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The Negotiation Process Regenerated: An evaluation of the relation between rigidity and effectiveness of the “de Kosten In Beeld, de Kosten Verdeeld” methodology in Regeneration Projects

Reuser, Roel (2009) The Negotiation Process Regenerated: An evaluation of the relation between rigidity and effectiveness of the “de Kosten In Beeld, de Kosten Verdeeld” methodology in Regeneration Projects.

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Abstract:MANAGEMENT SUMMARY Introduction - Spatial planning in the Netherlands is focussing more and more on the regeneration of inner-city neighbourhoods. Especially the neighbourhoods rapidly built after the second world war, to cope with the huge deficit on houses, experience a reduction in liveability. Politicians and scholars agree that to improve the neighbourhoods, the redevelopment cannot be limited to some marginal physical measures. To effectively improve the neighbourhood a integral regeneration is necessary. The municipality is responsible for carrying out the national policy on urban renewal. In these neighbourhoods the social housing associations possesses a large part of the real estate. They experience a increased threat of vacancy in their low quality property. Hence, the municipality and the social housing associations both are interested in the regeneration of the neighbourhood. To regenerate a neighbourhood they are mutual dependent, so they need to cooperate. Financial arrangements need to be established in order to cooperate, but problems occur in the negotiation process. A joint effort of authoritative parties resulted in a methodology to establish unambiguous balanced division of costs and income, the “Kosten In Beeld, de Kosten Verdeeld“ -methodology (KIBKV). Although it offers the desired transparency it often does not have the desired results; still many problems occur during the negotiation processes. Recommendations - The disappointing effect of the KIBKV methodology is a result of its rigidity. The rigidity is caused by the choices that the methodology prescribes to make the calculations more transparent. Hence, to enhance the effectiveness of the KIBKV methodology, the rigidity needs to be decreased, without affecting the transparency. This can be done by making the distribution rule more flexible. The distribution rule prescribe how a deficit of funds for the regeneration should be divided among the participants. The percentages prescribed by the distribution rule should be open for negotiation to enhance flexibility. Other way to create more flexibility is by discounting some project specific issues in the valuation of property, no adjustments to the method are needed for this measure. Research – A quasi-experimental research design is used to come to these findings. After a thorough analysis of the problem and its context an experiment is designed to test the proposed adjustments to the KIBKV method. In total three groups of adjustments were designed, of which one is recommended for implementation, as described above. The experiment consisted of two negotiation simulations between a social housing association and a municipality over a fictive project. In one simulation the participants were assigned to follow the principles of the original KIBKV method (control group), in the other simulation the adjusted KIBKV method (treatment) was followed. Consequences – The KIBKV method already offered much transparency, with the improved flexibility the method can be very useful in negotiation processes of regeneration projects. The method is a “preferred method”, so it is allowed to adapt the method if necessary. When the adjusted method is used, municipality and social housing association are more likely to successfully establish financial arrangements. It would therefore be wise to reanimate the method by applying the adjusted method in regeneration projects. The method and especially the adjusted method also show potential for broader application. It would be wise to examine how the method can be extended to two potential fields of interest. First extension is the involvement of other actors like real estate developers and health organizations, second extension is the application on other type of area developments, like city expansion projects.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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