Economic land observatories at the service of local economic development
Practical notebook no. 16: (Re)developing productive activities in metropolitan regions
Thierry Petit, November 2024
When it comes to regional development, the spatial organisation of the economic fabric has a direct impact on the live / travel / consume / work quadrangle. The major challenge is to plan the location of these dedicated business sites as effectively as possible, and to monitor their development, so that in the long term we have a supply of land and property that matches the needs and resources of businesses. Since 2022, local authorities have been equipped with several tools for inventorying economic zones. On the island of Réunion, which is characterised by severe topographical constraints, the town planning agency largely anticipated the legal obligations and, since 2003, has been developing a land observatory, a genuine partnership tool for territorial knowledge and forecasting, today designated as a model of territorial governance.
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Today, some local authorities, urban planning agencies, chambers of commerce and industry and regional authorities choose to set up an economic land observatory to meet their own needs or those of specific partners and stakeholders. These are monitoring tools, but they are also decision-making tools. They can take a variety of forms depending on the context, providing a better understanding of an area’s economic geography. In addition, the pooling of data between several players facilitates the emergence of a shared diagnosis. In-depth analysis of the state of business parks, some of which concentrate the majority of the region’s productive activities, helps to anchor the productive economy more firmly within an overall context of economic development.
Taking advantage of the inventory obligation to create an economic observatory
The 2022 Climate and Resilience Act gives intermunicipal authorities the task of drawing up an inventory of the ZAEs in their area. This process involves documenting various characteristics for each zone, such as: a breakdown of land units (surface area of each unit and identification of the owner), identification of the ZAE’s occupants and calculation of its tax vacancy rate. Many regions are launching initiatives to improve their knowledge of their economic land. Some have developed data models for inventorying and characterising ZAEs or other economic sites. In order to standardise this data and ensure its interoperability, a national standard for exchanging data on economic sites has been created by the Conseil national de l’information géolocalisée (CNIG).
This geostandard is aimed at local authorities, the national economic property portal (France Foncier+), and any user wishing to identify economic sites and their characteristics in their geographical context. The creation of an economic observatory offers a host of strategic advantages for regional development. The observatory provides an in-depth understanding of economic dynamics and enables long-term trends to be identified so that informed decisions can be made. It also makes it possible to anticipate future land requirements and proactively plan the development needed to support economic growth in line with a ZAN trajectory.
Setting up an economic land observatory in Réunion
In 2003, Agorah, Réunion’s urban planning agency, set up an economic land observatory, a successful model of shared governance and consensual working. Over time, this observatory has become a genuine tool for forecasting business parks (including mixed ones) and de facto zones, which were initially not intended to host businesses. Based on shared, reliable data that is close to the reality on the ground, the OFE operates on three levels. Firstly, it presents a detailed observation of the island’s economic areas based on around thirty indicators. Secondly, it provides invaluable expertise to local authorities in optimising existing sites and creating suitable economic areas.
It also guides businesses in their search for new locations. Finally, OFE leads a network of players formed around the sharing of knowledge, and organises workshops, site visits and themed economic breakfasts. Updated every two years, the OFE provides a dynamic overview of business sites at different scales, from the regional level down to the individual plot. Elected representatives, technicians and the general public now have easy access to quantitative and qualitative data on the development of local economic land thanks to two main tools. The economic space dashboard with figures enables analysis at different geographical scales, while the interactive map provides precise geolocation at the plot level. In addition to the analysis tools, the observatory includes a ‘strategy’ section, which is intended to be the concrete and operational outcome of all the work carried out. Based on what the players have said, the OFE proposes 15 priority actions to be implemented in order to provide the best possible support for the region’s economic areas and, by extension, for businesses and regional development. Grouped into seven proposals, these actions are the fruit of discussions with participants at the various meetings organised in previous years. As a network of players working for regional development, the Observatory sheds light on and harmonises public policies and related strategies.
Monitoring economic activity in the Paris Region
The Paris Region Institute has developed a database of business sites, which was used in particular to draw up the draft SDRIF-E, due to be adopted in July 2023. This database has been used to define the perimeters within which business parks are to be protected and the sectors to be given priority for redevelopment. In its methodology, it goes beyond the question of business parks by also identifying major economic sites in order to obtain as complete a picture as possible of the economic land base in the Paris region. It incorporates a typology of zones by sector of activity (tertiary, retail, logistics, industrial or mixed for zones not dominated by activity), which makes it easier to distinguish the different economic fabrics.
Success factors/needs for attention
The OFE makes it possible to monitor the availability of land over a long period in order to better preserve and anchor productive activities in an area. The implementation of partnership governance between all the stakeholders facilitates the sharing of information and guarantees the transition from a ‘technical’ tool to a ‘decision-making aid’. Implementing an OFE requires securing human and financial resources in order to maintain the quality of monitoring.