The COVID-19 pandemic had a profound and negative impact on communities around the world, highlighting the need for greater investment in public health, economic resilience, and social systems to ensure that communities are better prepared for future crises.
On the plus side, there is no lack of awareness about the challenges our cities and communities are facing. But finding a solution will take collaboration and cooperation from governments, privately owned companies and the people that use our cities and spaces.
Enter public-private partnerships (PPP).
City leaders and private entities are showing an increasing interest in working together to drive urban regeneration that contributes transformational economic and social value for communities.
Building on discussions at its Urban Transformation Summit in Detroit in October 2022, the World Economic Forum is partnering with Avison Young to develop a taskforce to examine the challenges facing PPP participants in building effective social value objectives into their partnership agreements. The aim is to identify tools and resources which highlight best practice and aid in creating sustainable, good-quality places for people, and positive social outcomes for all.
Dr. Eime Tobari, Social Value Director at Avison Young, and Emily Ives, Research Analyst are spearheading the company’s leadership of the Driving Social Value In Urban Regeneration Taskforce.
“Real estate is more than just a collection of buildings and spaces. It’s part of the urban fabric that shapes our lives. Our industry has the potential to make a positive impact in places and communities we operate in. It also makes good business sense for everyone involved when you consider long-term effect of our day to day activities,” says Eime.
There is increasing recognition and importance being attached to social value – but social value creation is often seen as a cost burden by those in the private sector,” she explains.
Innovative forms of partnership between the two sectors are required to achieve both social value creation and commercial viability. That’s where the taskforce really comes into play.
“Through this initiative, we are addressing a critical knowledge gap in the emerging field of social value. Our research will help both public and private entities alike to structure urban regeneration projects that develop a stronger sense of place and community,” says Emily, whose role as a project Research Fellow involves coordinating day-to-day operations, conducting background research, and making connections with interviewees.
PPPs can be complex and require careful planning and management to ensure that all parties benefit from the partnership – and deliver on their commitments - over the long term. However, when done well, they can provide a way for governments to deliver important public services and infrastructure while also stimulating economic growth and development.
“The first phase of work is a deep dive into the challenges and opportunities facing both private and public stakeholders in PPP relationships. We will be looking to gain valuable insights and perspectives from city leaders, practitioners, experts and policy makers,” adds Emily.
The three initial areas of exploration are:
“One of the things we love about this initiative is that we can use a full range of Avison Young’s knowledge and skills, spanning from urban regeneration, financial structuring to real estate investment and management, to enhance our collective knowledge on social value creation in urban regeneration projects for the industry. Projects that address socio-economic challenges and ultimately enhance our quality of life,” says Eime.
“As advisors on every aspect of real estate development, investment, occupation and management across a myriad of buildings and places, everything we do every single day has a range of social impacts. It’s our responsibility and opportunity to reflect on our activities, to reach out and bring others on the journey with us.
“From my perspective, this is a call to action for all of us to take a step back, evaluate and consider wider stakeholder groups who are impacted by our work one way or another, and look for ways to minimize negatives and maximize the positive impacts on each group – particularly for local communities rather than just the direct participants in a scheme” Eime says.
Phase I of this initiative will culminate in an insights report outlining themes, best practices, and case studies identified through expert interviews to be published in Summer 2023.
“Following the publication of the insights report, working together with the World Economic Forum we will convene a task force which will work on guidance and solutions to facilitate successful PPP, adding measurable social value to communities through urban regeneration projects,” says Emily.
