A negotiation decision model for public–private partnerships in brownfield redevelopment

Abstract

Urban development cannot proceed without the commitment of multiple actors, because decision-making processes have become more and more interdependent. This article supports better decision-making in brownfield redevelopment projects in cases where the project realization depends on a public–private partnership between a municipality and a developer. In a broader sense, in this research, we investigate how the negotiation process in brownfield redevelopment projects can be improved by providing an understanding of the characteristics of a brownfield area and the interaction between the parties involved. In order to improve the process, a negotiation decision model is proposed. This is a hybrid model consisting of five phases. Its novelty lies in the combination of a latent class model and a strategic choice model that can be formulated as a prescriptive-interactive approach in decision theory. The hybrid negotiation model is applied to a reconstructed case study in order to present its possibilities. Accordingly, three applications of the model are introduced, and in each application the beneficiary is a municipality. Although using decision models for brownfield redevelopment projects has already been thoroughly studied, there is little evidence concerning the prescriptive-interactive component built into existing models.