Anyang City in Gyeonggi Province recently announced a legislative notice for the "Ordinance on the Maintenance and Support of Aging Planned Cities in Anyang," which proposes a public contribution rate higher than other regions, raising concerns that the profitability of projects may deteriorate and delay redevelopment projects.
On the 10th, Yoo Young-il, Vice Chairman of the Urban Environment Committee of the Gyeonggi Provincial Council (People Power Party, Anyang 5), attended a "Resident Briefing on the Establishment of the Pyeongchon New Town Redevelopment Basic Plan" held at the Anyang City Hall auditorium and explained, "The ordinance states that if the floor area ratio (FAR) determined by the special redevelopment plan is lower than the standard FAR set by the basic redevelopment plan, the public contribution rate is set at 15% of the difference between the FAR determined by the special redevelopment plan and the FAR before the establishment of the special redevelopment plan (the previous FAR recorded in the current building register)."
He continued, "Infrastructure includes facilities necessary for residents' daily lives and the maintenance of urban functions, such as roads, parks, schools, social welfare facilities, as well as shared-use facilities like daycare centers and senior centers, which are essential for the maintenance of aging planned cities. According to the Enforcement Decree of the Act on the Maintenance of Aging Planned Cities, the public contribution rate for infrastructure installation should be set by ordinance within a range of 10% to 40%." He added, "While Bucheon Jungdong and Gunpo Sanbon proposed a 10% rate, Anyang proposed 15%, raising issues of fairness between regions."
In particular, he noted, "Adjacent Gunpo City set the public contribution rate at the legal minimum of 10%, but since Anyang City announced 15% in the legislative notice, dissatisfaction among local residents has intensified, spreading into conflicts within and between regions."
Furthermore, he expressed concern, saying, "The average construction cost for nationwide reconstruction and redevelopment projects in 2023 is 6.875 million KRW per pyeong, a 43% increase from 4.803 million KRW in 2020. Due to the sharp rise in construction costs, residents' contributions may be higher than expected, which could become a variable in redevelopment projects. In this situation, a high public contribution rate could worsen project profitability."
He also emphasized, "To improve urban residents' quality of life and ensure the smooth functioning of the city, infrastructure above an appropriate level must be expanded. The public contribution rate should be carefully reviewed for fairness between regions and project feasibility to find a balanced solution. If necessary, we will coordinate with Gyeonggi Province to support briefings or consultations so that the long-awaited redevelopment projects for aging planned cities by local residents can proceed swiftly, and I will see this through to the end."
Meanwhile, Vice Chairman Yoo Young-il will hold a forum titled "Key Issues and Responses of the Aging Planned City Maintenance System" on October 10 at the conference room of Dongan District Office to discuss the promotion plan after establishing the basic redevelopment plan.
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