airled 1 st peer review workshop budapest , 3 rd -5 th june 2013

airLED 1st PEER REVIEW WORKSHOP

Budapest, 3rd-5th June 2013

INSTITUTE OF URBAN DEVELOPMENTKRAKÓW, UL. CIESZYŃSKA 2

How to attract investors to airport regions

Wojciech JarczewskiMaciej Huculak

INSTITUTE OF URBAN DEVELOPMENTKRAKÓW, UL. CIESZYŃSKA 2

1. Importance of cities and regions in the pro-investment activities

2. Strategic planning of pro-investment activity

3. Pro-investment offers as a part of the development strategy

4. Specjal Economic Zones

5. Pro-investment promotion

6. Negotiations and services for investors

7. Embeddedness and after care policy

.

Pro-investment success factors

INSTITUTE OF URBAN DEVELOPMENTKRAKÓW, UL. CIESZYŃSKA 2

1. Importance of cities and regions in the pro-investment activities

Airport regions - pro-investment growth machine (investors in metropolitan areas)

Imortance of pro-investment vision (local and regional authority)

Pro-investment success factors

Pro-investment knowledge (know-how), money, technology

Available on the market

Pro-investment vision(real desire to attract

investors)

There must be a desire (in the hearts and heads)

of local and regional authorities

INSTITUTE OF URBAN DEVELOPMENTKRAKÓW, UL. CIESZYŃSKA 2

2. Strategic planning of pro-investment activity

- analysis, - objectives, - instruments, - activity, - monitoring and evaluation

Pro-investment success factors

INSTITUTE OF URBAN DEVELOPMENTKRAKÓW, UL. CIESZYŃSKA 2

3. Pro-investment offers as a part of the development strategy

- master plan, - real estate, - features of offers, - pricing, - tax incentives

Pro-investment success factors

Property

Master plan

Ownership Infrastructure

Transport accessibility

Price

Tax incentives

INSTITUTE OF URBAN DEVELOPMENTKRAKÓW, UL. CIESZYŃSKA 2

4. Specjal Economic Zones

Is it necessary in airport regions?

Where available, it is necessary!

Pro-investment success factors

INSTITUTE OF URBAN DEVELOPMENTKRAKÓW, UL. CIESZYŃSKA 2

5. Pro-investment promotion

- promotion as part of the place marketing,- promotion strategies, - indirect promotion, - direct promotion, - image of cities and regions, - the effectiveness of promotional activities

Pro-investment success factors

INSTITUTE OF URBAN DEVELOPMENTKRAKÓW, UL. CIESZYŃSKA 2

6. Negotiations and services for investors

- negotiation, - professional service, - cultural differences

Pro-investment success factors

INSTITUTE OF URBAN DEVELOPMENTKRAKÓW, UL. CIESZYŃSKA 2

6. Embeddedness and after care policy

- after care post-investment policy, - embeddedness, - support from local and regional authorities

Pro-investment success factors

INSTITUTE OF URBAN DEVELOPMENTKRAKÓW, UL. CIESZYŃSKA 2

7. Embeddedness and after care policy

- after care post-investment policy, - embeddedness, - support from local and regional authorities

Pro-investment success factors

INSTITUTE OF URBAN DEVELOPMENTKRAKÓW, UL. CIESZYŃSKA 2

Pilot implementation: Success of pro-investment policies Niepołomice (Krakow Metropolitan Zone)

Pilot implementation I.

Success of pro-investment policies Niepołomice

Institute of Urban Development30-015 Kraków, ul. Cieszyńska 2

www.irm.krakow.pl

Niepołomice

Small town (20 thousand inhabitants)

in the Krakow Metropolitan Area

Niepołomice 1990

• The bankruptcy of all five major companies• Loss of jobs in companies in Krakow (especially in the steel

mill)• Unemployment is around 30

Niepołomice 2010• 60 new companies (including Coca Cola, MAN and Royal Canin)• 470 million USD investment• 4.6 thousand new jobs• 3% unemployment

Population dynamics in chosen Małopolska municipalities 1996-2008

NiepołomiceWieliczk.

Skała

Krzeszowice

Słomniki

Proszowice

Dobczyce

Myślenice

Sułkowice

Skawina BochniaŚw. Górne

Kraków

Niepołomice population change 2000-2010

area 

population in ths. dynamics

2000 20102000-2010

%city 7,9 9,7 21,8commune 20,9 23,9 14,4Source: authors' own compilation based on GUS data

FDI in Małopolska Region

FDI in Malopolska

City of Niepołomice – The highest concetration ofFDI per capita In Małopolska

Source: Inwestycje zagraniczne … (2009)

Niepołomice Industrial Zone Labor Market

N = 2033 employees45% of total NIZ employment

Labor market in the Commune of Niepołomice

area arrivalsdeparture

s

 GUS

(2006)

authors'

(2009)GUS

(2006)Kraków 65,5 40,5 35,1Wieliczka County (poviat) 25,5 35,8 53,7Incl. Commune of Niepołomice 16,2 25,2 27,0other 9,0 23,7 11,2Source: authors' own compilation based on GUS data and own survey

INSTYTUTROZWOJU

MIAST

Budowa systemu proinwestycyjnego w gminie:Niepołomice success factors

importantimportant

v eryimportant

key

Ownership of land

INSTYTUTROZWOJU

MIAST

Budowa systemu proinwestycyjnego w gminie:Niepołomice success factors

importantimportant

v eryimportant

key

Ownership of land

Buying a brownfield

INSTYTUTROZWOJU

MIAST

Budowa systemu proinwestycyjnego w gminie:Niepołomice success factors

importantimportant

v eryimportant

key

Ownership of land

Buying a brownfield

Local Spatial Development Plan

INSTYTUTROZWOJU

MIAST

Budowa systemu proinwestycyjnego w gminie:Niepołomice success factors

importantimportant

v eryimportant

key

Ownership of land

Buying a brownfield

Local Spatial Development Plan

Repair of the great royal castle

INSTYTUTROZWOJU

MIAST

Budowa systemu proinwestycyjnego w gminie:Niepołomice success factors

importantimportant

v eryimportant

key

Ownership of land

Buying a brownfield

Local Spatial Development Plan

Repair of the great royal castle

Technical infrastructure

INSTYTUTROZWOJU

MIAST

Budowa systemu proinwestycyjnego w gminie:Niepołomice success factors

importantimportant

v eryimportant

key

Ownership of land

Buying a brownfield

Local Spatial Development Plan

Repair of the great royal castle

Technical infrastructure

The city as an investor

INSTYTUTROZWOJU

MIAST

Budowa systemu proinwestycyjnego w gminie:Niepołomice success factors

importantimportant

v eryimportant

key

Ownership of land

Buying a brownfield

Local Spatial Development Plan

Repair of the great royal castle

Technical infrastructure

The city as an investor

Cooperation with multiple partners

INSTYTUTROZWOJU

MIAST

Budowa systemu proinwestycyjnego w gminie:Niepołomice success factors

importantimportant

v eryimportant

key

Ownership of land

Buying a brownfield

Local Spatial Development Plan

Repair of the great royal castle

Technical infrastructure

The city as an investor

Cooperation with multiple partners

The high position of mayor

INSTYTUTROZWOJU

MIAST

Budowa systemu proinwestycyjnego w gminie:Niepołomice success factors

importantimportant

v eryimportant

key

Ownership of land

Buying a brownfield

Local Spatial Development Plan

Repair of the great royal castle

Technical infrastructure

The city as an investor

Cooperation with multiple partners

The high position of mayor

Coca-Cola and MAN

INSTYTUTROZWOJU

MIAST

Budowa systemu proinwestycyjnego w gminie:Niepołomice success factors

importantimportant

v eryimportant

key

Ownership of land

Buying a brownfield

Local Spatial Development Plan

Repair of the great royal castle

Technical infrastructure

The city as an investor

Cooperation with multiple partners

The high position of mayor

Coca-Cola and MAN

Pro-investment promotion

MANAGEMENT 1990-2000 (rowing - XX century)

2000-2010(control - XXI century)

Preparing investment offersOffers on parcels and the communal facilitiesmainly brownfield

Offers on the parcels partners: private and public owners, the regional government Mainly greenfield

Promotion of investment offers

Direct Promotion: networking with investors looking for location, distribution of investment offers

Indirect Promotion: PAIiIZ, Regional Investor Service Centre, Kraków Technology Park SEZ,

public support -

government grantsExemptions of the tax under the SEZSale of land to investors below cost to purchase (the regional government support through MPP)

Direct economic activitySłuchajZapis fonetyczny

Taking over failing companies by the municipalityDirect involvement in restructuring processes

Withdrawal from economic activity to a minimum (keep holding the auxiliary)

airLED 1st PEER REVIEW WORKSHOP

Budapest, 3rd-5th June 2013

INSTITUTE OF URBAN DEVELOPMENTKRAKÓW, UL. CIESZYŃSKA 2

How to attract investors to airport regions

Wojciech JarczewskiMaciej Huculak