Mexico Instruments for Urban Redevelopment

Project Summary:

In Mexico, urban population in 10 more metropolitan areas and 50 cities over the last thirty years has doubled. Most of the newer urban areas are developed with low-density housing development that resulted in a patched urban development pattern and forced low-income families to live far core urban areas. Such urban growth pattern also results in social instability and decaying infrastructure. To help address unsustainable urban expansion, the Mexican Government initiated the DUIS (Desarrollos Urbanos Integrales Sustentables; integrated sustainable urban development program) whose methodology and incentive package are geared towards green field initiatives through smart-growth and sustainable principles. The instruments for urban redevelopment under the DUIS Program aim at strengthening intra-urban redevelopment programs through support for a framework and package of incentives, including funding, subsidies, guarantees, access to equity funding, and/ or technical advice.

List of Activities:

• Supporting the Government of Mexico to promote green growth in urban areas through public-private intra-urban re-development projects
• Providing technical advice to strengthen the Desarrollos Urbanos Integrales Sustentables (DUIS) program through the design of a framework and a package of incentives (including funding, subsidies, guarantees, access to equity funds, and/or technical advice)
• Developing intra-urban redevelopment projects in medium-sized Mexican cities with public and private sector participation

Outcomes:

Output 1:

• Three cities with planned re-development projects (currently under review by the DUIS Program) would benefit directly from the proposal: Tlaquepaque, Jalisco; Guadalajara, Jalisco and Puebla, Puebla 

Output 2:

• The DUIS program has mobilized total investments for around US$2 billion (public + private, nation-wide). 

Output 3:

• 3 knowledge sharing/dissemination events with private and public stakeholders 

Output 4:

• DUIS program enhanced to include intra-urban redevelopment options 
• Policy and regulatory reform drafted and adopted at local level to support intra-urban redevelopment

Outcomes:

The project intends to develop a package of instruments (financial, legal, technical) to ensure that cities have feasible alternatives to increasing housing supply for urban residents beyond the expansion of urban areas. It is expected to support the DUIS initiative to develop a specific package of incentives for urban redevelopment which will act as a catalyst to improve medium-sized cities in Mexico.

Collaboration with K-Partners and Others:

The Korean Research Institute for Human Settlements (KRIHS) served as a main partner for the proposed activities. The KRIHS has extensive research and practical experience on urban redevelopment in Seoul and other major cities of Korea, in terms of financial incentives, regulatory and legal frameworks. It was also in charge of providing a linkage with major development companies and financial firms who had worked on redevelopment cases in downtown Seoul to get some advisory role from market participants. In addition, there was also collaboration with Seoul Metropolitan Government  to leverage its extensive experiences in re-development of urban centers to share their experiences and perspectives of providing incentive structures to promote high-density, mixed use development.