Master Class from Kyle Patching
27.04.11 Kyle Patching, the Business Director of Maris | Part of the CBRE Affiliate Network gave a master class in Mixed use development and the redevelopment of former or existing underutilized industrial zones.
The major theme of the event was Mixed-use conception, and the following questions were answered:
Mixed-use conception in Saint-Petersburg. According to Mr. Patching’s opinion, reconstruction of existing industrial buildings will improve the living conditions of Saint-Petersburg’s citizens and will help to save the cultural heritage of the city. “I would like to pay special attention on Saint-Petersburg industrial zones. There are 48 industrial zones in Saint Petersburg. There is about 10,500 sq.m of industrial areas, also 30 km of embankments are occupied by the old plants and other industrial enterprises. In all of these industrial zones there are a lot of non rentable and non profitable projects which could potentially be very profitable for the city, developers and highly useful to the citizens if they would be reconstructed into projects with multiple functions. With proper reconstruction the following problems can be solved: better transport infrastructure, social programs concerning non market residential units, developing entire new districts, improving the ecological situation of the city and adding new work places and jobs.”
What is a properly balanced mixed-use project? This topic was illustrated by several Canadian projects. Many mixed-use projects are successfully realized all over the world.Mr. Patching in his speech demonstrated the experience of international and local developers in Canada.
Hudson project, Victoria, Canada. Loft apartments in the downtown core of the city are combined with underground parking, hotel and retail functions – this is a reconstruction of the Hudson’s Bay Company department store that was built in 1935.
The Woodwards department store that was built in the 1940’es used to be a popular store among the residents of the area, but later it became unprofitable as the surrounding district suffered poverty and urban blight. The Vancouver city administration solved the problem by selling the property to the developers at a discounted price in exchange for commitments on social housing and educational facilities. In 2009, after reconstruction the district turned into a small city within a city, where community organizations, educational centers and social housing coexist successfully with penthouse apartments, offices, retail, spa center, restaurants, gym, school of contemporary arts, etc. All of these diverse functions are integrated into this cutting edge mixed-use project. We should pay special attention on the green technologies that were used in the project – a priority and accent were given to ecologically friendly local materials. As a result Woodward’s became the one of the most profitable and viable projects not only for developers but also for the city. It is one of the most beautiful mixed-use projects in Canada and has become a textbook example for developers seeking viable and profitable solutions to difficult conceptions.
Round House Redevelopment, Victoria, British Columbia, Canada seemed to be another difficult and unprofitable post industrial project at the outset. After reconstruction it became a refitted and revitalized zone for living, entertainment and rest. In the Round House Project you can find cafés, restaurants, artist's studios, brew pubs, farmer’s markets, offices, hotel and also residential buildings.
Granvile Island is another highly successful mixed-use project in Vancouver, Canada that after redevelopment turned into a shopping, entertainment and educational center.
All of these projects prove one more time that proper development of mixed-use projects is profitable and viable not only for developers, but for the city as well.
The potential risks in developing a mixed-use project. The functions are balanced improperly, conceptual misunderstandings between developers and city administration, poor transport infrastructure, the “copy/pasting” of existing projects.
What is required for the proper mixed-use project? Dialog with developers and city administration, some legal changes to the building code and potentially the General City Plan, quick and simplified procedure to receive construction permission, a strategic attitude to the city planning from the city administration, proper balance of functions and the Russification and localization of international experience.
“Properly balanced mixed-use conception is profitable, viable and must have a sustainable conception” in the end. Mixed-use can be new building projects as well as reconstruction. It is a more unusual and complicated project compared to ordinary multifunctional centers. “Our city has enormous potential and reserves to develop industrial zones into mixed-use projects. Mixed-use development will improve the city and allow us not only to build up new areas, but also to use existing ones. Work on such projects requires a professional approach and deep analysis of the needs of the citizens and stakeholders, using world class experience”.
The special guest – Olesya Ruslyakova, a Coordinator of Public Private Partnership projects for St. Petersburg, added to Mr. Patching’s report information regarding existing federal and local laws of the building committee, restrictions in development of such projects which should adhere to the rules and laws and become profitable to the city and its citizens.
Supplemental information:
Maris | Part of the CBRE Affiliate Network
Maris | Part of the CBRE Affiliate Network is one of the leading and fastest growing real estates companies in St Petersburg. Maris Properties was found in 2004 year and in 2006 year - company has announced an affiliation agreement with the international real estate market leader CBRE. With over 24,000 employees, CBRE serves real estate owners, investors and occupiers through more than 300 offices worldwide. Our client list already includes such companies as: Siemens, Sun Microsystems, American Express, Franke, Vimpelkom (BeeLine GSM), Teks, Avaya, Bristol-Myers Squibb, Finansbank, JTI and others. Maris | Part of the CBRE Affiliate Network is a active member of American Chamber of Commerce in Russia.