André J. de Groot
projectmanager OBR / Kansenzones Rotterdam
Economic vision 2020
Focus on:• Mainport + industrial complex
• Medical cluster (Erasmus MC)
• Creative industries (AV, Multimedia)
‘Rotterdam continues, on the pathway to a balanced city’
Threat:• Growing group of
underprivileged (mainly ethnic) inhabitants
Extraordinary problems ask forfive action plans
10.12.04-4
Five cohesive action plans
1. Immigration, integration and citizenship
2. Stricter residence policy
3. Tackling nuisance, illegality and crime
4. Care, help and counseling
5. Specific and structural investments in economic development -> This includes Kansenzones (Economic opportunity zones)
Kansenzones: the area
Kansenzones: statistics
• 86.000 inhabitants from over 80 nationalities
• On average 60% immigrants, but in some parts over 80 % immigrants
• 40.000 habituated addresses
• ± 2.300 SME entrepreneurs
What does Kansenzones look like?
•Large attractive multicultural market in Rotterdam Feijenoord, twice a week, 60.000 visitors a week•Multicultural shopping streets•Large investment schemes for better houses, safety, youth, attractivity of economic climate and public areas
Kansenzones: statistics
• High percentages of:– Youth– (long-term) Unemployment– Immigrants vs. natives– Crime rate– Poor or no education– Low incomes and low purchasing power– Mobility (25% yearly)– Social housing
FinancialArrangements with
Banks
Communicationand promotion TAX Fund (OZB)
Redevelop Municipal
Real-estate foreconomicpurposes
50% investment premium
SME
Kansenzoneinstruments
ProjectDevelopment
(new instruments)
Budget Kansenzones
State *) 24 millionEntrepreneurs > 24 million Subtotal > 48 million
City council 24 million Total > 72 million
*) De Minimus EU-regime (max. € 100.000/entrepeneur)
Kansenzones partners:
• Municipal Tax Services• Social- and employment services• City planning• City services• Borroughs of Rotterdam• Market parties (banks, intermediaries,
etc.)• Schools
Current state of Kansenzonesfirst year
• Nearly 500 requests for investment premiums from SME entrepreneurs (10% of total SME-population):– > € 23 million investments by entrepreneurs– > 150 requests already granted in all kinds of
SME sectors,– mainly established entrepreneurs instead of
new comers as expected
1. Investment premiums for entrepreneurs
Current state of Kansenzones
Transforming primary school building into a state of the art business center for 30 young starting entrepreneurs, with extra business support services: training, coaching, secretarial services etc.
Investment: nearly € 2 million
Ready: summer 2006
2. Redevelopment Municipal Real-estate
Current state of Kansenzones
• Measures entrepreneurs asked for: extra street lightning, attractions for children, bicycle racks, extra safety, publicity en promotion actions, etc.
• Stop & Stop: free parking time for shoppers
• Shop & Win: promotional action
• Image campaign to promote the South of Rotterdam
3. OZB tax fund
Expansion options for the Kansenzones project
1. Area expansion– Expansion outside Rotterdam South
• Risk of diffusion
– Expansion in Rotterdam South
2. Adding new instruments– Social Welfare– Education– Stimulate qualification for the labour market
for riskful youth groups together with schools and market parties (BOP)
Sustainability project resultsWhat to measure and how to measure
1. Active monitoring on results participating entrepreneurs
2. Developing a monitor system to measure the results on the long run (input/output, cost effectiveness, etc.)
3. Generate ideas / new instruments to improve the cost effectiveness for tackling the social-economic problems in socially weak borroughs
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