Redevelopment is the removal and replacement on site of existing new buildings, whether for similar or dissimilar purposes. From the Urban and Regional Planning point of view, ‘redevelopment’ refers to the total physical clearance of land through public acquisition with federal subsidy and the subsequence sale of the open sites thus created in accordance with a plan formally adopted by the local governing body. It is one of the treatments for the removal of ‘urban blight’ (a condition of economic dislocation, premature obsolescence and physical deterioration of large areas). These conditions include physical characteristics such as structural deterioration, missing sanitation facilities, structure in disrepair or lacking in elemental maintenance, presence of rubbish and refuse accumulation in yards and streets, adverse environmental influences such as noise, odours, dust and so on, missing community facilities such as school playgroups, public water and sewerage systems and adequate street and drainage facilities.
Redevelopment areas are those in which urban blight has advanced to such a degree that by nothing short of clearance is practicable. Even where simple forms of blight have not advanced to the degree where local standards would call for clearance, if complete forms of blight are present, redevelopment will obviously be the ultimate rational type of treatment for the area. The pattern of redevelopment may require changes in the size and shape of the site that cannot be secured at once. This arises where comprehensive renewal is needed to meet modern traffic conditions and the existing small units of development have to be amalgamated for rebuilding purposes. The problem in assembling sites for development however, is creating a unit sufficiently large enough to meet modern planning needs.
One important consideration in estate management is that unless the increase in value on redevelopment is likely to be abnormally high, it is seldom economical to undertake like for like development. To make it worthwhile to demolish one house and build another, for example the value of the new house must be sufficient to cover the value of the old house and its cost of demolition, as well as the construction costs of the new house. Thus for renewal/ development to take place the site value of the new development must exceed the value of the existing land and buildings and this is usually only possible where rebuilding can take place at a higher density or for a more valuable use.
Shifts in land use can take place on existing development, but the succession process ordinarily involves some redevelopment of real estate base. Where forest are cleared for farming for example, farms converted into building sites, single farm residence converted into apartments or existing structures are torn down to room for newer development; redevelopment take place. Redevelopment decisions however are responsive to market pressures. In so far as several operators are able to undertake redevelopment projects, the market prices on individual properties are often hiked up to justify by the growing estimate of their value for conversion to new uses. The rational for redevelopment may be expectations concerning future costs returns on investment decisions and can be viewed in terms of revenue and profit maximisation. However it can be broadened to include various psychic returns, personal satisfactions and social values. An individual who remodels his house justifies redevelopment more in terms of added family comfort and satisfaction than of the net income of the property in the market. Our cities are continually redeveloping streets, water and sewerage systems and other additional facilities within the avowed interest of increasing the social utility of these resources. Most slum clearance, urban and urban renewal projects also are undertaken to promote social, psychic and economic goals.
