The Grand Duchy of Luxembourg, at the heart of Europe, continues to gain about 2% in population every year. The South of the country, the former industrial area, is growing especially rapidly, by a quarter since 2010 and in 2021 it hosted a third of all residents. Demand for housing has increased and is one of the most rapidly increasing expenses for Luxembourg households today.

In the already urbanised South, many large-scale development projects for new districts on industrial brownfields are being realised or are in the pipeline. This impacts the urban morphology of the area. Formerly geographically separated urban districts are now connected. But how can new districts interconnect urban fabrics, let alone urban functions? Differdange, the third largest city in Luxembourg, is home to such a brownfield project, ‘Plateau du Funiculaire’.

Rationale for action

The rapid development of the steel industry in Luxembourg during the 19th and 20th centuries created a unique urban tissue in the South. Housing was built around steel mills, as in other industrial areas. This resulted in large industrial zones being next to urban centres. In some cases, as in Differdange, these industrial zones are ‘wedges’, impermeable barriers that separate districts functionally.

Steel production in Luxembourg has declined over several crises and steel mills have reduced or entirely stopped production. Around 2000, some 25 hectares became available in the centre of Differdange. The ‘Plateau du Funiculaire’ was formerly a landfill for the adjacent steel mill.

Urban development concept of the ‘Plateau du Funiculaire’. The urban district of the development is shown in the upper part of the image with the new shopping centre ‘Opkorn’ in the upper right corner. The park along the Chiers is shown in the bottom half of the image. Source: Dewey+Muller, 2022.

Objective

The Plateau du Funiculaire functionally split several Differdange districts, so plans were drawn up to transform the brownfield site into a new urban district. From 2004, the city has developed urban concepts in cooperation with many local and national players. A new district, providing housing, offices and commercial areas is planned to connect the existing districts of Differdange, Oberkorn and Fousbann.

Some challenges had to be addressed in developing the urban concepts, including pollution of the area due to its use as landfill for the blast furnace. In addition, the river Chiers running through the area was planned to be renaturalised, to provide water retention and flood areas.

Time frame

The first scoping studies were realised as early as 2004. Since then, planning and construction has been ongoing with most of the district being finalised in 2020. Final construction during 2022 will complete the project on the former landfill.

Key players

The key player for developing the new area was the city of Differdange. The urban concept was developed with a Luxembourg planning office as well as an investor.

Looks and feels of the urban design of ‘Plateau du Funiculaire’. Source: LuxEnergy S.A., 2021.

Implementation steps and processes

Following the first plans to develop the district in 2000, initial research in 2004 assessed the landfill pollution. At the same time, the city of Differdange also outlined strategic objectives for the district. In 2005, a planning office proposed the look and feel of the new district as an urban concept. Development started in 2006 when the historic ‘Villa Hadir’, a former reception and administrative building for the blast furnace was refurbished. Plans to implement the urban concept were submitted for building permits.

A brand was created in 2007 to establish an urban identity to market the new district to future inhabitants, businesses and commerce. Work on the infrastructure started in 2009 and the first bricks for the residential buildings were laid in 2011. In the same year, the recreational park was finalised, allowing neighbourhood residents to get to know the new urban district. Around 2019, a late change to the project integrated a multi-functional tower, called ‘Gravity’, increasing the number of planned housing units from 650 to 728.

Required resources

The resources used are not known.

Results

After a bit more than a decade of construction, the new district will be finalised in 2022. Within 10 years, 728 housing units have been created, providing accommodation for more than 1,600 people. The district also features 15 km2 of office and retail area. A school, a section of Luxembourg university, public administrative offices and shops complement the housing so the district is a fully developed urban quarter of Differdange.

A new train station links the area to the national railway network. In addition bus connections as well as bike and pedestrian infrastructure connect the district both internally and to the surrounding areas.

To minimise soil sealing, ‘Plateau du Funiculaire’ is high density. Nevertheless, some polluted parts of the former landfill were sealed with an artificial layer of clay so surface rainwater can drain into the nearby river. Rainwater that penetrates polluted soil layers is collected separately for treatment.

Residential blocks in the ‘Plateau du Funiculaire’ district. Source: LuxEnergy S.A., 2021.

Experiences, success factors, risks

The relatively short construction period of ‘Plateau du Funiculaire’ highlights good preparation. Potential obstacles were identified, and solutions developed to avoid these.

The urban concepts and building permits provided planning security. The late modification to include a multi-functional tower in the district shows the project adapted to changing demands. Such flexibility is important as needs and requirements usually change for decade-long large-scale urban development projects.

Conclusions

‘Plateau du Funiculaire’ is a prime example of a successful large-scale brownfield development project. Such projects can close functional gaps between urban districts, offering new housing and commerce. In addition, interests from multiple public and private stakeholders can be addressed in one go. It also shows innovative approaches to issues like polluted soils that are frequently encountered in brownfield developments.

‘Plateau du Funiculaire’ also underlines that brownfield development offers much more freedom compared to developments in existing urban areas. Measures can be discussed before being realised in detail, helping to avoid conflicts.

In addition, brownfield development projects such as ‘Plateau du Funiculaire’ are testbeds for new approaches and technologies. The size of the district meant that planners faced challenges that could not be solved with existing planning approaches. An example is heating for the residential units where a centralised district heating system was planned as early as 2007 to reduce infrastructure costs and save energy.

Today the district offers a new face for Differdange and combines different urban functions in an optimal way. With multiple housing and commercial possibilities, ‘Plateau du Funiculaire’ will eventually become the new centre for the town.

Contacts

Urban technical service of Differdange: pag@differdange.lu

References

Dewey Muller, 2018: Plateau du Funiculaire project presentation (German): https://www.deweymuller.com/projekte/plateau-du-funiculaire/

Aurea Differdange, 2020: Project developer website (in French): https://www.aurea-differdange.lu/fr/localisation

How to enable sustainable urban commercial development in inner cities? How to cope with commercial concurrence between city centres and greenfield shopping centres? How to deal with commercial vacancies? What instruments and tools are there that decision-makers can use?

On Friday, 17. September 2021, CIPU organised an excursion to two Luxembourg cities to address these questions. During an afternoon, around 30 planners and experts from various cities and municipalities across the country learned about the approaches, among others of Differdange, the third biggest city of Luxembourg with 26.000 inhabitants.

The second half of the excursion led to Differdange

Differdange is a city built around a steel mill, featuring several centres that are geographically disconnected. The city has doubled in population during the past 15 years. This made it necessary to upscale urban services and to re-design the city centre. Much of the inner-city offer is still influenced by the consumer habits of steel workers: in footfall of the steel mills, restaurants, cafés, and bars dominate the urban environment, only few shops have been established in the inner city. With the steel mill slowly loosing importance for the urban economic activities, a transition of the urban commercial offer is taking place.

Planners in discussion in front of the new shopping centre, called ‘Op Korn’. Source: Zeyen+Baumann.

To support the re-orientation of the urban offer and to link the geographically disconnected centres, a new district has been developed. At the intersection of two major roads on a former landfill of an adjacent steel mill, the new district ‘Plateau Funiculaire’ links the different districts by providing different amenities and new functions.

The new district has been built around a large shopping centre, that has been strategically placed opposite of the still-running steel mill, at a transport axis through the city. With the development, the place presents the new centre of attraction in Differdange, offering shops, offices, and apartments for new and old inhabitants.

The transition of the urban commercial offer has led to an increasing number of commercial vacancies during the last 20 years. Despite the cities’ smaller size, the challenges Differdange faces are of similar nature to those of Esch-sur-Alzette (see Blog post on the first half of the CIPU Excursion). Both cities suffer from a decreasing inner city attractiveness due to high numbers of vacancies.  

Instead of initiating a proprietary instrument, the municipality of Differdange has purchased two shop surfaces in the city centre and leases them to shop owners or new entrepreneurs. In doing so, the city does not rely on pre-definded procedures and rulings. Instead, it asks interested shop owners and entrepreneurs to develop applications, in which business ideas and shop concepts are described. The dossier is submitted to a selection committee. This committee consists of one representative of all political parties (also those that are not involved in municipal government), and of three citizens. A mix in gender, occupation and length of residency is respected.

Showcase offer of the shop selling gifts and goodies founded by a Syrian refugee. Source: Zeyen+Baumann.

The number of applications the municipality received exceeds the number of available shop surfaces. The two best concepts have been chosen, leading to two new shops being created in the municipality. One of them complements the urban commercial landscape with products for babies to young parents and the other sells gifts and goodies. The second shop was found by a Syrian refugee, who has been welcomed in Differdange during 2020. The shops benefit from marketing support of the public city channels.

More commercial surfaces of different kind (shops, bars, restaurants, etc.) will become available in near future. With the experiences collected, the municipality wants to continue efforts to revitalise the city-centre. For this, more commercial surfaces will be purchased in future and more specialised concepts matching concrete citizen requirements will be realised. This will help to address the issue of commercial vacancies with a versatile and pro-active instrument.

The Differdange City Manager explaining the unique approach to combat commercial vacancies. Source: Zeyen+Baumann.

For more information, visit www.diffmix.lu, which is the citizen involvement platform of the municipality (available in English, French and German) and the municipal website of the city of Differdange: www.differdange.lu

For more information or for comments, please contact the author of this article: sebastian.hans@spatialforesight.eu

How to enable sustainable urban commercial development in inner cities? How to cope with commercial concurrence between city centres and greenfield shopping centres? How to deal with commercial vacancies? What instruments and tools are there that decision-makers can use?

On Friday, 17. September 2021, CIPU organised an excursion to two Luxembourg cities to address these questions. During an afternoon, around 30 planners and experts from various cities and municipalities across the country learned about the approaches, of among other the city of Esch-sur-Alzette, the second biggest city of Luxembourg with 35,000 inhabitants.

The first half of the excursion led to Esch-sur-Alzette

In Esch-sur-Alzette, ‘CLAIRE’ is a municipal initiative with the objective to combat commercial vacancies in the city. The city, which has been a historic commercial centre of the Grand Duchy, features the highest level of commercial surfaces per capita in the country. Consequentially, the inner-city commercial surfaces are highly sensitive to newly occurring trends such as greenfield shopping centres and online shopping.

Luxembourg urban planners during the excursion in the shopping street in Esch-sur-Alzette. Source: Zeyen+Baumann.

Esch-sur-Alzette, also known for its steel industry, has experienced several steel crises during the past century. As consequence, many family-owned businesses have closed because of declining turnover as result of the decreasing purchasing power. Additionally, a former steel mill called ‘Belval’, just adjacent to the city centre has been transformed into a new urban district. A large shopping mall offers many of the amenities the city centre can’t and increases the pressure on the inner-city shops even further.

In 2018, a citizen survey has identified commercial vacancies as a priority topic. Since then, municipal decision-makers became active and developed together with a consultancy the project ‘CLAIRE’, which employs 2.5 full time equivalents.

Planners during the excursion in Esch-sur-Alzette. Source: Zeyen+Baumann.

‘CLAIRE’ helps the municipality to act as middle man between property owners and businesses. It brings shops and stores together through the negotiating power of the municipality and allows to bridge and negotiate different interests. This way the city effectively reduces the commercial vacancies. It offers proven solutions in the form of long-term leaseholds but can also make short-term uses possible; an interim use concepts provides surfaces to shops in the form of pop-up spaces or as showcases for publicity. With reducing commercial vacancies, the inner city has become more attractive, according to surveyed citizens.

An important part of ‘CLAIRE’ are pop-up surfaces. In the framework of this short-term use concept, shop owners can rent a flexible size of commercial surfaces for short periods of time. This helps shop owners to test the general demand and new products with marginal financial and organisational commitment. The pop-up surfaces are known to residents and shoppers from outside and have well-integrated into the ever-diversifying commercial offer in Esch-sur-Alzette of today.

Planners inside one of the pop-up stores. Source: Zeyen+Baumann.

Despite the COVID-19 pandemic and booming online commerce, ‘CLAIRE’ has shown results: in 2021, only 14% of the shop surfaces in Esch-sur-Alzette were vacant. The reduction of commercial vacancies has led to a better perception of the city centre and consequentially to a better image of the city as place to live and place to visit.

Still not all challenges can be solved. So for deadlocks regarding rent expectations of property owners, which sometimes exceed what businesses can pay for. However, rent for commercial surfaces can in most cases be successfully mediated through political support from the council of aldermen.

A more detailed description of the concept in English is provided in a CIPU project sheet, that you may find here: https://site.cipu.lu/images/2019_10_Factsheets/_Claire_final.pdf  

The project has also a website, that you can access here (German and French language): https://claire.esch.lu/

For more information or for comments, please contact the author of this article: sebastian.hans@spatialforesight.eu

Urban retailers face increasing competition through changing consumer behaviour including online shopping and greenfield shopping centres. This leads to vacant retail areas within cities, as customer footfall is channelled away from the centres.

This trend affects the commercial landscape in Luxembourg. Nevertheless, there is almost no data being collected that could help to provide a deeper understanding of the trend and how it can be counteracted. So, the General Directorate for Small and Medium-Sized Enterprises of the Luxembourgish Ministry of Economy, the Chamber of Commerce and the Luxembourg Confederation for Commerce (CLC) initiated the ‘Pakt PRO Commerce’.

The pact will help leverage the economic situation of retailers. A key part of the instrument is the Commercial Observation Register, a new tool to document and categorise businesses across the country. It can be used to analyse the commercial landscape and to inform decision-makers on where there is a large range of retailers and hence centrality as well as potential locations for additional retailers.

Rationale for action

The retailing sector is just one of the many sectors affected by digitalisation as more and more sales volume is generated online. In Luxembourg, between 80% and 90% of the population regularly shops online while only 10% of Luxembourg based shops offer products via the internet. In addition, many greenfield developments for large retailing centres are currently underway, probably decreasing customer footfall in city centres.

These trends threaten the survival of small urban retailers, as their customer base declines. Therefore, more and more retailing space risks being left vacant, which decreases the retail supply and the attractivity of city centers.

Objective

Increasing the understanding of ‘Why?’ and ‘How?’ these processes happen is the main objective of the Commercial Observation Register. This is a nation-wide database of retailers and their characteristics, enabling analysis of the commercial landscape in a city or municipality.

With the aid of data, the Commercial Observation Register can help answer critical questions for developing the urban commercial landscape, such as; ‘What trends shape and form a city’s commercial landscape?’, ‘How does the commercial landscape of a city look?’, ‘Where are the best locations for retailers currently?’ and ‘Where are ideal locations for new retailers?’. The answers assist decision making on urban development.

Time frame

‘Pakt PRO Commerce’, which includes the Commercial Observation Register, was launched in 2016. Collecting information on urban retailers in Luxembourg was completed in February 2019.

Key players

‘Pakt PRO Commerce’ was launched by three partners; the General Directorate for Small and Medium-Sized Enterprises of the Ministry of Economy, the Chamber of Commerce and the Luxembourg Confederation of Commerce (CLC). During the test phase, the Commercial Observation Register has been implemented and managed by the latter organisation.

Users of the Commercial Observation Register are municipal or national policy makers looking to make decisions that could impact the retail landscape.

Based on information from the Commercial Observation Register, the location and typology of shops could be mapped to identify the inner city area of the City of Dudelange. Source: CLC, 2018.

Implementation steps and processes

The Commercial Observation Register is a national database regrouping information on the locations and types of retailers. The CLC, in charge of implementation during the pilot phase, started designing the analysis tool in 2016. Since then, information about each retailer in the country has been surveyed, including address, name, type, size of retail space, business model and type of distribution. These results are fed into a central Geographic Information System (GIS) and can be used for further processing and analysis.

For first-hand analysis, the GIS database can provide information on all retailers in a given location at any time. For more in-depth analysis, the GIS database can be complemented with market analysis, i.e. purchasing power, location analysis and turnover forecasts.

Required resources

The first pilot phase of the Commercial Observation Register has been finalised in 2018. It is planned to make the tool accessible to decision-makers during 2021. However, information on required resources are not available. How the different municipalities and policy makers will be able to benefit from the Commercial Observation Register will be determined after first projects will be finalised, using information from the Register.

Results

With the Commercial Observation Register, municipalities and policy makers can access a versatile tool supporting decision-making. It enables appropriate strategic decisions shaping future commercial landscapes in cities and municipalities. The tool enables definitions of commercial centres, decisions on locating new retailers and understanding impacts of trends, such as digitalisation, on the urban retailing environment.

To elaborate additional benefits and applications of the Commercial Observation Register, the instrument will be tested in five cities. This will enable additional conclusions on specialised applications as well as the data and analysis required to react to specific issues, such as shop vacancy, parking and accessibility, trends in the retailing sector and more. Testing the tool will also provide insights as to when the information can be used best to shape local decision making. This helps to create tailor-made and result-oriented applications for the various retail sector players in Luxembourg.

Potential use of the Commercial Observation Register can be illustrated through development of the new district ‘am Duerf’ by the municipality of Dudelange within the city centre. This new district helped to bridge a commercially deserted area between the two main commercial centres. The number of businesses has increased from 167 to 215 (2018) in just three years, increasing the attraction of the city centre. Also, two commercial hotspots which were formerly separated could be transformed by the ‘am Duerf’ development into a single, continuous retail district (see Map).

The pilot of the Commercial Observation Register has been extended in 2019 on the cities of Esch-sur-Alzette, Diekirch, Remich and Bertrange, addressing different challenges to urban retailers throughout the country.

Map of the commercial situation before and after development of the ‘am Duerf’ district. Source: CLC, 2018.

Experiences, success factors, risks

In the future, the Commercial Observation Register will become a powerful tool to assist policy makers in shaping development of the retailing sector. Not only location, but also decisions on retail space needs can be influenced by the tool. However, the Commercial Observation Register relies on an extensive data collection procedure. Only if data is collected regularly in every municipality can there be reliable observations on trends. This might reflect on the operational costs of the tool for its stakeholders.

Conclusions

The Commercial Observation Register is an instrument with a lot of potential applications to shape retailing functions in Luxembourg’s cities and municipalities. It informs policy makers about the retailing landscape, type and development of supply so they can make decisions considering changing consumer behaviour. Even though such an instrument is not new to the set of tools available to urban planners, it is the first of its kind in Luxembourg. More initiatives like the Commercial Observation Register supporting domestic retailers and shop owners, such as the online platform “Letzshop”, have been implemented recently.

Contact

General contact address of the Luxembourg Confederation of Commerce: info@clc.lu

References

Pact PRO Commerce, 2018 (in French and German): https://www.procity.lu/fr/2018/07/16/quelle-valeur-ajoutee-le-nouveau-cadastre-du-commerce-offre-t-il/

Luxembourg Confederation for Commerce, 2018: The new Commercial observation register for Luxembourg. What’s the added-value? (in German): https://www.procity.lu/2018/07/16/das-neue-cadastre-du-commerce-welchen-mehrwert-bietet-es/

Wort, 2020: Le cadastre commercial fait attendre (in French): https://www.wort.lu/fr/luxembourg/le-cadastre-commercial-se-fait-attendre-5e4417feda2cc1784e3560fe