insurance cmpanies, academia and community. An important consideration, as well, is whether or not there is a champion for the project.
Options for participation include:
1. Initiation of the project
2. Management of the project
3. Coordination of the project
4. Property ownership
5. Development and/or investment
6. Provision of funds for studies/development documents
7. Provision of funds for environmental investigations
8. Provision of funds for environmental remediation
9. Provision of funds for infrastructure improvements
10. Assistance in attracting developers and investors
11. Provision of incentives for developers and investors
12. Investment in new development
13. Introduction/Enforcement of constraints
14. Provision of guarantees
15. Transfer of experiences and expertise
16. Provision of education and publishing of project
17. General project support
18. Community engagement

Participation and Governance Improvement:
Site name: Applicable Laws and Other Measures What works? What does not work? Primary Obstacles Steps for Improvement
Karolína A Czech Republic Government Resolution of January 10, 2001, No.51:”On principles of Environmental Commitmenst Settlements Aristing Prior to Privatization” City of Ostrava, National Property Fund Lack of Investors because of termination of decontamination (investors do not want to wait) High status of contamination = high costs Create a national LUDA legislative framework in conjuction with local initiative, create legal framework for public-private partnership
Hrušov Not applicable City of Ostrava The process has just started Purchase of land, flooded area Create a national LUDA legislative framework in conjuction with local initiative, create legal framework for public-private partnership


Financing:
The questionnaire solicited input on cost, financing and funding in order to better understand the economics of brownfield development. Information was requested on items such as site investigation costs, decontaminalion costs, cost of land purchase and site preparation, infrastructure improvement costs, cost of remediation relative to the value of the properly, development costs as compared to an equivalent greenfield, and the value of a remediated brownfield relative to an equivalent greenfield. The lack of good, quantitative economic data (ie. actual monetary amounts) in the evalualion of LUDA development is a recurring problem. Comparisons on the bases of economic data are also difficult due to the number of variables that define each properties and its surroundings. A very large sample set would be required to make any conclusions of stalistical significance.
Non-monetary information was also requested; specifically, what was the source of the funds (public, private and/or European Union, where applicable), what other incentives were employed, and were development partnerships formed. The answers are summarized in Table.
Site name: Public funds: Private Funds: EU funds: Incentives: Public/Private Partnership:
Karolína National Property Fund (NPF) monies for remediation efforts No private funds for the present – potential No EU funds for the present – potential NPF money for remediation Potentially a joint venture – shared risk
Hrušov Purchase of the land (City of Ostrava) Not yet – the process has just started Potential - the process has just started The process has just started The process has just started

Bibliography:

  • Ostrava – Fact sheets, Updated: April, 2004, City of Ostrava – The Magistrate, department of Economic Development
  • CD – Ostrava – Economic Development

Connected Web sites:
http://www.mmo.cz
http://www.ostrava-city.cz


  
EVK4-CT2002-00081