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Land Readjustment
System (LRS)




      THE STUDY ON CITY MASTER PLAN
      AND URBAN DEVELOPMENT PROGRAM OF
      ULAANBAATAR CITY IN MONGOLIA
                                         1
3 Principles of Urban
Development Projects

1. Securement of Assets Holders’ Property
   Values    
2. Community Participation       
3. Promotion of Public Benefits →   to be
   assured through an Urban Planning
   Framework      
                                  2
Areas Suitable for LRS
 Narrow roads and shortage of
  infrastructures
 Susceptible for floods and disasters

 Not hygienic due to poor solid waste
  management

 Environmentally poor without open space,
  green and parks for
                                     3
Common Principles of
LRS and Urban
Redevelopment System

 Participation of all land owners and
  leaseholders
 Equivalent Exchange of assets values
  of “before” and “after”    
 Improvement/development of public
  facilities and utilities    
                                4
まちづくりの方
   自治体 などが土地の所 法
    有者などから意見を聞き
  ,一緒にまちづくりの計
  画をつくります。
 その計画に沿って,一定
  の区域を定め,土地の所
  有者から公平に少しずつ
  土地を提供してもらい,
  道路や公園,宅地などを
  総合的に整備します。
 道路事業などのように,
  一つの施設を買収するこ
  とによって整備する方法
  と異なり,面的な広がり
  を持った広い地域にわた
  って一括して整備ができ
                   5
  ます。
6 Benefits from
 LRS
1. Deliberate Supply of High Quality Housing
   areas
2. Improvement of Livable Environment
3. Being Robust against Disasters
4. Intensive and Efficient Land Use
5. Raise of Asset Values
6. Readjustment of Address Indications


                                      6
1. Supply of High Quality
  Housing areas
  Environmentally sound urban housing
   areas can be provided…




                                7
2. Improvement of Livable
    Environment
  Roads, Streets, Drainage systems and Parks can be
   developed…
  Urban Utilities can be developed, too…
  Land shapes can be orderly arranged…
  Parks and play-grounds can be properly provided…




                                           8
3. Being Robust against
   Natural Disasters
 Housing areas are robust against disasters such as
  flooding, fires and earthquake…
 Emergent rescue activities can easily approach to the
  area…
 Preparedness of disaster management can be improved at
  community level…




                                            9
4. Intensive and Efficient
   Land Use
  Land areas can
   be deliberately
   and efficiently
   utilized, because
   the land shapes
   can be orderly
   arranged….




                       10
5. Raise of Asset Values

 The land value after the LRS project can
  usually be increased because of
  improvement of roads and infrastructure.
 Eventually, land owner’s asset value will
  be raised after the project, even his/her
  land area is reduced by payment of
  contributions.



                                   11
6. Readjustment of
   Address Indications
 The postal address system can be
  improved because address indications
  will be orderly arranged…
 Community activities can be
  encouraged through the
  implementation of the project



                                12
Mechanism of LRS
Before                                      After




※ Contributed Land is the land to be sold to generate the money for the
  construction cost.
※ Land owner’s land area shall be reduced, but its asset values will
  normally be increased after the LRS project.            13
Before




After




         14
Who can be the LRS
project proponent?
1.   Individuals
2.   Land Readjustment “Association”
3.   Land Readjustment “Company”
                           “
4.   Local Government
5.   Ministry (Central Government)
6.   Other public entities designated by the
     law.
                                     15
How to procure the
fund for the
construction?
 1. By selling out contributed land areas
    at the housing market
 2. Partially from government subsidies
    for development of public facilities




                                  16
A Basic Mechanism of
LRS
  Total Asset Value (TAV) after LRS
  Total Asset Value (TAV) after LRS
   > TAV before LRS + Project Cost
   > TAV before LRS + Project Cost
                                 Total Asset Value
                                 after the Project

  Total Asset Value                          Project Cost
  before the Project



                 Value of Land                Value of Land
                 owners &                     owners &
                 Leaseholders                 Leaseholders




                                                     17
Process of LRS Project
 Implemented by a Local Government


                              I: Research & Investigation


                                     II: Planning


                           III: Implementation of the Project


                          IV: Final Settlement of the Project

                                                 18
I: Research &
Investigation
  All stakeholders are invited to attend a
   public hearing meeting on the LRS Project
  Detailed explanations on the LRS project
   should be given to all stakeholders,
   including:
    Objectives and development concepts of the
     Project;
    Designated area to be implemented;
    Methods of land location and geographical
     survey & geological survey

                                        19
II. Planning
II-1. Preparation of a LRS Project
II-1. Preparation of a LRS Project
      Implementation Plan
      Implementation Plan
1. ”LRS Project Implementation Plan” is established,
   based on a participatory approach.
2. The Plan should be made available for “Public
   Inspection” for 2 weeks.
3. Should comments be raised by the general public,
   those should be clarified at the Urban Planning
   Committee.
4. The LRS Implementation Plan should be finalized,
   being reflected by the instructions by the Urban
   Planning Committee.                         20
II-2. Surveys & Studies to be conducted
II-2. Surveys & Studies to be conducted


   Land Measurement Surveys
   Buildings-related Surveys
   (Building-use, age, structure and other attributes )
   Compilation of Legal Registrations
   ( land, buildings, mortgage/security, etc.)




                                                 21
II-3. Establishment of the “LR Project
II-3. Establishment of the “LR Project
      Deliberation Council”
      Deliberation Council”

  Board members of the LR Project
   Deliberation Council shall be elected from
   all land owners and/or leaseholders.

  The LR Project Deliberation Council is
   given decision-making power for:
    Designation of temporary re-plotting scheme
    Clarification of public comments
    Selection of “Asset Value Assessors” for land
     and buildings

                                           22
II-4. Preparation of a ”Land Re-plotting
II-4. Preparation of a ”Land Re-plotting
      Plan”
      Plan”

   Based on the land surveys and the
    approved implementation plan, a “land re-
    plotting plan” should be prepared.
   The land re-plotting plan indicates a new
    plotting structure of all pieces of land
    where the present land will be re-shaped.


                                        23
III: Implementation of
     the Project
III-1. Preparation of a draft of ”Land
III-1. Preparation of a draft of ”Land
       Re-plotting Plan”
       Re-plotting Plan”


  A land re-plotting plan is drafted, based
   on suggestions and instructions raised by
   the LR Project Deliberation Council.

                                   24
III-2. Final Resolution of re-plotting
III-2. Final Resolution of re-plotting
       Plan
       Plan

  Based on instructions and advice of the LR
   Project Deliberation Council, a detailed
   financial plan shall be made, including
   liquidation accounting.
  Should no agreement be made among land
   owners/leaseholders, the Council shall
   arbitrate to reach an agreement.
  The final re-plotting plan shall publicly be
   announced and legally designated.
                                         25
III-3. Relocation and New Construction
III-3. Relocation and New Construction

  The existing buildings shall be moved or
   relocated onto newly plotted land area.
  Roads, urban utilities such as water
   supply, drainage and sewerage system,
   park are constructed.

 Notes:   Objectives for compensation are: 1) buildings; 2) structures,
          3) trees, 4) movable assets such as business rights, etc.



                                                                26
IV: Final Settlement of
    the Project
IV-1. New Arrangement of Postal
IV-1. New Arrangement of Postal
      Codes and Address Indications
      Codes and Address Indications
   Along with readjusted land plots, a new postal
    codes and address indications shall be
    arranged.
   The new address system shall be effective and
    publicly announced from one day after the re-
    plotting was undertaken.

                                       27
IV-2. Financial Settlement of the
IV-2. Financial Settlement of the
      Project
      Project

   Payment for liquidation accounts shall be
    undertaken to make a balance of the
    exchanges of land between “before” and
    “after”.
   Liquidation is made by payment of
    money to fulfill a gap between the
    before- and after-land values.

                                   28
IV-2. Legal Registration of New
IV-2. Legal Registration of New
      Property Assets
      Property Assets


  Legal registration of new land and
   buildings shall be undertaken by the
   project executer (proponent).




                                    29
Critical Elements for
Success of LRS Project

1.
1. Consensus of Stakeholders
    Consensus of Stakeholders
2.
2. Existence of the sound real estate
    Existence of the sound real estate
   market (demand-driven market is
    market (demand-driven market is
   favorable)
    favorable)
3. Positive perspective on procurement of
3. Positive perspective on procurement of
   funds sufficient for the project
    funds sufficient for the project

                                  30
Indispensable
Institutional and Legal
Elements
1. Land Value Assessment System
1. Land Value Assessment System
2. Immovable Assets Registration System
2. Immovable Assets Registration System
   (for land and building)
    (for land and building)
3. Governmental budgetary system to
3. Governmental budgetary system to
   facilitate development of public facilities
    facilitate development of public facilities
   under a committed “Urban Master
    under a committed “Urban Master
   Plan”
    Plan”

                                      31
Thank you
…



        32

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Land readjustment _e_

  • 1. Land Readjustment System (LRS) THE STUDY ON CITY MASTER PLAN AND URBAN DEVELOPMENT PROGRAM OF ULAANBAATAR CITY IN MONGOLIA 1
  • 2. 3 Principles of Urban Development Projects 1. Securement of Assets Holders’ Property Values     2. Community Participation        3. Promotion of Public Benefits →   to be assured through an Urban Planning Framework       2
  • 3. Areas Suitable for LRS  Narrow roads and shortage of infrastructures  Susceptible for floods and disasters  Not hygienic due to poor solid waste management  Environmentally poor without open space, green and parks for 3
  • 4. Common Principles of LRS and Urban Redevelopment System  Participation of all land owners and leaseholders  Equivalent Exchange of assets values of “before” and “after”      Improvement/development of public facilities and utilities     4
  • 5. まちづくりの方  自治体 などが土地の所 法 有者などから意見を聞き ,一緒にまちづくりの計 画をつくります。  その計画に沿って,一定 の区域を定め,土地の所 有者から公平に少しずつ 土地を提供してもらい, 道路や公園,宅地などを 総合的に整備します。  道路事業などのように, 一つの施設を買収するこ とによって整備する方法 と異なり,面的な広がり を持った広い地域にわた って一括して整備ができ 5 ます。
  • 6. 6 Benefits from LRS 1. Deliberate Supply of High Quality Housing areas 2. Improvement of Livable Environment 3. Being Robust against Disasters 4. Intensive and Efficient Land Use 5. Raise of Asset Values 6. Readjustment of Address Indications 6
  • 7. 1. Supply of High Quality Housing areas  Environmentally sound urban housing areas can be provided… 7
  • 8. 2. Improvement of Livable Environment  Roads, Streets, Drainage systems and Parks can be developed…  Urban Utilities can be developed, too…  Land shapes can be orderly arranged…  Parks and play-grounds can be properly provided… 8
  • 9. 3. Being Robust against Natural Disasters  Housing areas are robust against disasters such as flooding, fires and earthquake…  Emergent rescue activities can easily approach to the area…  Preparedness of disaster management can be improved at community level… 9
  • 10. 4. Intensive and Efficient Land Use  Land areas can be deliberately and efficiently utilized, because the land shapes can be orderly arranged…. 10
  • 11. 5. Raise of Asset Values  The land value after the LRS project can usually be increased because of improvement of roads and infrastructure.  Eventually, land owner’s asset value will be raised after the project, even his/her land area is reduced by payment of contributions. 11
  • 12. 6. Readjustment of Address Indications  The postal address system can be improved because address indications will be orderly arranged…  Community activities can be encouraged through the implementation of the project 12
  • 13. Mechanism of LRS Before After ※ Contributed Land is the land to be sold to generate the money for the construction cost. ※ Land owner’s land area shall be reduced, but its asset values will normally be increased after the LRS project. 13
  • 15. Who can be the LRS project proponent? 1. Individuals 2. Land Readjustment “Association” 3. Land Readjustment “Company” “ 4. Local Government 5. Ministry (Central Government) 6. Other public entities designated by the law. 15
  • 16. How to procure the fund for the construction? 1. By selling out contributed land areas at the housing market 2. Partially from government subsidies for development of public facilities 16
  • 17. A Basic Mechanism of LRS Total Asset Value (TAV) after LRS Total Asset Value (TAV) after LRS > TAV before LRS + Project Cost > TAV before LRS + Project Cost Total Asset Value after the Project Total Asset Value Project Cost before the Project Value of Land Value of Land owners & owners & Leaseholders Leaseholders 17
  • 18. Process of LRS Project Implemented by a Local Government I: Research & Investigation II: Planning III: Implementation of the Project IV: Final Settlement of the Project 18
  • 19. I: Research & Investigation  All stakeholders are invited to attend a public hearing meeting on the LRS Project  Detailed explanations on the LRS project should be given to all stakeholders, including:  Objectives and development concepts of the Project;  Designated area to be implemented;  Methods of land location and geographical survey & geological survey 19
  • 20. II. Planning II-1. Preparation of a LRS Project II-1. Preparation of a LRS Project Implementation Plan Implementation Plan 1. ”LRS Project Implementation Plan” is established, based on a participatory approach. 2. The Plan should be made available for “Public Inspection” for 2 weeks. 3. Should comments be raised by the general public, those should be clarified at the Urban Planning Committee. 4. The LRS Implementation Plan should be finalized, being reflected by the instructions by the Urban Planning Committee. 20
  • 21. II-2. Surveys & Studies to be conducted II-2. Surveys & Studies to be conducted  Land Measurement Surveys  Buildings-related Surveys (Building-use, age, structure and other attributes )  Compilation of Legal Registrations ( land, buildings, mortgage/security, etc.) 21
  • 22. II-3. Establishment of the “LR Project II-3. Establishment of the “LR Project Deliberation Council” Deliberation Council”  Board members of the LR Project Deliberation Council shall be elected from all land owners and/or leaseholders.  The LR Project Deliberation Council is given decision-making power for:  Designation of temporary re-plotting scheme  Clarification of public comments  Selection of “Asset Value Assessors” for land and buildings 22
  • 23. II-4. Preparation of a ”Land Re-plotting II-4. Preparation of a ”Land Re-plotting Plan” Plan”  Based on the land surveys and the approved implementation plan, a “land re- plotting plan” should be prepared.  The land re-plotting plan indicates a new plotting structure of all pieces of land where the present land will be re-shaped. 23
  • 24. III: Implementation of the Project III-1. Preparation of a draft of ”Land III-1. Preparation of a draft of ”Land Re-plotting Plan” Re-plotting Plan”  A land re-plotting plan is drafted, based on suggestions and instructions raised by the LR Project Deliberation Council. 24
  • 25. III-2. Final Resolution of re-plotting III-2. Final Resolution of re-plotting Plan Plan  Based on instructions and advice of the LR Project Deliberation Council, a detailed financial plan shall be made, including liquidation accounting.  Should no agreement be made among land owners/leaseholders, the Council shall arbitrate to reach an agreement.  The final re-plotting plan shall publicly be announced and legally designated. 25
  • 26. III-3. Relocation and New Construction III-3. Relocation and New Construction  The existing buildings shall be moved or relocated onto newly plotted land area.  Roads, urban utilities such as water supply, drainage and sewerage system, park are constructed. Notes: Objectives for compensation are: 1) buildings; 2) structures, 3) trees, 4) movable assets such as business rights, etc. 26
  • 27. IV: Final Settlement of the Project IV-1. New Arrangement of Postal IV-1. New Arrangement of Postal Codes and Address Indications Codes and Address Indications  Along with readjusted land plots, a new postal codes and address indications shall be arranged.  The new address system shall be effective and publicly announced from one day after the re- plotting was undertaken. 27
  • 28. IV-2. Financial Settlement of the IV-2. Financial Settlement of the Project Project  Payment for liquidation accounts shall be undertaken to make a balance of the exchanges of land between “before” and “after”.  Liquidation is made by payment of money to fulfill a gap between the before- and after-land values. 28
  • 29. IV-2. Legal Registration of New IV-2. Legal Registration of New Property Assets Property Assets  Legal registration of new land and buildings shall be undertaken by the project executer (proponent). 29
  • 30. Critical Elements for Success of LRS Project 1. 1. Consensus of Stakeholders Consensus of Stakeholders 2. 2. Existence of the sound real estate Existence of the sound real estate market (demand-driven market is market (demand-driven market is favorable) favorable) 3. Positive perspective on procurement of 3. Positive perspective on procurement of funds sufficient for the project funds sufficient for the project 30
  • 31. Indispensable Institutional and Legal Elements 1. Land Value Assessment System 1. Land Value Assessment System 2. Immovable Assets Registration System 2. Immovable Assets Registration System (for land and building) (for land and building) 3. Governmental budgetary system to 3. Governmental budgetary system to facilitate development of public facilities facilitate development of public facilities under a committed “Urban Master under a committed “Urban Master Plan” Plan” 31

Notas del editor

  1. ・事業の名称 :豊中市少路特定土地区画整理事業    ・施行面積   :約22.3ha    ・事業施行期間:平成3年度~平成16年
  2. 事業の名称  :高槻市阪急上牧駅北特定土地区画整理事業    ・施行面積   :約11.7ha                     ・事業施行期間:平成10年度~平成18年度(予定)
  3. 地区内の土地所有者等が、土地を少しずつ提供(減歩)し、道路・公園などの公共用地や保留地に充てます。各個人の土地は、地形や形状が改善されて再配置(換地)されます。この結果、右図の様に道路・公園等の公共施設が整備されます。また、個人の土地は区画が整理されるとともに、無接道の土地も接道することとなり、土地活用が図りやすくなります。
  4. 個 人 ・土地の所有者又は借地権者は,自らの土地について,1人で,又は数人共同して施行することができます。 ・土地の所有者又は借地権者の同意を得たものは,これらの者に代わって施行することができます。(同意施行) ・農住組合  農住組合が土地区画整理事業を行う場合には,数人共同して施行する個人施行者とみなされます。 土地区画整理組合 ・土地の所有者又は借地権者が, 7 人以上共同して設立する土地区画整理組合は,土地の所有者又は借地権者のそれぞれ2/3以上の同意を得た区域内の土地について施行することができます。 区画整理会社 ・土地の所有者又は借地権者を株主又は社員とし,土地区画整理法第3条3項の要件に該当する区画整理会社は,出資者及び会社が宅地・借地の2/3以上を有している区域内の土地について施行することができます。 地方公共団体 ・市町村 ・都道府県 (都市計画で施行区域と定められた区域内において,都市計画事業として施行することができます。)国土交通大臣・災害の発生など早急に施行する必要がある場合などに行われます。 機構・公社 ・独立行政法人都市再生機構 ・地方住宅供給公社 (都市計画で施行区域と定められた宅域内において,都市計画事業として施行することができます。)
  5. 組合の場合は、総代会または総会