Assessing the Public Peri-Urban Agricultural Park as a Tool for the Sustainable Planning of Peri-Urban Areas: The Case Study of Prato
Abstract
:1. Introduction
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- Integration of economic and production data through cost–volume–profit analysis (CVPA) [26,27,28,29,30] that includes (i) break-even analysis (BEA) [31,32,33], which enables the estimation of break-even conditions in a production process; (ii) Contribution Margin Analysis (CMA) [34], which, in a production process, enables the estimation of the financial sums remaining after dealing with fixed costs for variable and extra-profit costs; and (iii) Operating Leverage Analysis (OLA) [35], which enables the assessment of the riskiness of a production process.
2. Setting the Key Concept for This Study: The Literature Review of the Agricultural Park
- Formally established bodies according to a Public–Private Partnerships (PPP) model as the subject of governance for the peri-urban farmland areas;
- The setting of “rural–urban intermunicipal projects” that, drawing on the collaboration of different municipalities and stakeholders, could manage an effective integration between the various policy sectors, especially integrating urban developments, food production, and agro-ecosystem protection.
- Peri-urban farmland space and structure protection through landscape and urban planning tools;
- Pro-active measures and initiatives to economically enhance farming activities by adopting some tools of rural development and management plans.
3. Methods
3.1. Project Goals and Adopted Design Methodology
- The recovery, conservation, and enhancement of the agricultural and landscape heritage;
- Promoting proximity in sustainable and profitable peri-urban agriculture;
- Improving ecological connectivity and biodiversity the urban fabric;
- The creation of public green spaces for leisure and socialization;
- Environmental education and local community awareness promotion on sustainability and food issues.
3.2. Assessment of the Financial Feasibility
- FCa concerns any market value of the buildings/area of intervention, if owned by the project developer including notary and registration expenses;
- FCd concerns the eventual demolition of pre-existing buildings;
- FCu includes works for the area’s urbanization and for rendering it suitable;
- FCt represents the construction (technical) cost or equipping costs of public buildings and areas including agro-environmental works such as hydraulic reticulation, planting of hedges and trees, paths, etc.;
- FCe concerns the technical expenses related to the fixed costs;
- FCf is the financial charges related to the fixed costs;
- FCo is other eventual fixed costs;
- RFC is the non-repayable public funding, which among the fixed costs can be considered but as a deduction.
- VCt—construction (technical cost) of sellable buildings;
- VCe—technical expenses related to variable costs;
- VCc—concession charges;
- VCf—financial charges related to variable costs;
- VCp—ordinary promoter’s profit;
- VCu—unforeseen costs.
4. Results
4.1. The Project Context and Components
4.1.1. The Public Agricultural Park Area and Its Local Context
4.1.2. Study Area Features Long-Lasting Heritage Elements Analysis and Evaluation
4.2. Design Description: Decisions and Solutions
- The redevelopment of agricultural areas and the promotion of sustainable agricultural practices through the introduction of crops with low environmental impact, the diversification of production, and the creation of food local supply chains;
- Relating to the above, the enhancement of current farming activity carried out on the site and the existing farm as a key stewardship actor to unfold and manage the park project with a multi-agent, active planning and design solution;
- The creation of a network of green spaces open to the public and green infrastructure, including small spots parks, urban gardening (e.g., community-supported agriculture), rest areas, along with cycling and walking paths in order to improve ecological connectivity, easy access to agro-ecological areas, and foster sustainable mobility;
- The implementation of restoration and enhancement of cultural heritage, such as the restoration of historic rural buildings for the promotion of viable cultural proximity tourism and didactic activities;
- The creation of public spaces and services for the local community, such as play areas, urban gardens, environmental education centers, and meeting points for socialization and exchange of knowledge and skills;
- The implementation of awareness and communication actions aimed at citizens and local actors to promote community participation and involvement in the project and its activities.
4.3. Governance and Management of the Project: Involvement of Local Actors and the Park Feasibility Appraisal
4.3.1. The Key Role of Public/Private Enduring Partnership Forms
4.3.2. Conditions for Ensuring Financial Feasibility
5. Discussion
- Integration of urban and rural environments: While many traditional approaches tend to treat the city and the countryside as two separate entities, the Capezzana PAP project aims to integrate these two environments into a single coherent system. This perspective makes the best use of the resources of both contexts, creating a balance between urban development and the protection of the remaining rural environment;
- Enhancement of the area qualities: Unlike projects that focus mainly on economic or infrastructural aspects, the Capezzana PAP places great emphasis on the recovery and enhancing the “heritage” features and endowments—built elements, environmental, scenic, and cultural features of the area. This approach makes it possible to protect and promote the local heritage, improving the quality of life of residents and making the area more attractive to citizens and visitors;
- Sustainability: The project is based on principles of regenerative environmental, economic, and social sustainability. It promotes environmentally friendly agricultural practices, and “food miles 0” products, contributing to a reduction in environmental impact. In addition, through the creation of local food markets and the promotion of sustainable proximity tourism, the project can stimulate the local economy at the neighborhood scale in a fair and sustainable way;
- Community participation: The Capezzana PAP aimed to actively involve the local community in all phases of the project. This participatory approach not only ensures that the project effectively meets the needs and expectations of residents but also promotes a sense of common ownership and responsibility for the area, strengthening the bond between people and their environment, supporting their sense of belonging to the place and stewardship practices;
- Education and training: The project, particularly drawing on -and aiming to enhance- the role of an existing “neighborhood” multifunctional farm, implies a strong educational component, particularly involving schools and educational institutions. It aims to improve awareness and understanding of the relationships between urban and rural environments, the importance of sustainable agriculture, biodiversity, and mindful consumption. This focus on education can have long-term positive effects, helping to form more informed, responsible, and active citizenship;
- Innovation: The Capezzana PAP turned out as a living lab for experimentation and innovation in agriculture and the environment at the urban/rural interface. This aspect distinguishes it from many other initiatives, allowing it to test and implement new ideas and sustainable solutions that could have a significant impact locally and perhaps transfer even more broadly in similar contexts;
- Health and wellness: Promoting a diet based on local, fresh, seasonal produce, combined with access to green areas for physical and recreational activities, can have positive effects on the physical and mental health of the community. The focus on natural therapy and wellness is an added benefit over conventional approaches;
- Sustainable mobility: Restoring the historic agricultural plot crossed by slow country bike/pedestrian tracks encourages an environmentally friendly mobility mode between the neighborhood and the urban center to reduce air pollution, improve air quality, and promote a more active lifestyle;
- Resilience and adaptation: The project fosters community and local resilience to the impacts of climate change through the conservation and enhancement of biodiversity, hedgerows, and tree canopies, the implementation of sustainable agricultural practices, improving soil rainfall absorption capacity and promoting a low-carbon local development model;
- Enhancement of cultural heritage: The project enhances not only natural heritage but also cultural, traditional, and built heritage by promoting knowledge and preservation of traditional agricultural practices, old crafts, and local traditions;
- Economy: The proposed PAP model can furthermore be recognized for supporting the creation of proximity agri-food markets that foreground 0-km products. Moreover, it promotes the rediscovery of sustainable agricultural practices that, while increasing awareness and respect for the environment and biodiversity, can support the development of a local food market suitable to make viable, also in economic terms, the rising local farming initiatives. In addition, further opportunities for self-funding, albeit partial, of the agricultural park also arise from the buildings restored and used for such activities for recreational, hospitality, and teaching initiatives as the answer to an increasingly diversified wellbeing urban demand;
- Financial sustainability: This is perhaps the most critical aspect, the results derived from the BEA point to only a partial ability of the PAP to generate enough of an inducement to be self-financing through PPP; it is a work that can be defined as “cold-tight” whose realization appears more consistent with a negotiated rather than a traditional PPP program. In fact, with regard to the operational implementation of the project, the BEA results return a “restorative” building potential of significant magnitude, setting the premises for requiring the support of a public contribution (of at least 50 percent of the agricultural park’s construction costs), or, alternatively, a greater characterization as a negotiated-type PPP of the PAP. Such a model could be reached, for instance, by providing space and buildings for equestrian recreation activities (riding stables), capable of generating additional income integrating the value of the agricultural assets’ revenues. This, alongside the concession of the existing public building, can be converted to tap into the new income-generating functions of PAPs relating to an increasing urban demand of leisure activities as well as for short “experiential” tourism activities.
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
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Fixed Costs (FC) | |||||||
---|---|---|---|---|---|---|---|
FCa | Area/property value and registry costs | made available by the Municipality of Prato | |||||
FCd | Pre-existing demolition | not present | |||||
FCu | Urbanization | EUR | 916,000 | ||||
Wastewater net | lm | 800 | for EUR/lm | 100 | EUR | 80,000 | |
Rainwater net | lm | 800 | for EUR/lm | 150 | EUR | 120,000 | |
Water adduction net | lm | 800 | for EUR/lm | 70 | EUR | 56,000 | |
Public lighting | n. | 160 | for EUR/n | 750 | EUR | 120,000 | |
Parking area | m2 | 2200 | for EUR/m2 | 100 | EUR | 220,000 | |
Pedestrian–cycle paths (stabilized soil) | m2 | 16,000 | for EUR/m2 | 20 | EUR | 320,000 | |
FCt | Public building and equipping costs | EUR | 1,171,000 | ||||
Market area | m2 | 900 | for EUR/m2 | 100 | EUR | 90,000 | |
Recreational areas (picnic, dog, gym, meadows) | m2 | 17,500 | for EUR/m2 | 20 | EUR | 350,000 | |
Arable areas | m2 | 65,470 | for EUR/m2 | - | EUR | - | |
Orchard areas | plants | 240 | for EUR/plant | 400 | EUR | 96,000 | |
Olive grove areas | plants | 400 | for EUR/plant | 500 | EUR | 200,000 | |
Handling and break area | m2 | 4000 | for EUR/m2 | 50 | EUR | 200,000 | |
Vegetables garden area | m2 | 2000 | for EUR/m2 | 20 | EUR | 40,000 | |
Officinal garden | m2 | 2000 | for EUR/m2 | 30 | EUR | 60,000 | |
Wooded scrub (4.5 ha) | trees | 450 | for EUR/plant | 300 | EUR | 135,000 | |
FCe | Technical expenses | % | 6% | of | FCu + FCt | EUR | 125,000 |
FCf | Financial charges | % | 8% | of | FCu + FCt + FCe | EUR | 168,000 |
FCo | Other fixed costs | % | - | of | FCu + FCt + FCe | EUR | - |
RFC | Non-repayable public funding. | not present | |||||
FCtot | Total fixed costs | FCa + FCd + FCu + FCt + FCe + FCf + FCo − RFC | EUR | 2,380,000 | |||
Variable Costs (VC) | |||||||
FCt | Realization alienable/rentable buildings | m2 | - | EUR/m2 | 1.300 | EUR | 1200 |
FCe | Technical and general expenses (referred to as variable costs) | % | 8 | of | FCt | EUR | 96 |
FCc | Concession fees | % | 5 | of | FCt | EUR | 60 |
FCf | Financial charges (referred to as fixed costs) | % | 8 | of | FCt + FCe + FCc | EUR | 108 |
FCp | Promoter ordinary profit | % | 20 | of | FCt + FCe + FCc + FCf | EUR | 293 |
FCu | Unforeseen | % | 3 | of | FCt + FCe + FCc + FCf + FCp | EUR | 53 |
FCunit | Total variable costs | FCt + FCe + FCc + FCf + FCp + FCu | EUR | 1810 | |||
Unit Selling Prices | |||||||
Pu | Unit revenue from the sale of real estate units | from real estate market observation | EUR/m2 | 2300 |
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Fanfani, D.; Battisti, F.; Agosta, B. Assessing the Public Peri-Urban Agricultural Park as a Tool for the Sustainable Planning of Peri-Urban Areas: The Case Study of Prato. Sustainability 2024, 16, 7946. https://doi.org/10.3390/su16187946
Fanfani D, Battisti F, Agosta B. Assessing the Public Peri-Urban Agricultural Park as a Tool for the Sustainable Planning of Peri-Urban Areas: The Case Study of Prato. Sustainability. 2024; 16(18):7946. https://doi.org/10.3390/su16187946
Chicago/Turabian StyleFanfani, David, Fabrizio Battisti, and Benjamin Agosta. 2024. "Assessing the Public Peri-Urban Agricultural Park as a Tool for the Sustainable Planning of Peri-Urban Areas: The Case Study of Prato" Sustainability 16, no. 18: 7946. https://doi.org/10.3390/su16187946