Munich: Cooperation with owners planned for land acquisition

In developing the new district on the northern outskirts between Ludwigsfeld, Feldmoching, and Fasanerie Nord, the city of Munich is taking a new approach. Instead of coercive measures, it relies on negotiations for land acquisition. Munich's Lord Mayor Dieter Reiter (SPD) announced that urban development measures would be waived in the development of the new district. Property owners no longer have to fear capped land prices and expropriations.

Unique experiment of the city of Munich

Since an urban development measure can lead to a long process, Munich is now daring a unique experiment. The city wants to develop a cooperative urban development model. The city administration was commissioned by Dieter Reiter to develop a concept for urgently needed housing while taking into account the interests of all local stakeholders. To access the area, individual negotiations with most of the 400 to 500 landowners are required. It is not yet certain how many owners there actually are. A large part of the required land is owned by large-scale farmers.

Many owners ready to cooperate

According to Reiter, approximately 200 owners have already declared their willingness to cooperate, even though the conditions have not yet been finalized. Munich also wants to skim off planning gains without urban development measures. It is not yet clear what amounts owners or investors will have to pay. As Reiter announced, it is to be more than in the case of socially equitable land use. He envisions a joint company made up of owners and the city. To prevent boundless land speculation, Munich wants to secure the right of first refusal, including the possibility of a waiver declaration, if investors are interested in acquiring the property. The investors must accept the cooperation agreements.

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Pressure on owners

Munich is relying on the voluntary cooperation of property owners. Although the pressure tactic of expropriation is eliminated, pressure is still being built up. As Manuel Pretzl, the leader of the CSU city council parliamentary group, emphasizes, the city holds planning authority. If owners do not agree, they must expect that their land will not be developed. Efficient development could thus be made impossible. Whether the model will actually be successful depends on how the owners react. In the worst-case scenario, it could fail due to a lack of willingness to cooperate.

Less resistance and faster development

From the new model, Munich expects less resistance from owners and faster development than with an urban development measure. According to City Planning Director Elisabeth Merk, the planning time is expected to take up to ten years. Due to the abolition of the urban development measure, the properties can be sold again at market value. Munich anticipates a rapid increase in property prices. Over the past ten years, the price of agricultural land has risen from 10 euros per square meter to 350 euros per square meter. The experiment is already arousing the interest of farmers in the Daglfing district in the northeast of Munich. They are demanding an end to the urban development measure on their properties. Another new district is planned on an area of approximately 600 hectares between Daglfing and Johanneskirchen, which is to provide 15,000 apartments and 10,000 jobs. Approximately 200 property owners are affected by the measure.

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