Zwickauer Straße area

Based on on-site inspections, statistical analyses and public participation, significant deficits and shortcomings were identified for the area under investigation, which justify the need for urban development measures to improve the area over a longer period of time:

• Vacant commercial buildings, shops and flats, refurbishment backlog and maintenance deficiencies in buildings,
• endangered listed buildings,
• low proportion of green and open spaces, ecological deficits in existing green spaces and bodies of water,
• Functional deficits due to the lack of a district centre,
• Oversized traffic space and deficits in the Zwickauer Straße street area with accident potential, traffic and noise pollution,
• Parking space problems.
  

The greatest need for action is in the eastern part of the study area. For this reason, the redevelopment objectives were determined and a "redevelopment area" was established on 13 July 2022 in accordance with Section 142 of the German Building Code (BauGB) by resolution of the city council. The redevelopment is intended to help redesign and revitalise the "Zwickauer Straße" area as a functional and contemporary residential, working and business area with high urban quality. The redevelopment area is to be further developed in its function as an entrance area to the city centre.

In order to achieve these goals, urban development funding has also been applied for from the federal government, the state and the European Union. However, considerable funds from the municipal budget and many investments by other private and public bodies are also required. For certain areas, the city is creating new building rights for contemporary developments or for sensible land reorganisation through development plans. A concrete concept of measures describes the requirements for the next 15 years in the framework plan and in the funding concept. Applications for funding were submitted by the city and in November 2022, the Zwickauer Straße area was included in the federal-state programme "Growth and Sustainable Renewal". The city's budget funds also need to be planned for the coming years. This will also enable private investments to be activated. Realisation is therefore still largely dependent on the provision of funds spread over a longer period of time.

The state also grants tax benefits for the modernisation of buildings owned by private owners in redevelopment areas and for listed buildings in order to facilitate private investment (in accordance with Sections 7h and 7i EStG). These tax incentives often have a major impact in redevelopment areas. It is essential that an agreement on the implementation of these measures is concluded between the urban planning office and the owner before the redevelopment measures begin.

There will be some changes for owners within the redevelopment area once the redevelopment statutes come into force. The application of the redevelopment law in accordance with the BauGB helps to control the development in order to gradually realise the objectives of the redevelopment in the area. For example, a redevelopment note is entered in all land registers at the beginning, informing notaries and owners of the application of the redevelopment law. For all property sales or the creation of encumbering property rights and changes to properties and structures (e.g. the renovation or conversion of buildings, including the change of use of properties), permits must be obtained from the City of Chemnitz at the City Planning Office. This also applies to projects that do not otherwise require authorisation under the Saxon Building Code. With this so-called redevelopment authorisation, the city ensures that only measures that comply with the redevelopment objectives in the area are implemented and that speculation with properties is avoided. The application forms are already available on the city's service portal under "Apply for redevelopment authorisation". The Urban Planning Office, Urban Renewal Department also provides advice on how to apply.

If the redevelopment objectives are largely fulfilled, the redevelopment area can be completed after approx. 15 years and the redevelopment statutes can be cancelled by the city council. The redevelopment measure was decided in the so-called comprehensive procedure. If the entire area develops well, the land value of the properties will increase as a result of the city's redevelopment measures. These findings are already available from 5 other redevelopment areas that have been successfully completed in the city over the last 30 years. This "redevelopment-related increase in value" must be paid by the owners to the city in the form of "equalisation contributions" after the redevelopment area has been completed. The amounts collected in this way will be reinvested in the "Zwickauer Strasse" area, because even after 15 years there will still be a certain need for redevelopment.

In individual cases, the City of Chemnitz supports the modernisation and repair of private buildings in the "Zwickauer Straße" development area (see site plan) by reimbursing a proportion of unprofitable costs as a grant. In accordance with the "Urban Renewal Funding Guideline" (FRL StBauE in the current version, currently dated 7 March 2022) of the Free State of Saxony, funding can also be provided on a lump-sum basis. The City of Chemnitz is using this announcement to inform all potential developers in the new "Zwickauer Straße" development area about the possibility of flat-rate funding amounting to 25% of eligible expenditure.

Previously vacant, unrenovated or underused, partially renovated buildings built before 1949 and monuments of historical, artistic or urban significance for the surrounding neighbourhood are eligible for a lump sum. They must show fundamental structural deficiencies and be considerably restricted in their usability without further renovation.

The services applied for funding should lead to an overall sustainable improvement in the usability of the building. It is not permissible to subsidise only individual services. In individual cases, however, the deficiencies in the building may lead to funding only for the roof and façade. Security measures already subsidised by the city are excluded from this blanket subsidy. Projects by property developers (creation of owner-occupied flats) are generally excluded from funding. If the owner has not yet fulfilled his repair obligations, the eligible costs will be reduced by 10 % by the city.

The owner makes advance payments and receives the subsidy in the form of instalments depending on the progress of construction or after completion of the project. In the case of longer-term projects, the subsidy must be secured in the land register beforehand.

The basis for the funding lump sum is the proven expenditure for cost groups 320, 330, 351, 360, 390, 490, 510, 520, 540 (except 546-549), 561, 590, 730 and 740 (except 748) in accordance with DIN 276, December 2018 edition.

The owner must apply for funding in writing to the City of Chemnitz, City Planning Office, Friedensplatz 1, 09111 Chemnitz.

The funding application must include

• Cover letter with the requested amount of funding and the owner's signature
• Current proof of ownership with extract from the land register and all details of the property and building, including year of construction and listed building status
• Current site plan
• Description of the condition of the building and the need for renovation, photos
• Specific building description as a conversion plan analogous to service phase 3 of the HOAI (for projects requiring planning permission), otherwise on the basis of professionally prepared offers
• professionally prepared cost estimate according to DIN 276 for all cost groups at least in the 2nd classification level, net, plus VAT.
• Start and end of the refurbishment (month/year), also for individual sections
• Future utilisation concept according to type and areas
• Financing concept including necessary interim financing and own funds
• Declaration of entitlement to input tax deduction for the project
• Proof of maintenance work carried out in the last 5 years or since acquisition

Suitable application forms will be made available on request and must be supplemented by the aforementioned attachments.

The urban planning office reviews the applications for funding on an ongoing basis after receipt of the application and decides on the basis of the importance of the measure and within the scope of the available urban development funding and resources of the city. Decisions are also based on the approved redevelopment and funding objectives from the "Zwickauer Straße" urban development framework plan(resolution B-056/2022) and the resolution on the preparatory investigations for the "Zwickauer Straße" redevelopment area(resolution B-119/2022).

If the result is positive, the city will conclude a subsidy agreement with the owner. No work may be commissioned or commenced before the contract is concluded. For funding of € 100,000 or more, three comparative offers must be obtained from companies.

For all changes to properties and buildings in the "Zwickauer Straße redevelopment area", redevelopment permits must be obtained from the city planning office.

If you have any questions about the funding, please contact the City Planning Office on 0371 4886032 or by email at stadtsanierung(at)stadt-chemnitz.de.