Redevelopment potential of brownfields: A-B-C classification and its practical application

Ekonomie 34 2014, XVII, 2 DOI: 10.15240/ ul/001/2014-2-003 In oduc ion The issue o b own ields and hei ede elopmen aises a wide public deba e in many coun ies wi hin he Eu opean Union. Exis ence o his phenomenon, which is bo h linked o long his o ical indus ial adi ions [16] in his egion and ecen ends in he socie y like deindus iali- za ion p ocesses, signi ican ly in luenced he cha ac e and spa ial s uc u es o plen y o ci ies, owns and illages. Jus o he a ea o he Czech Republic, whe e also ansi ion o economy in las wo decades has o be conside ed, es ima ions a y be ween 8.5 and 11.7 housands o such si es on a eas be ween 27–38 housand hec a es [4]. These b own ields si es a e loca ed in a ious loca ions. On one hand, plen y o b own ields could be ound in inne pa s o la ge ci ies, on he o he hand some o b own ields a e ag icul u al ac i i ies could be ound in almos e e y u al munici- pali y [13]. I is ob ious ha ede elopmen po en ial o di e en ypes o b own ields di e acco ding o loca ion and i s consequences (e.g. loca ion wi hin a ci y, p oximi y o he cen e , p oximi y o highway e c.). Bu also o he ac o s like poli ical, cul u al o en i on- men al issues ha e o be se iously aken in o accoun oo. The p oposed pape is ying o ollow he heo e ical deba e on ede elopmen po en ial o indi idual b own ields and i s classi ica ion. Applica ion o one o me hods (A-B-C classi ica ion) on example o se o b own ields in he Sou h-Mo a ian Region and he Ús í Region o he Czech Republic is employed in he la e pa o his pape o iden i y po en ial o a ious ypes o b own ields and o show he p ac ical use o his me hod. 1. Ra ionale behind B own ields Classi ica ion B own ields classi ica ion, i.e. hei so ing in o ca ego ies, is he nex s ep ha has o be employed a e hei iden i ica ion, desc ip ion and mapping [24]. I has o be s essed ha classi ica ion in gene al is la gely a heo e ical and concep ual ask. So ing o b own ields in o ca ego ies should be i al o he choice o egene a ion s a egies and concep s [20]. Se e al classi ica ion sys ems we e de eloped wi hin esea ch s udies bo h in he Czech Republic ([25], [9], [15]) and many o hem in o he coun ies wi hin he Eu opean Union (e.g. [1], [21]) o ou o Eu ope (e.g. [23], [10], [11], [12]). Some o hese classi ica ions a e wo king wi h mo e economic indica o s [1], o he s a e mo e o ien ed on echnical and en i onmen al aspec s [21]. Di e en app oaches a e also employed i such classi ica ion is ca ied ou on he local, egional o e en na ional le el [6]. GIS me hods (e.g. [22]), whe e he ex en and loca ion o b own ields a e conside ed as he mos impo an ac o s [13], a e e y use ul o de elopmen o b own ields classi ica ions and o modelling o impac o b own ields on neighbou hoods. Such classi ica ions o e suppo o decision make s o iden i y indi idual b own ields o g oups o b own ields ha a e wo h o be ede eloped [5] o could also se e as he base o s uc u al help o economically weak egions [18], [19], [26]. REDEVELOPMENT POTENTIAL OF BROWNFIELDS: A-B-C CLASSIFICATION AND ITS PRACTICAL APPLICATION Lucie DoleÏelo á, Michal Hadlaã, Milada Kadleco á, S anisla Ma iná , Milan Polednik EM_02_14_zlom 4.6.2014 8:54 S ánka 34 Economics 352, XVII, 2014 Fo example he ci y o B no has one o he less p ac ical classi ica ion sys ems. C ea ed as a pa o he Pha e p og amme unded p ojec , i con ains 9 ca ego ies: 1a, 1b, 2a, 2b e c..., (which a e oo complica ed and do no de ine he egene a ion po en ial o he si e). Mos o hem saw a li le p ac ical use, o example in di ec ing public unding o b own ield egene a ion. In ou opinion, he classi ica ion ecommended in he Eu opean P ojec Cabe ne [3] is he mos use ul o decisions abou public unding. This classi ica ion, simila o he classi ica ion used in he Uni ed Kingdom Na ional B own ield Regene a ion S a egy [4], di ides b own ields in o h ee A-B-C ca ego ies as o hei de elopmen po en ial. The A si es a e so called sel -de eloping si es. Thei egene a ion can be ealized in he ee ma ke economy wi hou he need o public unding ( o mo e commen s on impo ance on ma ke o b own ields ede elopmen c . [21]. The Bsi es a e "po en ial de elopmen " si es which equi e some (possibly indi ec ) o m o public unding. These p ojec s can be ealized only wi h a ma ginal p o i abili y, he e o e hey appea oo isky o p i a e in es o s. Regene a ion o he C ca ego y "non-de eloping" si es ep esen s a inancial loss o he in es o . I is ca ied ou in jus i ied cases (en i onmen p o ec ion, sa e y, eal es a e ma ke suppo e c.) wi h public unding and o en by public en e p ise. P i a e en e p ise is no in e es ed in C si es, because he egene a ion cos s will no gua an ee he inc ease in alue o he si e ha would enable u u e de elopmen . Such in es men made by public adminis a ion could pay o la e , o example i he si e becomes sui able o building. Some la e s udies include aDca ego y o pe manen ly de elic si es [2] ha equi e no in es men , bu may become egene a ed by he p ocess o na u al succession. In he condi ions o he Czech Republic his ca ego y is jokingly e e ed o as he "sel - des uc ing" ca ego y. The e a e usually de elic buildings which a e g adually (and mos o en illegally) aken apa o cons uc ion ma e ials, and he emnan s a e o e g own. The A-B-C classi ica ion, commonly known among expe s, was used in he documen app o ed by he go e nmen o he Czech Republic – he Na ional S a egy o B own ield Regene a ion [4] ha was acknowledged by he Go e nmen o he Czech Republic. I was no , howe e , used o public decisions ega ding b own ields and hei managemen , because he heo y, in ou ci cums ances, is only ca ching up o p ac ice. The A-B-C classi ica ion is highly in o ma i e abou he ede elopmen po en ial o b own ields, because he a io o egene a ion cos s o he u u e si e alue akes in accoun bo h he loca ion and he s a e o he b own ield, see Fig 1. Fig. 1: B own ield ede elopmen ypes – he A-B-C Model Sou ce: h p://www.cabe ne .o g.uk EM_02_14_zlom 4.6.2014 8:54 S ánka 35 Ekonomie 36 2014, XVII, 2 Aco ec classi ica ion o a b own ield in o he A-B-C ca ego y equi es no only he knowledge o i s cu en s a e, bu also he knowledge o he in ended u u e use o he si e, so ha he egene a ion cos s can be p ope ly assessed. Al hough we do no know he me hods used in a ious na ional s a egies o b own ield classi ica ion, classi ica ion esul s a e o en used in documen s. Acco ding o a F ench s a egy om 1980s [7], only an es ima ed 10% o si es we e in he A ca ego y. ACanadian s a egy [17] es ima ed ha 60–70% o all b own ields belong o he B ca ego y. The Uni ed Kingdom na ional s a egy also uses aclassi ica ion sys em. In 2007, he Czech- In es agency concluded he Sea ch S udy o Loca ion o B own ields, execu ed be ween 2005 and 2007 in 13 egions ou o P ague. The S udy mapped 2,355 si es wi h he o al ac eage o 10,362 hec a es. The pu pose o he s udy was no o achie e a cumula i e mapping o all b own ields. I egis e ed only a ep esen- a i e sample o 100, 200 o 250 si es pe egion. Si es ideal o p epa a ion o egene a ion p ojec s and possible inancing om s uc u al unds we e la e selec ed in he so called 2nd and 3 d s age. This is o en o e looked when i comes o in e p e a ion o he s udy esul s. Al hough he s udy does no yield he o al numbe o b own ields, some o i s esul s p esen in o ma ion alid o he en i e Czech Republic. The idea o apply economic analysis o he s udy da a o he de elopmen o aclassi ica ion sys em sugges ed i sel . 2. The Economic Analysis o he De elopmen Po en ial Pe o med on a Sample o B own ields A ep esen a i e sample o 36 b own ields om he Ús í Region and 44 b own ields om he Sou h Mo a ian Region was selec ed o he economic analysis. Simila ly o he abo e men ioned Sea ch S udy, si es bo h cen ally loca ed and emo e, o a ying ac eage, a ious o me and u u e use and di e en deg ees o land co e age we e selec ed. The egions we e selec ed so ha bo h economic si ua ion and loca ion o he egion would ma kedly in luence he A-B-C classi ica ion o he si es. The pu pose o he s udy was o e alua e he pos - egene a ion "comme cial po en ial" o he si es based on he collec ed da a. The esul ing pos - egene a ion plo (o eal es a e) p ices, including in es men cos s and e en ual sub en ion unding, we e compa ed wi h eal es a e ma ke p ices ypical o he loca ion. The p incipal aim o he s udy was an assessmen o economic easibili y o egene a ion, i.e. compa ison o in es men p o i abili y om he in es o iewpoin . The esul o he analysis was a s a emen o how many and possibly wha kind o p ojec s/si es a e ealizable on "comme cial basis", ha is wi hou sub en ions, and belong o he A ca ego y, how many and wha kind o p ojec s equi e public unding and belong o he B ca ego y, and how many and wha kind o p ojec s a e no ealizable e en wi h he assump ion o public unding, and he e o e belong o he b own ield C ca ego y. Bo h gene al and ai ly de ailed in o ma ion abou indi idual si es was collec ed du ing he i s s age o he Sea ch S udy. The da a included loca ion iden i ica ion, desc ip ion o he ac eage and he land co e age o he si e, and i s o me , cu en and an icipa ed u u e use. Owne ship o he si e was de e mined, and limi a ions imposed by na u al and echnical condi ions and zoning. Da a on anspo a ion access, exis ence o ecological bu den and e en ual in es men goals we e collec ed, and a ough es ima e o si e e i aliza ion cos s was p oduced. This i em in he si e desc ip ion caused many di icul ies o he Sea ch S udy au ho s. The es ima es could signi ican ly de ia e om eali y ei he as an o e alua ion, o unde alua ion. Simila ly o he Sea ch S udy, si es bo h cen ally loca ed and emo e, o a ying ac eage, a ious o me and u u e use and di e en deg ees o land co e age we e selec ed. The es ima es p esen ed a simila hind ance o he economic analysis, pa icula ly he lack o mo e de ailed so ing o egene a ion cos s, whe e he i em " eal bu dens" we e omi ed, as well as di ec and consequen ial in as uc u e cos s. Real bu dens (ecological bu dens) in pa icula can be ealis ically es ima ed o many si es, and al hough hey we e men ioned in he si e desc ip ions, hey we e no quan i ied. While he es ima e o in as uc u e in es men would be possible in he o m o an o e all cos ac ion ela i e o ac eage, he es ima e o consequen ial in es men s ou side he loca ion, namely hose associa ed wi h p o iding anspo a ion access, could pose a p oblem. In es men needs would ha e o be adequa ely checked o all ypes o in as uc u e EM_02_14_zlom 4.6.2014 8:54 S ánka 36 Economics 372, XVII, 2014 ( anspo a ion access o a loca ion is o en in e connec ed wi h b oade anspo a ion p oblems o i s espec i e municipali y). Wi h ega d o he ci ed issues, he inal e alua ion was ocused p edominan ly owa ds a gene al p o i abili y assessmen o he in es men s. The a e age egional esul s es ima e he gene al ecological and o he eal bu dens in he amoun o 10–15% o he o al egene a ion cos s ( equi ing a co esponding inc ease in g an unds). 3. The Assessmen Me hod o aSi e De elopmen Po en ial Alocal ma ke p ice and a eal es a e saleabili y coe icien we e de e mined o each si e based on i s p incipal unc ion and loca ion, including e alua ion o anspo a ion access ( he de e mi- na ion o local ma ke p ice and saleabili y o eal es a e was based on sou ce ma e ials om he Regional In o ma ion Ins i u e, L d., pa icu- la ly om a da abase moni o ing apa men p ices and en (also known as KISEB – Komplexní In o maãní Sys ém Ekonomiky Bydlení – he Complex In o ma ion Sys em on Housing Econo- mics), es ablished by he Ins i u e in 2000). Asynop ic in en o y including a loca ion map was p epa ed o each si e. The o al p ice o he plo was de e mined om he si e ac eage and he ma ke p ice o he plo pe m2(pos - egene a ion). To al loo space o building s uc u es and loo index we e used o de e mine an es ima ed ep oduc ion cos o buildings wi h ega d o hei unc ion, u he adjus ed by he a e age amo iza ion es ima e and saleabili y. In indi idual cases, he in es men expendi u e o e i aliza ion es ima e was compa ed wi hin building ep oduc ion cos . Cases whe e e i aliza ion cos s exceeded 100% o ma ke p ice we e ma ked in he synop ic in en o y, as well as cases whe e he cos s ep esen ed less han 10% o ma ke p ice. Such a iabili y in he e i aliza ion cos s indica es dissimila app oaches o e i aliza ion cos s assessmen . Acompa ison o he p e- and pos - e i aliza ion ma ke p ice was pe o med, and he need o in es men s was de e - mined o a 40% s. 85% g an inancing scena io. The esul was an e alua ion o he in es o 's ne p o i o loss wi h espec o he an icipa ed ma ke p ice inc ease and in es men p o i abili y. Local plo ma ke p ices we e de e mined based on esiden ial eal es a e saleabili y coe icien s (i.e. esiden ial eal es a e ma ke p ices), assuming ha a eal es a e ma ke p ice equals he building ep oduc ion cos plus he ma ke p ice o he plo . Known p opo ions o plo ma ke p ices based on hei use (indus ial, s o age, esiden ial, comme cial) we e also u ilized. The saleabili y coe icien was he s a ing pa ame e o in es men p o i abili y e alua ion. Real es a e saleabili y was de e mined o each loca ion by he Regional In o ma ion Ins i u e, L d., which moni o s eal es a e p ices in he Czech Republic since 2000. Real es a e saleabili y (saleabili y coe icien ) was de e mined as he a io be ween ma ke p ice and he ep oduc ion cos (i.e. he building cos minus amo iza ion). I exp esses he ela ionship be ween building in es men s and he cu en p ice o which he building could be sold a he p esen ime. The saleabili y coe icien o esiden ial eal es a e exp esses he s a e o supply and demand equilib ium in agi en loca ion. Al hough i was de e mined pa icula ly o he esiden ial ype o eal es a e, i would be simila o saleabili y coe icien s o o he ypes o eal es a e a he ime. Saleabili y coe icien s a e commonly lis ed in he egula ions o he Minis y o Finance o he Czech Republic on p ope y alua ion, e.g. Regula ion No. 617/2006 Sb., amending Regula ion No. 540/2002 Sb., on implemen a ion o ce ain p o isions o Ac No. 151/1997 Sb., on P ope y Valua ion and Amendmen s o Ce ain Ac s (P ope y Valua ion Ac ), as amended. The o e all assignmen o saleabili y coe icien s o municipali ies g ouped acco ding o hei size in indi idual dis ic s o he Czech Republic limi s he applicabili y o such coe icien s. I he saleabili y coe icien is less han 1.0 e.g. 0.5, hen i is p obable ha he owne can sell he building o a 50% o he ep oduc ion cos . I such building should be newly cons uc ed, a100% o ep oduc ion cos would ha e o be conside ed. (Va ia ion o building cos s in he Czech Republic depending on loca ion is ai ly small.) I he saleabili y coe icien is g ea e han 1, i is sa e o assume ha he inc ease o eal es a e p ices abo e he ep oduc ion cos EM_02_14_zlom 4.6.2014 8:54 S ánka 37 Ekonomie 38 2014, XVII, 2 will be e lec ed in an inc ease o plo p ices (e.g. plo s in ci y cen es and a ac i e ci y loca ions sui able namely o he comme cial, adminis a i e and accommoda ion use). P e alen saleabili y o eal es a e wi h he coe icien alue less han 1 e lec s: aless han ideal loca ion o such eal es a e (namely be o e 1990), aless han he ideal s uc u e o such eal es a e (i does no ep esen he bes possible use o he si e), asu plus o such ype o eal es a e in he en i e Czech Republic o on he local ma ke (e.g. ag icul u al eal es a e be o e 1990). The saleabili y coe icien gi es new in es o s a clea signal abou in es men isks o a gi en loca ion and eal es a e ype. On he o he hand i indica es he need o public unding, i such eal es a e should be sus ained. 4. Economic Analysis Resul s I can be said ha he loca ion o he Sou h Mo a ian Region and Ús í Region wi hin he Czech Republic adically in luenced he a e age plo ma ke p ices and he saleabili y o all eal es a e (buildings), and he e o e also he egene a ion p o i abili y o all si es. The o al ac eage o b own ields subjec o he s udy was app oxima ely 342 ha in he Sou h Mo a ian Region (44 si es) and 243 ha in he Ús í Region (36 si es). Bu den magni ude can be exp essed ela i ely o he numbe o inhabi an s o he Region. The Sou h Mo a ian one hus exhibi s a pe capi a bu den Tab. 1: Summa y esul s o he economic po en ial analysis o b own ield si es Line Indica o Uni Sou h Mo a ian Region Ús í Region 1Si e ac eage m23,418,330 2,431,963 2Floo space o buildings m2308,939 652,373 3G oss es ima e o si e e i aliza ion cos s mil. CZK 5,235 4,409 4Si e e i aliza ion cos s as a pe cen age o ep oduc ion cos % 39% 31% 5A e age amo iza ion es ima e % 69% 63% 6Fu u e si e use coe icien (a e age) - 0.90 0.89 P ices as o 2007 7Plo ma ke p ice CZK/m2471 341 8Saleabili y coe icien - 0.85 0.58 9To al plo ma ke p ice mil. CZK 1,610 829 10 Building ep oduc ion cos wi hou amo iza ion mil. CZK 13,430 14,319 11 Building ep oduc ion cos wi h amo iza ion mil. CZK 4,148 5,289 12 Ma ke p ice o buildings be o e e i aliza ion mil. CZK 3,509 3,065 13 Ma ke p ice o buildings a e e i aliza ion mil. CZK 7,719 5,587 14 In es men s needed wi h 40% g an unding mil. CZK 3,141 2,645 15 In es men s needed wi h 85% g an unding mil. CZK 785 661 16 Building ma ke p ice inc ease mil. CZK 4,210 2,522 17 Plo ma ke p ice inc ease* mil. CZK No e alua ed No e alua ed 18 To al eal es a e ma ke p ice inc ease mil. CZK 4,210 2,522 19 P o i /loss on in es men a 40% g an unding mil. CZK 1,069 -124 20 P o i /loss on in es men a 85% g an unding mil. CZK 3,425 1,860 21 In es men p o i abili y a 40% g an unding % 34% -5% 22 In es men p o i abili y a 85% g an unding % 436% 281% * No e alua ed because o missing da a on eal bu dens, ecological bu dens in pa icula . Sou ce: Regional In o ma ion Ins i u e, L d. EM_02_14_zlom 4.6.2014 8:54 S ánka 38 Economics 392, XVII, 2014 o 3.02 m2/inhabi an and he Ús í Region only ma ginally lowe alue o 2.95 m2/inhabi an . The esul s we e p ocessed in o he synop ic in en o y o each si e (a p i a e ou pu ), in o summa y ables con aining selec in o ma ion o all si es and in o an o e iew able (Tab. 1). The a e age saleabili y coe icien was 0.85 in he Sou h Mo a ian Region, 0.58 in he Ús í Region. 38 ou o 44 si es we e ound o ha e saleabili y less han 1 in he Sou h Mo a ian Region. 33 ou o 37 si es we e ound o ha e saleabili y less han 1 in he Ús í Region. Si es wi h he eal es a e saleabili y coe icien g ea e han 1.1 can be conside ed unequi ocally comme cially a ac i e o in es o s e en wi hou g an unding (unless excessi e eal bu dens o in es men isks exis ). These si es belong in o he ca ego y A. Ano he g oup, classi ied B acco ding o he P ojec Cabe ne , con ains si es wi h he saleabili y coe icien equal o smalle han 1.1, bu g ea e han 0.75. These si es can be some imes egene a ed e en wi hou di ec public unding (e.g. when public in as uc u e is imp o ed, namely anspo a ion access o he si e). These si es ep esen lowe in e nal cos s o he in es o , o he in es men p o ides compa a i e supplemen al ad an ages. The ac ha in some cases he egene a ion cos s we e no p ope ly es ima ed needs o be conside ed. The e o e he ca ego y B is de ined a he b oadly. Remaining si es wi h he saleabili y coe icien less han 0.75 make up he g oup o unp o i able p ojec s, ma ked by he le e C. The majo i y o b own ield si es in bo h egions ell in o he ca ego y C. The ollowing able (Tab. 2) p esen s an o e iew o he numbe and ac eage o si es and hei espec i e A-B-C classi ica ion. Tab. 2: Classi ica ion acco ding o he P ojec Cabe ne Region Ca ego y A Ca ego y B Ca ego y C To al Numbe To al Numbe To al Numbe To al Numbe To al o si es ac eage o si es ac eage o si es ac eage o si es ac eage in m2in m2in m2in m2 Sou h Mo a ian 10 507,380 12 544,490 31 2,366,460 44 3,418,330 Ús í 2 128,997 7 665,466 28 1,637,500 37 2,431,963 Sou ce: Regional In o ma ion Ins i u e, L d. Si es in ci y cen es o a anspo junc ions, ep esen ing oppo uni ies o business, accom- moda ion, o adminis a i e use we e comme cially he mos a ac i e o in es o s. Ag icul u al eal es a e (plo s o buildings) appea ed comme - cially unin e es ing – bu hei con inuing nega i e de elopmen could no be unequi ocally an icipa ed in he long un (wi ness he ecen signs o ag icul u e p oduc ion e i al). The a e age plo ma ke p ice was ound o be 471 CZK/m2in he Sou h Mo a ian Region and 341 CZK/m2in he Ús í Region. The plo ma ke p ice anged om 45 o 1,254 CZK/m2 in he Ús í Region and om 98 o 1,397 CZK/m2 in he Sou h Mo a ian Region. 40% g an unding would help achie e p o i abili y in 14 ou o 37 si es in he Ús í Region, and in 27 ou o 44 si es in he Sou h Mo a ian Region, bu only on he assump ion o ze o ecological o o he eal bu dens, o example in as uc u e cos s. 5. Upda e o he Yea 2012 The economic analysis was execu ed in 2007, when he eal es a e c isis was jus looming on he ho izon, and did no ye a ec he applied eal es a e p ice s a is ics. Real es a e p ices, pa icula ly esiden ial eal es a e and plo s, g ew sha ply be ween 2005 and 2008 (see Fig. 2). The apid inc ease o eal es a e p ices boos ed he building ade and in es o s' p o i s. Inc easing esiden ial eal es a e p ices a e 2005, coupled wi h s agna ion o en al incomes, led o he decline o annual a es o g oss eal es a e en al income, which was e iden in he decline o he building cons uc ion ac i i y. The dec ease o eal es a e p ices con inuing om 2008 un il he p esen ime EM_02_14_zlom 4.6.2014 8:54 S ánka 39 Ekonomie 40 2014, XVII, 2 somewha cu bed he all o en al incomes, bu only by a ew pe cen age poin s (compa ed o 2000, he g oss annual e u n a e is lowe by app oxima ely one hi d, and he ne e u ns – capi aliza ion ell e en sha pe (because main enance, adminis a ion and ope a ion cos s g ew as e ). The all o eal es a e p ices since 2008, di e en ia ed acco ding o he eal es a e ype, led o a decline o in es men s and dep ession o he building indus y. Public sou ces (namely EU g an s, no as much go e nmen spending which is being cu ailed) and he Czech Na ional Bank policy o "cheap money" esul ing in a dec ease o mo gage a es seem o o se he decline in comme cial in es men s. The p incipal cu en esul o his pa icula mac oeconomic policy mix is a g oss domes ic p oduc decline, and mos no ably adec ease o amily consump ion and a enua ion o he in es men po ion o public budge s. Abundan ly a ailable eal es a e ep esen s a u u e bu den, as he si ua ion ends o u he dep ess ma ke p ices. The e ec i e use o olde comme cial eal es a e wi h high ope a ion cos s and excessi e p opo ion o econs uc ion cos s is di icul unde hese condi ions. This applies o b own ields di ec ly. Fig. 2: The de elopmen o selec ed eal es a e indexes in he Czech Republic Sou ce: Czech S a is ical O ice, Regional In o ma ion Ins i u e, L d. Following he A-B-C si e classi ica ion in 2012, a decline in saleabili y o all si es can be expec ed, coupled wi h he dec ease o he saleabili y coe icien and lowe e u n on in es men ( he decline in ne e u ns). The decline a e is de e mined pa icula ly by he decline o capi aliza ion ( he annual e u n a e) o comme cial p ojec s, which is he highes o apa men s (up o 20%), and es ima ed 10 o 15% o comme cial eal es a e, whe e i is ob iously signi ican ly lowe o new cons uc ions and signi ican ly highe o olde comme cial eal es a e wi h high ope a ion cos s and excessi e p opo ion o econs uc ion cos s (which again applies o b own ields). The c isis has a ec ed mo e deeply egions wi h la ge sys emic p oblems: he Ús í Region expe ienced he mo e p onounced decline o ma ke p ices and saleabili y. The Sou h Mo a ian Region belongs, on he con a y, o he egions wi h he less p onounced decline. The e u n a e by he egion is, on he o he hand, highe in he Ús í Region, bu he ( ela i ely) highe e u ns he e come wi h EM_02_14_zlom 4.6.2014 8:54 S ánka 40 Economics 412, XVII, 2014 highe en e p ise isks and he deepe dec ease o eal es a e p ices, and he e o e wo se u u e p ospec s. Fu he changes since 2007 necessi a e an upda e o loca ion signi icance o indi idual si es ela i e o new de elopmen hubs and co ido s. This conce ns p incipally si es nea he highway D8 in he Ús í Region and p oximi y o he Îa ec-Ha aÀ-Lo osice indus ial zone, whe e he supply o g een ield cons uc ion plo s dampens he in e es in b own ields. The Sou h Mo a ian Region is in a mo e s able si ua ion. Impac o he economic dep ession on com- me cial eal es a e and concomi an inc eases o en e p ise isks lead o he conclusion ha he limi alues o he saleabili y coe icien – asyn he ic c i e ion o he assessmen o si e de elopmen po en ial – will equi e an adjus men . In he cu en si ua ion i would be app op ia e o mo e up he limi alues o he saleabili y coe icien o A-B-C classi ica ion ( o he ca ego y A g ea e han 1.1 e c). The cu en b own ield ma ke is e y na ow, i no dead. Mos b own ield si e owne s ha e no choice bu o wai un il he si ua ion imp o es, while in many cases hey will ha e o adjus hei expec a ions o he income om an e en ual b own ield sale. 6. Adjus men o G an Funding P og ammes o he B own ield Regene a ion The app oaching end o he 2007–2013 p og amming pe iod will ma k he conclusion o he i s , and likely he las , massi e in lux o EU unding in o he Czech Republic. A pe iod o in ensi e p epa a ion o unding p og amme s o he suppo o b own ield egene a ion anspi ed in 2006 du ing he ime o apid eal es a e p ice inc eases. Owne s, de elope s and in es o s we e a ac ed o in es men in o b own ields, and unding p og ams we e supposed o accommoda e he p ocess. In he inal e sion o mos p og ams, de elope s we e excluded om g an unding o b own ield egene a ion p ojec s, and he p inciple o unding gap was abolished. In addi ion o g an unding p og ammes o b own ield ede elop- men , he Real Es a e P og amme, a pa o he Ope a ional P og amme En e p ise and Inno a ion (Podnikání a Ino ace), has become he mos signi ican b own ield egene a ion p og amme. To-da e he Real Es a e P og amme has alloca ed CZK 11 billion, he majo i y o which had been used o comme cial eal es a e egene a ion by small o medium-size manu ac u ing businesses. Aside o he Real Es a e P og amme, o ganiza ions go e ned by public law, namely municipali ies, can also acqui e g an unding o b own ield egene a ion h ough egional ope a ional p og ammes. Howe e , he p ojec numbe s and alloca ion amoun s in hese p og ammes a e signi ican ly lowe . G an unding is also u ilized o econs uc ion o egene a ion o a ms o ag ibusiness h ough he Ru al De elopmen P og amme (P og am oz oje enko a). I is impo an o poin ou ha he g oup o b own ields iden i ied in he Sea ch S udy o 2007 does no o e lap wi h he g oup o b own ields co e ed by g an unding p og ammes almos a all. The eason is ha g an applican s, mos o en en ep eneu s, a e in e es ed in business p o i abili y, and i hey op o b own ield egene a ion, hey p e e well loca ed si es ee o obs acles in he o m o massi e con ami- na ion o p ope y igh s complica ions. Consequen ly he g an unding suppo s mos o en he egene a ion o A- o B- ype si es, which heo e ically would no need such suppo , o i could be e ec ed in ano he han di ec inancing o m. The only Regional Ope a ional P og amme in he Mo a ian- Silesian Region in ended o p e- ede elop- men o b own ield si es ia demoli ions and land eclama ion, which could be applicable also o C- ype si es, is no achie ing success ul alloca ions. Conclusion The economic s udy o b own ield ede elop- men po en ial in he Ús í Region and he Sou h Mo a ian Region has shown ha C- ype si es a e he mos p e alen b own ield ca ego y. In s uc u ally challenged egions his ca ego y a ou numbe s he ca ego y B. Economically s onge egions ha e a highe numbe o B- ype si es, ye only app oxima ely 10% o b own ields all in o he ca ego y A, which co esponds wi h he es ima e gi en in he abo e quo ed eigh ies F ench egene a ion s a egy. Con empo a y unding p og ammes a e adjus ed in such way ha hey suppo namely " eady" egene a ion p ojec s, o en on EM_02_14_zlom 4.6.2014 8:54 S ánka 41 Ekonomie 42 2014, XVII, 2 A- ype b own ields. This app oach, whe e egene a ion is suppo ed by p ojec selec ion ins ead o sys ema ically, ollows he egene a ion pa e n ypical o Wes Eu opean coun ies in he eigh ies. I is a na u al cou se o p og ess. The Czech Republic will appa en ly miss he chance o egene a e he p oblema ic b own ields in he ca ego y C while he e is he oppo uni y o d aw a la ge olume o inancial suppo om he Eu opean Union. Public adminis a ion is no eady o ake his s ep a any a e, because sys ema ic b own ield classi ica ion was no pe o med, p io i ies among he C- ype si es we e no es ablished (The Ope a ional P og am- me En i onmen (Îi o ní p os fiedí), on he o he hand, has me i s goals in he clean-up decon amina ion a ea, because classi ica ion and se ing o p io i ies we e i s pa , and i is no e en clea who should be pe o ming hese asks. Only hope emains ha he unded p ojec s con ibu e o a be e look o ou ci ies, illages and landscape, and a leas pa ially imp o e he si ua ion on he comme cial eal es a e ma ke . Municipali ies will be le wi h anumbe o p oblem si es wi h many ecological and o he bu dens dep essing he alue o eal es a e in hei neighbou hoods. Fo he sake o u u e, when massi e public suppo o egene a ion canno be expec ed, i is desi able ha sys em measu es a e pu in place ha would assu e mo e e ec i e suppo o b own ield egene a ion, o example in he sphe e o u ban planning and de elopmen as well as in he iscal sphe e. The ou come o P ojec NPV II No. 2D06025 "New Ins i u ional Ins umen s o Land De elopmen and Plo P epa a ion in P oblem A eas Focused on Re i aliza ion o Unused Buildings and Plo s", sec ion Economic analysis o de elopmen po en ial o ab own ield sample in he Ús í Region and he Sou h Mo a ian Region, execu ed in 2007, adap ed in 2012. This pape was suppo ed by he Minis y o Educa ion, You h and Spo s wi hin he Ins i u ional Suppo o Long- e m De elop- men o a Resea ch O ganiza ion in 2014 (School o Business Adminis a ion in Ka ina, Silesian uni e si y in Opa a) Re e ences [1] BARTKE, S. Valua ion o Ma ke Unce ain ies o Con amina ed Land. 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