Romeo Gestioni - The Insulae Model

The Insulae Model

The Insulae Model

Romeo Gestioni has managed to diversify its skills and management techniques, developing new operating principles for the restoration, management and promotion of the assets managed and, today more so than ever before, embracing a new strategy best defined as urban facility management.

The ability to operate with engineering techniques, but also by proposing new administrative processes, cast Romeo Gestioni as a highly innovative company.

In this sense, the Insulae Model testifies to the company’s revolutionary design and planning skills, allowing to reconcile the needs of local governments—with less and less resources available—, the citizens-users of a number of urban areas that deal with poor services and increasing costs, and businesses, which can seize the professional and operational opportunities offered by this situation.

Research on new potential administrative models—no longer one-size-fits-all and routine-driven, but rather project-specific and motivation-driven—opens up an opportunity to overcome red tape and re-launch employment, for example when a local government has to restructure its workforce as required by the spending review.

THE PROTOTYPE: INTEGRATED MANAGEMENT AND PROMOTION OF THE AREA FOR AN EVOLVING CITY"

The INSULA Concept

"BORGO ANTICA DOGANA", a uniform urban district of 45 thousand square metres located in a strategic area of the city.

Highlights (2012):

  • Approximately 2,500 "residents" (either living or working in the area)
  • Daily commuters and/or users: over 10 thousand people per day
  • Current value of the area, conservatively estimated based on the data provided by the Real Estate Market Observatory (OMI—Osservatorio del Mercato Immobiliare) of the Italian Agency for the Territory: 388 million Euro
  • Conservative estimate of the value of the area using the same parameters after urban restoration work: approximately 577 million Euro, with a theoretical increase of approximately 48%
  • Total annual taxes and duties levied on the INSULA in exchange for the poor services provided to the local community: approximately 3 million Euro
  • Total amount of restoration work and urban furniture: approximately 5 million Euro

Fast part of the intervention (one year)

  ACTIONS

  • Swift response time
  • Lower building restoration costs
  • Faster authorisations
  • Lower bureaucratic-administrative burden
  • Shorter execution time

  EFFECTS

  • Appreciation of real estate assets, including decaying buildings
  • Conversion of semi-unused spaces (warehouses, garages, empty offices ) into commercial businesses (stores, bars, restaurants...), increasing accommodation capacity and flows in the area
  • Increase in municipal tax revenues

Slow part of the intervention (three/five years)

  ACTIONS

  • Investing in real estate assets
  • Not only restructuring, but also management and promotion activities
  • Improving the buildings’ energy rating
  • Reducing energy consumption
  • Using alternative energy sources
  • Curbing overheads

  EFFECTS

  • Involvement of the local community
  • Involvement of several companies, stimulating the economy
  • Higher tax revenues for the Local Government
  • Lower costs incurred by the Local Government
  • Higher quality of services at the same cost
  • Quality of life and satisfaction of the citizens-users

How to implement the model?

  ACTIONS

  • Set up a Control Room
  • Enter into a medium-term management agreement with private companies for the provision of existing as well as additional services pursuant to the development project
  • Involve the public administration in the project, rationalising and optimising the use of resources
  • Plan the maintenance, conservation and development of the assets managed

  EFFECTS

  • Optimized use of the resources that the area “produces” (tax revenues)
  • Modernization and promotion of an INSULA area with increasingly positive economic and financial results
  • Economic self-sustainability of restoration, management and promotion processes as well as of the services provided to the local community
  • Job creation
  • Economic stimulus
  • Model for stakeholders
  • Modernisation of the municipal administrative organisation

Economic self-sustainability and resources

  • Classification of expenses by responsibility centre, allowing to allocate part of the municipal resources to the area that produces them
  • Incentives for companies to invest (and for the banks to finance them), because the economic return on a collective and certified result is certain
  • Activating European funding for energy innovation plans in the spirit of the Kyoto protocol
    • For example, the EU Covenant of Mayors, that guarantees European funds for investments in energy savings and to curb emissions into the atmosphere—up to 42 million Euro for an area of at least 100 thousand residents
    • Thus, an insula town of 5 hectares is likely to host 5000 people. Therefore, by creating at least 20 insulae, it would be possible to obtain 42 million Euro in EU funds

Conclusions

  • The INSULAE Model allows to carry out and manage major public works with private-sector expertise
  • It allows small-, medium- and large-scale urban planning
  • Long-term Keynesian stimulus (even beyond ten years, considering maintenance) instead of the short-term benefit of large public works (motorways)
  • Positive repercussions on commercial businesses and services
  • Sustainable economic regeneration with no added costs
  • A new model of cohabitation and social development
  • Modernization of the Public Administration