Investing in integration

Due to the major spatial challenges facing the Netherlands, combined with an already heavily utilized above- and underground space, multiple land use and value creation are of great importance. It is no coincidence that the National Environmental Vision adopts the principle: “combinations of functions take precedence over single-use functions.” This report provides insight into the complex issues surrounding the financing of multiple value creation (also known as integration) in public spaces.

This research delves deeper into the role that investment platforms and funds can play in integrated financing and explores potential fund structures. Additionally, it examines the other instruments municipalities have at their disposal for integrated financing. Two key findings emerge from this research. On one hand, multiple value creation is complex, and so is its financing.

Part of this complexity lies in the abundance of possibilities. This raises the question of how far one should go in combining functions within a project. On the other hand, the research shows that there are plenty of opportunities, and that municipalities already have numerous options within the existing framework for integrated financing. In fact, these options are increasingly being applied, sometimes even without realizing it.

There are numerous financing structures that can be used to fund multiple value creation. They serve as tools for financiers to pool financial resources and invest according to specific strategies. Investment platforms and funds can be organized in various ways. In this report, we outline the key concepts and the ways these financing structures can be designed. In doing so, we make a distinction between investment platforms and funds.

The report applies the thinking around investment platforms and fund creation to two practical cases: the financing of integrated underground infrastructure projects and suburban green spaces.

The “underground” case is characterized by a high initial investment and benefits that materialize only after a certain period. Because revenues can be generated by the projects in this case, it is particularly well-suited for a revolving fund. In a revolving fund, the income generated by projects flows back into the fund and can be used to finance new projects. This can be implemented on various scales: ambitious and large municipalities might set up such a fund themselves, while smaller municipalities with less capacity could benefit from a national development fund.

In this project, collaboration with Bright was used to illustrate the two cases discussed in the report. Bright acts as the Atelier Master of the City Deal Public Space and has explored, through visual means, what investing in multiple value creation can offer in the design of public spaces.