National Treasury Urban Network Strategy

NATIONAL TREASURY
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OUR OBJECTIVES AND AGENDA FOR TODAY
2
CONTEXT OF THE NEIGHBOURHOOD
DEVELOPMENT PROGRAMME
The NDP was established in 2006 and is responsible for managing the
Neighbourhood Development Partnership Grant. Grant Purpose:
From the start of the programme until the end of 2012/13 the NDP has:
Approved  municipal business plans to a value of R4.0bn
Approved  project plans to the value of R 3.9 bn.
Completed 129 municipal NDP projects
Disbursed a total of R615m to service providers and municipalities,
94% of its budget.
To support and facilitate the planning and development of neighbourhood
development programmes and projects that provide catalytic infrastructure  to
leverage 3rd party public and private sector development towards improving the
quality of life of residents in targeted underserved neighbourhoods (townships
generally) 
Division of Revenue Bill, 2013 (Bill No. 02 of 2013)
NDPG FUNDED URBAN HUBS IN SA CITIES:
BRIDGE CITY, ETHEKWINI
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NDPG: LESSONS LEARNT IN TOWNSHIP
REGENERATION
Multiple spatially disparate “ad-hoc” township projects in the
absence of an integrated and co-ordinated city-wide urban
regeneration strategy has very low impact
All spheres of government need to be involved.
Project prioritisation not to be informed by vested interests
Private fixed investment is dependant on the above
Limited municipal capacity to plan, assemble and align
multiple funding sources in single large-scale mixed use
development
Land issues dictate project progress and viability
Opportunities exist to develop and diversify township
economies by leveraging mixed-use transit orientated
development
6
FOCUS IS ON CITIES AS THEY ARE THE CENTRES
OF SOCIO-ECONOMIC ACTIVITY
A TARGETED INVESTMENT PROGRAMME IN
SA’S 18 LARGER URBAN CENTRES
7
 
 
 
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Poverty and unemployment, especially among youth
Sprawling, monotonous, dormitory landscapes, with long
travel times for poor to access amenities, services &
opportunities
Compounded by climate change and weak governance,
and may result in rising social conflict (service delivery
protests)
Accelerating economic growth required that we address:
future supply side bottlenecks from unavailability of public
infrastructure (new, expanded and rehabilitated assets)
continued low 
levels of private sector fixed investment in the built
environment
A MORE STRATEGIC APPROACH IS CRITICAL
TO LEVERAGE REAL CHANGE
Available Public 
Resources
Need in
marginalised areas
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Private fixed
investment
… and strategy requires:
Consensus on
concepts
A programmatic
approach
Strong partnerships
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WHY FOCUS ON URBAN SPATIAL FORM?
Severe inequality is clearly represented in the spatial form of
all our cities
Exclusionary (spatial patterns of access to services and opportunity)
Inefficient (growing fiscal and economic costs in supporting the current
spatial form and design)
Unsustainable (severe environmental and social risks)
Public policy unwittingly reinforced these divides, and set
them in concrete
A lack of adequate forward planning to deal with continuing pulling
power of cities & environmental factors affecting cities
A renewed focus on the quality of urban and economic growth is
required
10
10
THE NATIONAL DEVELOPMENT PLAN URGES
COORDINATED ACTION
Tackle spatial development patterns directly
Combine the use of multiple instruments:
Strengthen strategic spatial planning
Coordinate the use of Planning, regulatory and investment tools
and strategies
Leverage public transport, infrastructure, land and housing
investments
Use a spatial focus to target more public resources
11
11
THE URBAN NETWORKS STRATEGY
An integrated hierarchy of land use clustering & connectivity
THE NEW APPROACH WILL ENABLE GROWTH
& DEVELOPMENT
Transit-orientated
Partnership-based
Targeted (precinct) investment
Aimed at strategic spatial transformation
Optimise access to social & economic opportunities,
especially for the poor
Minimise transaction costs to participate in the urban
economy
Replicable model
13
13
I.
Primary Network
II.
Secondary Network
14
14
THE TWO SPATIAL PRINCIPLES UNDERPIN
THE 
URBAN NETWORKS STRATEGY
The primary network is at city-wide scale and consists of
anchor nodes, i.e. the CBD and a number of Urban Hubs, as
well as Activity Corridors between these anchor nodes .
Secondary Nodes are smaller nodes within township areas
connected to the Urban Hub and serving as “neighbourhood”
or lower order nodes.
 
 . . . IDENTIFY & STRENGTHEN HUBS . . .
15
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URBAN NETWORKS STRATEGY
16
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. . . CONNECT . . . PRIMARY NETWORK
. . . CONNECT . . . SECONDARY NETWORK
17
17
 
Strong urban network with a hierarchy of
well connected nodes
Efficient flows of people, goods &
information
Targeted public infrastructure that
catalyses
 ubiquitous distribution of public
& private sector investment
Good access to jobs & amenities
The urban networks strategy is aimed at
integrated growth & development
19
19
INVESTMENT CASE STUDY: MAMELODI
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IDENTIFICATION & PLANNING WILL UNLOCK A
PIPELINE OF 
PRIORITISED
 CATALYTIC PROJECTS…
… THAT ARE CRITICAL TO THE
STRENGTHENING OF THE PRIMARY NETWORK
 
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FROM STRATEGY TO ACTION …
23
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NDPG FUNDED URBAN HUBS IN SA CITIES:
MITCHELLS PLAIN
VIBRANT URBAN HUBS ARE KEY ENTRY
POINTS
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Function:
“Town centre” for township/s
Gateway to the rest of the wider urban area
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Leveraging of investment:
Retail
Recreation, hospitality & tourism
Offices, banking
Community facilities & govt services
Higher density housing
Within an urban design framework that promotes a vibrant sense of place
in which to live, work and play
25
25
26
26
Diversity
Investment
No & Type of tenants (Traders, SME’s, National Chains) 
Land Use Mix
Private/Public Split
INDIVIDUAL URBAN HUB STRATEGY TO BE
DETERMINED VIA INVESTMENT INDEX
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Low
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CBD & HUBS REQUIRE A CLEAR PRECINCT MANAGEMENT
STRATEGY TO ENSURE FULL LIFE CYCLE OPTIMISATION
27
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Economic Development
Place marketing
Lifestyle event management
Risk management
Safety
o
Security presence
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Active edges rather than dead zones - e.g. walls
& vacant stands
Clean and well maintained precinct public spaces
27
27
… AND AN URBAN DESIGN TOOLKIT WILL ASSIST
CITIES TO OPTIMISE VIBRANCY & INVESTMENT
28
28
Identification of spatial structuring elements:
Rail & road infrastructure
Modal facilities
Pedestrian network
Public spaces
Planning & design principles for:
Optimal clustering
Making of a qualitative public realm
Investment phasing towards private sector leveraging
29
29
CONVERGENCE OF PEOPLE IN HUBS TO
ATTRACT PRIVATE SECTOR INVESTMENT
MIG
PTIS
NDPG
UDZ
SHRZ
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D
Developed
Area
Underserved
Townships
Underserved
Townships
Underserved
Townships
THE PIPELINE IS AIMED TOWARDS AN
INTEGRATED FISCAL PACKAGE
TIME-FRAMES: PLANNING
31
31
COUNCIL
RESOLUTION
URBAN NETWORK
ELEMENTS
IDENTIFIED
MEMORANDUM
OF
AGREEMENT
MUNICIPAL
WORK PLAN
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KEY ACTIONS AND TIMELINES
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The National Treasury Urban Network Strategy focuses on strengthening strategic alignment between Emfuleni Local Municipality and the National Treasury. It emphasizes integrated, equitable spatial and economic development through the Urban Networks Strategy, catalytic interventions, and strategic partnerships. The Neighbourhood Development Programme plays a key role in managing grants for neighborhood development projects, with a focus on improving residents' quality of life. Lessons learned in township regeneration stress the importance of integrated strategies and government involvement. The emphasis is on cities as hubs of socio-economic activity.

  • Urban development
  • Strategic partnerships
  • Neighbourhood development
  • Township regeneration
  • Economic growth

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  1. NATIONAL TREASURY URBAN NETWORK STRATEGY

  2. OUR OBJECTIVES AND AGENDA FOR TODAY Strengthen strategic and practical alignment between Emfuleni Local Municipality and NT: NDGP on the approach to pursuing more integrated, equitable spatial and economic development Focus on spatial urban form and spatial targeting using the Urban Networks Strategy Accelerating catalytic interventions in Emfuleni Local Municipality Objective Strategic partnership based alignment of Emfuleni Local Municipality and NT and implementation of the Urban Networks Strategy This requires clarity on the next steps with: Strategic spatial planning Pipeline of catalytic interventions Desired outcome 2 2

  3. CONTEXT OF THE NEIGHBOURHOOD DEVELOPMENT PROGRAMME The NDP was established in 2006 and is responsible for managing the Neighbourhood Development Partnership Grant. Grant Purpose: To support and facilitate the planning and development of neighbourhood development programmes and projects that provide catalytic infrastructure to leverage 3rd party public and private sector development towards improving the quality of life of residents in targeted underserved neighbourhoods (townships generally) Division of Revenue Bill, 2013 (Bill No. 02 of 2013) From the start of the programme until the end of 2012/13 the NDP has: Approved municipal business plans to a value of R4.0bn Approved project plans to the value of R 3.9 bn. Completed 129 municipal NDP projects Disbursed a total of R615m to service providers and municipalities, 94% of its budget.

  4. NDPG FUNDED URBAN HUBS IN SA CITIES: BRIDGE CITY, ETHEKWINI Magistrates Court Precinct Plan Bridge City Shopping complex Underground Rail Station (PRASA)

  5. NDPG: LESSONS LEARNT IN TOWNSHIP REGENERATION Multiple spatially disparate ad-hoc township projects in the absence of an integrated and co-ordinated city-wide urban regeneration strategy has very low impact All spheres of government need to be involved. Project prioritisation not to be informed by vested interests Private fixed investment is dependant on the above Limited municipal capacity to plan, assemble and align multiple funding sources in single large-scale mixed use development Land issues dictate project progress and viability Opportunities exist to develop and diversify township economies by leveraging mixed-use transit orientated development 5 5

  6. FOCUS IS ON CITIES AS THEY ARE THE CENTRES OF SOCIO-ECONOMIC ACTIVITY 6 6

  7. A TARGETED INVESTMENT PROGRAMME IN SA S 18 LARGER URBAN CENTRES 7 7

  8. URBAN GROWTH MAY DEEPEN INEQUALITY AND EXCLUSION IN OUR CITIES Poverty and unemployment, especially among youth Sprawling, monotonous, dormitory landscapes, with long travel times for poor to access amenities, services & opportunities Compounded by climate change and weak governance, and may result in rising social conflict (service delivery protests) Accelerating economic growth required that we address: future supply side bottlenecks from unavailability of public infrastructure (new, expanded and rehabilitated assets) continued low levels of private sector fixed investment in the built environment 8 8

  9. A MORE STRATEGIC APPROACH IS CRITICAL TO LEVERAGE REAL CHANGE and strategy requires: Need in Consensus on concepts A programmatic approach Strong partnerships marginalised areas GAP Available Public Resources Private fixed investment DIFFERENTIAL

  10. WHY FOCUS ON URBAN SPATIAL FORM? Severe inequality is clearly represented in the spatial form of all our cities Exclusionary (spatial patterns of access to services and opportunity) Inefficient (growing fiscal and economic costs in supporting the current spatial form and design) Unsustainable (severe environmental and social risks) Public policy unwittingly reinforced these divides, and set them in concrete A lack of adequate forward planning to deal with continuing pulling power of cities & environmental factors affecting cities A renewed focus on the quality of urban and economic growth is required 10 10

  11. THE NATIONAL DEVELOPMENT PLAN URGES COORDINATED ACTION The Commission provides a proposed schema for spatial targeting that indicates where investment should be focused, and we identify elements of the existing broad consensus for transforming towns and cities National Development Plan, 2012 Tackle spatial development patterns directly Combine the use of multiple instruments: Strengthen strategic spatial planning Coordinate the use of Planning, regulatory and investment tools and strategies Leverage public transport, infrastructure, land and housing investments Use a spatial focus to target more public resources 11 11

  12. THE URBAN NETWORKS STRATEGY An integrated hierarchy of land use clustering & connectivity

  13. THE NEW APPROACH WILL ENABLE GROWTH & DEVELOPMENT Transit-orientated Partnership-based Targeted (precinct) investment Aimed at strategic spatial transformation Optimise access to social & economic opportunities, especially for the poor Minimise transaction costs to participate in the urban economy Replicable model 13 13

  14. THE TWO SPATIAL PRINCIPLES UNDERPIN THE URBAN NETWORKS STRATEGY I. Primary Network The primary network is at city-wide scale and consists of anchor nodes, i.e. the CBD and a number of Urban Hubs, as well as Activity Corridors between these anchor nodes . II. Secondary Network Secondary Nodes are smaller nodes within township areas connected to the Urban Hub and serving as neighbourhood or lower order nodes. 14 14

  15. . . . IDENTIFY & STRENGTHEN HUBS . . . URBAN NETWORKS STRATEGY 15 15

  16. . . . CONNECT . . . PRIMARY NETWORK 16 16

  17. . . . CONNECT . . . SECONDARY NETWORK 17 17

  18. The urban networks strategy is aimed at integrated growth & development Strong urban network with a hierarchy of well connected nodes Efficient flows of people, goods & information Targeted public infrastructure that catalyses ubiquitous distribution of public & private sector investment Good access to jobs & amenities

  19. INVESTMENT CASE STUDY: MAMELODI Numerous ad-hoc non integrated or aligned projects. Little co-ordination of public funds 19 19

  20. INVESTMENT CASE STUDY: MAMELODI R138m Urban Hub and secondary nodes, spatial logic, spatial targeting results in integrated or aligned projects. Better leverage through the co-ordination of Public funds 20 20

  21. IDENTIFICATION & PLANNING WILL UNLOCK A PIPELINE OF PRIORITISED CATALYTIC PROJECTS Urban Network Network Elements Intervention Investment Phasing Regeneration and management Mixed-use development and management CBD Urban Hubs Spatial Development Objectives Network Connectivity Optimisation Primary Network Primary Transport Link Activity Corridor Secondary Transport Link Develop/Upgrade and management Infill & Densification Secondary Network Develop/Upgrade 21 21

  22. THAT ARE CRITICAL TO THE STRENGTHENING OF THE PRIMARY NETWORK Network Topology: CBD Urban Hubs & Secondary Transport Links Primary Public Transport Links Activity Corridors CBD

  23. FROM STRATEGY TO ACTION Strategic spatial planning Urban network identification & planning Intervention planning Precinct planning Identification of catalytic projects Project Planning Detailed design Pipeline Implementation management Life-cycle Management Performance monitoring and evaluation Precinct management Investment facilitation 23 23

  24. NDPG FUNDED URBAN HUBS IN SA CITIES: MITCHELLS PLAIN 24 24

  25. VIBRANT URBAN HUBS ARE KEY ENTRY POINTS High density, mixed use precinct that contains a diverse variety of land uses, services and activities Function: Town centre for township/s Gateway to the rest of the wider urban area Efficient multi-modal public transport system & a precinct network of public spaces and walkways Leveraging of investment: Retail Recreation, hospitality & tourism Offices, banking Community facilities & govt services Higher density housing Within an urban design framework that promotes a vibrant sense of place in which to live, work and play 25 25

  26. INDIVIDUAL URBAN HUB STRATEGY TO BE DETERMINED VIA INVESTMENT INDEX High Investment 3. On a road to nowhere High Low Diversity No & Type of tenants (Traders, SME s, National Chains) Land Use Mix Private/Public Split 26 26

  27. CBD & HUBS REQUIRE A CLEAR PRECINCT MANAGEMENT STRATEGY TO ENSURE FULL LIFE CYCLE OPTIMISATION Objective: An inclusive, vibrant, safe, investment friendly hub Precinct Management Community Municipality Public Sector Investors Private Sector Investors Developers Traders Tenants Property Owners Economic Development Place marketing Lifestyle event management Risk management Safety o Security presence o Active edges rather than dead zones - e.g. walls & vacant stands Clean and well maintained precinct public spaces 27 27 27 27

  28. AND AN URBAN DESIGN TOOLKIT WILL ASSIST CITIES TO OPTIMISE VIBRANCY & INVESTMENT Identification of spatial structuring elements: Rail & road infrastructure Modal facilities Pedestrian network Public spaces Planning & design principles for: Optimal clustering Making of a qualitative public realm Investment phasing towards private sector leveraging 28 28

  29. CONVERGENCE OF PEOPLE IN HUBS TO ATTRACT PRIVATE SECTOR INVESTMENT 29 29

  30. THE PIPELINE IS AIMED TOWARDS AN INTEGRATED FISCAL PACKAGE Underserved Townships MIG Developed Area SHRZ CBD PTIS NDPG Underserved Townships Underserved Townships UDZ

  31. TIME-FRAMES: PLANNING ENGAGE COMPILE WORK PLAN PREPARE PROGRAMME PLAN PREPARE AREA BASED PLAN Compile Municipal Work Plan Compile Service Provider Work Plan Procure Engage 1 Engage 2 Service Provider Date? Date Date Date Date Date In-progress 3 WEEKS 4 WEEKS 4 MONTHS 2 WEEKS URBAN NETWORK ELEMENTS IDENTIFIED MUNICIPAL WORK PLAN 3 MONTHS 6 MONTHS COUNCIL RESOLUTION MEMORANDUM OF AGREEMENT

  32. KEY ACTIONS AND TIMELINES Stage I: (DATE) Engagement Two (Technical Meeting) Stage II: (DATE) Council (Mayoral Committee) resolution approving participation in the NDPG Institutional / Governance arrangements Confirmed NDPG conditions (Memorandum of Agreement) Urban Network Identification Service Provider procurement & capacity support requirements Stage III: (DATE) Urban Network Plan completed Stage IV: (DATE) Precinct Plan completed Catalytic NDPG projects identified with timeframes 32 32

  33. Way forward

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