The south of the country of Luxembourg has a strong industrial heritage. During the 19th and early 20th centuries, the area was home to a large steel manufacturing sector. Due to direct access to iron ore, the steel industry predominantly settled nearby. Steel mills were built next to existing settlements, attracting workers from Luxembourg and abroad, gradually transforming villages into cities.

The steel crisis in the 1970’s prompted an economic re-orientation. The decline of the steel industry and its production sites led to a period of difficult economic transition. Nevertheless, the vacant steel production sites in direct proximity to city centres would prove valuable for the future.

To support alternative economic sectors and to address high demand for offices and housing, these brownfield sites are steadily being converted into urban districts. The ‘Belval’ reconversion project is the first development of its kind in Luxembourg, converting the former steel production site into a new urban district.

Rationale for action

The ‘Belval’ site is shared between the city of ‘Esch-sur-Alzette’ and the municipality of ‘Sanem’ in the South of the country. In 1997 steel production finished, leaving a 120 hectare idle industrial site next to the two centres that risked being left vacant. Developing the site would provide potential for decentralisation, an objective mentioned in the national planning strategies.

The ‘Belval’ site before closing of the steel mill in 1991. The large production halls in the background are still operational to this date in 2021. Source: Les Meloures, Wikipedia.

Objective

This triggered the development of ‘Belval’ from a brownfield site into a new urban district. The site should provide office space and housing attracting businesses, inhabitants and employees, supporting and strengthening the economy of the region. Developing ‘Belval’ should also support the government’s decentralisation policies, developing a second growth pole in addition to Luxembourg City, reinforcing a more balanced territorial development.

Initial plans for developing the steel mill into a new urban district were made a year prior to its closure. Accommodating businesses, new inhabitants, a university and a concert hall, the area was planned as an urban and independent district of the municipality of Sanem and the city of Esch-sur-Alzette. The masterplan puts special emphasis on the creation of knowledge economy businesses, encouraging specialisation in knowledge-intensive sectors. Sustaining and valorising the area’s architectural heritage should create a special identity for the district and a reminder of the industrial past.

Panoramic view of the Belval district in 2019 with ongoing works. Source: Zinneke, Wikipedia.

Time frame

First efforts to develop the area into a new urban district started in 1996. The masterplan was adopted in 2002. Development is still ongoing, with about 50% of the buildings completed by 2019. Development should be finalised by 2028.

Key players

Development was entrusted to two intermediaries, that were specifically founded for this purpose. The first and primary intermediary, AGORA, is a public-private organisation encompassing the steel company (the former landowner) and the state. The organisation is in charge of developing and commercialising the new district and benefits are shared equally between the two members. The second intermediary is the ‘Fonds Belval’ (Belval Fund), implementing the public investment programme. So, the public institution is in charge of building, approving and managing the buildings as well as public infrastructure such as the university complex and the museum.

Many public bodies were involved in the process with ministries and municipalities in supervisory and consultancy boards, the national railway for traffic planning and the municipalities having their final say on development through land-use plans and building permits. Private investors are also implementing non-public buildings in ‘Belval’.

‘Place de l’Académie’ in Belval. Source: Zinneke, Wikipedia.

Implementation steps and processes

There are several important implementation steps for the development. A key one was the foundation of an ‘ERSID’ (grouping of economic interest) in 1996 as an intermediate institution. It launched a pre-study, investigating the potential to convert the brownfield site into a university pole. Steel production in ‘Belval’ was halted in 1997 and the land was transferred for a symbolic price of EUR 1 from the steel company to the state.  

Another key step was the foundation in 2000 of AGORA to implement the project. Developing public installations, as detailed in the masterplan adopted in 2002 was ‘Fonds Belval’, founded the same year.

Construction started in 2004 and the first buildings were completed soon after (e.g. a concert hall ‘Rockhal’ in 2005, first office buildings in 2006 and a shopping mall in 2008). ‘Belval’ welcomed the first residents in 2009. The university and research institutes opened their doors in 2015. Today, the development of ‘Belval’ is not yet finalised with less than half of the planned buildings still to be realised.

Required resources

As ‘Belval’ is still under construction and far from being finalised, it is not possible to assess the resources required for the development. ‘Fonds Belval’ indicated in its annual balance sheet of 2017 a budget of EUR 614 million for construction and related services.

Results

Today, ‘Belval’ is an urban district, hosting many important national functions. The university, research institutions (e.g. Luxembourg Institute of Socio-Economic Research), banks and large service providers are all in the new district. A total of 180 business institutions, retailers and restaurants have opened providing labour for 5,000 employees. The site also hosts amenities such as a concert hall, a shopping centre and a museum, as well as 2,400 permanent residents.

‘Belval’ is the economic motor of the south, highlighting the economic rationale for developing the district. With more employees and residents to be welcomed in future, its economic role is expected to increase.

The area features modern architecture, integrating innovative building forms and techniques. Meanwhile, the industrial heritage was preserved in the form of two high furnaces and their related infrastructure that function today as a museum. Despite the high density of offices and housing, ‘Belval’ has large public spaces, squares and pedestrian zones.

View of the University with the former high furnace in the background. Source: © Michel Brumat / Foersom sàrl 2015

Experiences, success factors, risks

The specifics of brownfield developments mean many non-standard solutions have been required. ‘How to deal with soil contamination?’, ‘How to integrate industrial heritage into the urban development concept?’, ‘How to build an urban area from scratch and how to make the district function with far more employees than inhabitants?’ and ‘How to make the retail sector function with a small number of potential customers?’ are just some questions that had to be addressed during development.

Maybe because of the uncertainties and the steep learning curve for planners and decision-makers, realisation of ‘Belval’ continues. If everything goes as planned, the district will be finalised after more than three decades, having stretched across the entire careers of some decision makers and planners.

The planning process is very often taken as a prime example for a top-down process, overruling local citizens and decision-makers. This perception is rooted in the limited involvement of potential citizens and local authorities in the conception and realisation of the site. The masterplan also featured little flexibility to address problems and issues arising during its realisation.

Successful integration of the industrial heritage into the urban design. Source: Zinneke, Wikipedia.

Conclusions

In 2021, 25 years after the brownfield conversion was launched, the development has not been finalised. With about ten years of development to come, it is too early to draw final conclusions on whether the development has worked or not.

Despite criticism in recent years, views on ‘Belval’ have started to change. The relevance of ‘Belval’ for economic development of the south, the large number of businesses and the urban design of the existing district are positive. Slowly but steadily, ‘Belval’ fulfils the purpose for which it was designed, as the new centre of the knowledge economy in Luxembourg.

As a result, the name ‘Belval’ is known by individuals in and outside of Luxembourg. The sheer size, the many issues planners had to tackle and the fact that ‘Belval’ is the first reconversion project in Luxembourg have increased the projects’ visibility. The area is also a testbed for future developments of brownfield sites in the south of the country.

Contact

Ms Daisy Wagner, Chief planner of the city of Esch-sur-Alzette: daisy.wagner@esch.lu

References

AGORA, 2019: Website about the Belval project: https://www.belval.lu/en/

AGORA, 2019: Website of the association: https://www.agora.lu/en/

Fonds Belval, 2019: Website of the fund: https://www.fonds-belval.lu/

Nonnewisen is a development in Esch-sur-Alzette, the second biggest city of Luxembourg, in the South of the country. The development covers 30 hectares of previously agricultural and horticultural land at the northern outskirts of the municipality.

Rationale for action

In Esch-sur-Alzette, prices for housing increased continuously in recent years following the national trend. This has been boosted by the large-scale development of Belval, a former steel-production site close-by, now converted into a new city district. To address the shortage of affordable housing, the municipality of Esch-sur-Alzette in cooperation with Fonds du Logement (the national housing fund) initiated conversion of the site from agricultural land and allotments into a residential area.

Objective

Nonnewisen is a new district, integrated into the existing urban fabric. When finalised, it will provide around 900 highly modern housing units, hosting 2 300 to 2 500 inhabitants. Providing a high standard of living in the new district is one of the main objectives. Because the district is part of the existing urban fabric of the city. A high population density for the new district is envisaged. To ensure a high quality of life, emphasis was put on high quality green urban areas as recreational sites between and within buildings.

Additionally, the functional mix between living, working, recreation and consuming provides a high level of service for residents. There will be a new school for 300 to 320 students, a day care centre and a central space with shops. Blending different functions ensures that services will be easily accessible by soft means of transport and the site will also be a centre of attraction for the older, surrounding districts.

Another priority was to keep unit costs low. This was achieved by constructing high density buildings, saving material and effort. Economies of scale reduce construction costs. The municipality together with Fonds du Logement allocate residential units directly, excluding real estate agencies, which makes it possible to determine prices independently of market influences.

Timeframe

The project is being developed since 2003. Development of the district is still ongoing in 2021.

Key players

Fonds du Logement is in charge for creating a third and the Municipality of Esch-sur-Alzette is in charge of creating two thirds of the planned accommodation. A large number of planners and architects, private as well as public land land owners are also involved.

Implementation steps and processes

In 2003, the first call for proposals for an urban concept was launched, which was awarded to a Dutch firm. A key criterion was that the new area and buildings integrate well with the surrounding urban fabric. Building the new area following the state of the art construction techniques was equally important as environmental protection in the design of the concept.

For the implementation, the terrain was acquired. Around 20 hectares were already owned by the municipality of Esch-sur-Alzette and a small piece of land belonged to the state. The rest is being bought piece-by-piece from the private owners. Even though development has started in some areas, negotiations with owners of other areas are still ongoing. In 2007, construction of the first units started and in 2011 the first part with 17 apartments and 23 single-family houses was inaugurated by Fonds du Logement. In 2012, another 25 single-family houses, 4 double family-houses and 42 student residences were finalised. In 2015, the third phase provided 32 single-family houses, 24 apartments and ~500 m2 of commercial space. In 2017, 8 commercial spaces, 40 more single-family homes and 75 apartments have been completed.

Buyers of subsidised units provided by Fonds du Logement need to be eligible for a housing construction bonus from the state. This is linked to social criteria such as a below-average household income. Under this, 130m2 of subsidised housing costs around EUR 444 000, or some EUR 1 000 per m2 below the average price in Luxembourg in 2016. Such buyers can also access other financial support. Non-subsidised units can be purchased by anyone and 130 m2 of non-subsidised housing costs around EUR 472 000.

Units can only be bought for a term of 99 years. This is through heredity leasehold that costs around EUR 50 per month. People need to live at least 20 years in the units before they can sell their property again and Fonds du Logement has unconditional pre-emption right. Units sold by the municipality (2/3 of the total units built) can be purchased for a lower price. They are sold without heredity leasehold and thus do not include a usage restriction on 99 years.

Type of wooden single-family houses in the new district. Source: Fonds du Logement, 2020.

Required resources

The development of the new district is organised in stages. The project is not yet completed so total costs are still unknown. As an example, the price for the third phase (32 single-family houses, 24 apartments and ~500 m2 of commercial space) was EUR 17.5 million.

Results

The new district offers residents an attractive environment with a high quality of life. It borders many public green spaces and is close to the city centre of Esch-sur-Alzette. The new district is well connected to surrounding districts as new infrastructure has been created within and towards Nonnewisen and so far the mix of functions promises to be successful.

Nonnewisen development plan ‘urban gardens’. Source: City of Esch-sur-Alzette, Fonds du Logement, 2003.

Experiences, success factors, risk factors

The development shows how an urban environment can be shaped to provide liveable and affordable housing. All proposals submitted in 2003 under the limited competition procedure were in line with the primary requirements of the public institutions that have triggered the development (the municipality and Fonds du Logement). A cooperative competition process permitted the authorities and tenderers to find common solutions to identified problems. During the planning and implementation of the project, the municipality worked closely together with the Fonds du Logement. The stepwise approach of the developments ensures that the construction of the new district does not overburden the resources at hand.

Nonnewisen is also an innovative design concept. Issues, resulting from high density were structurally addressed in the planning process by providing areas where residents can meet and where they remain alone.

Conclusions

Nonnewisen illustrates how innovative urban forms of housing can look in the future and that high densities are no rejection to a high standard of living. A pre-condition for the development of the site was the ownership structure. Most of the area needed for the development of Nonnewisen is public property and only some areas have to be purchased from private owners. Considering future adaptions of the structure of the district, the recreational green areas are important in order to sustain a quality of life in Nonnewisen.

Contact

Ms Daisy Wagner, chief planner of the city of Esch-sur-Alzette: Daisy.Wagner@villeesch.lu