CityLab: A Challenge to Copenhagen’s Model of Development

CityLab skriver i dag (25/9-17) om den økonomiske model bag By & Havn, byudvikling i København og giver et indblik i hvordan bl.a. metroen financieres for engelsksprogede læsere.

“The development model dates back to the early 1990s, and has done much to transform the city. Faced with near bankruptcy by 1993, the city decided to look for ways other than tax increases to get itself out of its slump. To this end, it transferred ownership of large tracts of its (only recently defunct) harbor quaysides to a state-owned company called By & Havn (“City and Harbor”). […]

The company then plowed the extra money it received back into state coffers or new development. To build a new metro line out to the airport, the company calculated that, once the line was open, the value of undeveloped land along its flanks would appreciate hugely, enabling them to sell it and recoup some costs.

This all seems prudent enough, but it has come with some problems. In trying to maximise revenue from the sold-off land, the city has done little to make local housing more affordable—not least because most apartments built since 1991 are free from rent control, which until then was mandatory.”

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