Integrated Development Will Allow to Plan Ecosystem for Industrial Zones

09 July 2020

Industrial areas have been redeveloped for quite a long time in Moscow. But what are the advantages and differences of the integrated development program? This is what the head of the Moscow Department of Investment and Industrial Policy Alexander Prokhorov told in an interview with TASS.

Moscow industrial zones have been constructed and redeveloped for quite a long time. What are the differences between regular development and the new program of integrated area development?

- The IAD provides an opportunity to comprehensively develop and build up those areas where proprietors are either not ready or do not want to do so. The IAD allows us to immediately plan the ecosystem of a large area. The social infrastructure should not be missed during the construction of residential housing ans has to be build up ahead of schedule. Modern hi-tech production facilities with new jobs should take place next to shops and cafes.

At the same time, the IAD mechanism legally fixes the rights and obligations of the parties - the city and the investor. The contract clearly states the terms of execution and responsibility for their violation. 

You have recently conducted an inventory of all industrial zones in Moscow. What's its outcome?

- As for now, we have already surveyed 100% of the industrial areas in Moscow - it is about 14,800 hectares or more than 13% of the total "Old" Moscow area.

5,400 hectares of it are areas potentially suitable for urban development, including IAD. The urban planning potential of IAD projects may amount to about 37 m square meters.

Our calculations show, the AID projects can give the city 500,000+ jobs and almost RUR 3 tn as budget revenues through taxes and fees for changing the permitted type of land use, while the total project investments will amount to about RUR 7 tn.

It was reported that negotiations would be held with the owner before making a decision on the redevelopment of the industrial zone so that he could start restoring the area by himself. How are we doing in this direction? How active are the owners of abandoned industrial zones?

 - Our department and the Moscow Industrial Development Agency (MIDA) regularly hold working meetings with area proprietors. Initially, no one was ready for changes and development of territories, all proprietors reacted on IAD negatively, just not fully understanding what it is.

Therefore, the first meeting is usually an introductory, specialists explain the IAD mechanism and its advantages and answer questions.

The second meeting is most often one month after the first one. The proprietors usually come here with exact intentions, many of them have time to negotiate with their neighbors. We use the results of the second meeting to draw up an action plan - a road map - for signing the IAD agreement and implementing the project.

Six IAD projects are now in the active phase of work, their proprietors have agreed among themselves and are developing the area planning documentation.

What is the interest of investors to develop industrial zones? What facilities are mostly demanded and attractive for investors? How do you attract investors for redevelopment of industrial zones?

- Investors are very actively watching the redevelopment of Moscow industrial zones and want to implement their projects in these areas. There's a demand.

First of all, of course, projects related to residential, social and business development. However, there is also an interest to construct industrial facilities, for example, in former large factories with good transport accessibility and available logistics and - often - with rail connection. On-site utilities and city support measures for these projects do also raise the interest.

 The launch of the IAD program was announced a few years ago. How easy is it to implement the program? What are the main difficulties you can point out?

- The implementation of any project within the existing development is not an easy task. IAD projects are also complicated due the fact that the areas may have from one to several dozen proprietors. Nevertheless, the city has done an enormous preparatory work within several years. All production areas have been analyzed for actual use and development opportunities.

We plan to focus all our efforts on projects from the second half of this year, as we are completing the program of preparing IAD proposals and are coming over to investors, industrial developers and auctions.

 

Source: tass.ru

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