drama municipality strategic agenda

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WP4Urban Programming

Output 4.7. Integrated Strategic Territorial/Urban Agenda in Drama

ERDF PP9 Drama Chamber (GR)

Version 01

Prepared by:

Drama Chamber http://www.dramanet.gr

Reviewed by:

STATUS Content Management URBASOFIA www.urbasofia.eu

Urban Planning Institute of the Republic of Slovenia www.uirs.si

http://www.urbasofia.eu/

http://www.uirs.si/

Workpackage 4 Urban Programming

Activity 4.2 Definition of planning scenarios:

prioritization design of urban strategic agenda

D4.7 IntegratedStrategic Territorial/Urban Agenda in Drama

ERDF PP9 Drama Chamber (GR)

2/38

Projectnumber: SEE/D/0297/4.1/X

Projectacronym: STATUS

Projecttitle: Strategic Territorial Agendas for "Small and Middle-Sized Towns" Urban Systems

Instrument: INTERREG IV B SEE

Callidentifier: South East Europe Call D

Activitycode:

StartdateofProject: 2012-12-01

Duration: 24 month

Deliverablereferencenumberandtitle(asinAnnex1): D4.7IntegratedStrategic

Territorial/Urban Agenda in Drama

Duedateofdeliverable(asinAnnex1): 2014-11-30

Actualsubmissiondate: see “History” Tablebelow

Revision:

Organisationnameofleadcontractorforthisdeliverable:

Municipality of Kavala

Projectco-fundedbytheEuropeanCommissionwithinthe INTERREG IVB South

East Europe Programme(2007-2013)

DisseminationLevel

PU Public PU

PP Restrictedtootherprogrammeparticipants(includingtheCommission

Services)

RE Restrictedtoagroupspecifiedbytheconsortium

CO Confidential,onlyformembersoftheconsortium(includingtheComm

issionServices)

Output 4.7 Integrated Strategic Territorial/Urban Agenda in Drama ERDF PP9 Drama Chamber (GR)

3

Title:

D 4.7 - Integrated Strategic Territorial/Urban Agenda in Drama ERDF PP9 Drama Chamber (GR)

Author(s)/Organisation(s):

AlkisPapademetriou,

WorkingGroup:

WP4

References:

STATUS Final Application Form (INTRA-5108827)

STATUS Project and financial management handbook

ShortDescription:

Output 4.2, 4.5 and 4.6 are going to be combined and presented as the final Strategic Territorial / Agenda.

Content manager coordinates. Scientific and technological partners provide methodologies and techniques, tools

necessary to facilitate the exchange of ideas, knowledge and expertise in the activated participatory planning process

leading to the final Agendas design.

Keywords:

Strategic territorial agenda, strategy, workshops, participatory tool, geoblog, stakeholders, working groups, solutions,

problems

History:

Version Author(s) Status Comment Date

00 Barbara Music (UIRS) Structure Template of the report 16/09/2014

01 AlkisPapademetriou

1. Draft Draft of the report 29/12/2014

Review:

Version Reviewer Comment Date

01

02

Sabina Dimitriu (As. CM)

Sabina Dimitriu (As. CM)

PietroElisei (CM)

Review of Report Template

Review of 1. Draft

23/09/2014

20/10/2014

xx/xx/2014


4

Table of Contents

Table of Contents................................................................................................................................... 4

Table of Figures ..................................................................................................................................... 5

Abbreviation List ................................................................................................................................... 5

1 The importance/purpose of the Strategic Territorial/Urban Agenda (ST/UA) ....................... 6

2 Scope and vision of the ST/UA 2020 ............................................................................................ 7

3 The process leading to design of the ST/UA in Drama .............................................................. 9

4 Goals and projects of the ST/UA ................................................................................................ 18

5 Implementation of the ST/UA .................................................................................................... 21

6 Project Fiches: Priority projects corresponding to each goal / objective of the ST/UA ........ 27

7 The Poster Plan ............................................................................................................................ 36

8 Conclusions .................................................................................................................................. 38

9 References .................................................................................................................................... 38

10 Annexes......................................................................................................................................... 38


5

Table of Figures

Tables

Table 1: List of prioritized projects ....................................................................................................... 19

Table 2: ST/UA´s Action Plan of Drama .............................................................................................. 21

Table 3: ST/UA´s Action Plan of Drama in a timeline ......................................................................... 22

Table 4: Risk assessment ....................................................................................................................... 23

Table 5: Monitoring and evaluation framework of the ST/UA ............................................................. 25

Figures

Figure 1: The process of designing ST/UA (source: UIRS design) ........................................................ 9

Figure 2: Timeline of the process of ST/UA design (source: own design) .......................................... 11

Abbreviation List CKP - cities knowledge platform

ST/UA - Strategic Territorial/Urban Agenda

TP – Territorial Partner

SEE – South Eastern Europe

UC – Urban Centers

UTF – Urban task forces


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1 The importance/purpose of the Strategic

Territorial/Urban Agenda (ST/UA)

The current Municipality of Drama emerged from the conjunction of the former Municipality of

Drama with the former Community of Sidironero. The City of Drama, the chosen area of intervention,

is situated in the South of the Municipality of Drama. It is the capital of the Municipality and a

significant urban center of the region. The city of Drama was the intervention area in the context of

the STATUS project, since it constitutes the Municipality’s economic and administrative center and is

recognized as an entrepreneurial and transport center as well as a cultural pole. Moreover,

propagating benefits from any action taken there could be more easily spread to other areas of the

Municipality. Furthermore, the city of Drama concentrates the majority of the entrepreneurial

activity as well as relevant infrastructure (transport, support structures etc).

In the City of Drama an issue rose from the concentration of infrastructure, operations and services

that cause pressures (conflict of land uses, congestions etc.) within the urban web, resulting in

problems for the local entrepreneurial community as well as the inhabitants (degradation of quality

of life). Hence, actions needed to be taken towards improving the quality of life within the city

through urban interventions – regenerations and facilitating urban entrepreneurship.

The Strategic Territorial Urban Agenda is a great opportunity for the city of Drama to enhance urban

entrepreneurship. To be more specific, the main objective of the strategic agenda is to plan a

sustainable and competitive urban environment to facilitate and promote local entrepreneurship.

The centre is expected to host affiliated operators from the most active sectors with the most future

perspective. Consequently, the conditions for a sustainable development will be created directly with

a broader social impact of extra jobs.

Hence, our Strategy will be based upon urban entrepreneurship. Drama’s strategy aims at planning

and organizing an integrated local entrepreneurial activity, focusing on urban interventions for


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facilitating entrepreneurship on the city level, structures to stimulate and promote entrepreneurship

as well as infrastructure projects for supporting entrepreneurship.

2 Scope and vision of the ST/UA 2020

The area of intervention was chosen as part of the Strategic Territorial Urban Agenda after

considering different aspects of its location, potentials and capacities. More specifically, the analysis

included quantitative and qualitative criteria, which were among others: the geopolitical position and

strategic significance of the area; it’s the transnational character; the accessibility capacities

(connections, main transport infrastructure); the entrepreneurial profile of the area and the

technological and research infrastructure. Additionally, the quality of the urban and natural

environment, as well as, the potential production infrastructure was taken under consideration.

The current Municipality of Drama emerged from the conjunction of the former Municipality of

Drama with the former Community of Sidironero. The city of Drama will constitute the area to be

studied, in the context of the STATUS project. It covers around 3,4 km², with a total number of

38.549 inhabitants according to the 2011 census, that corresponds to the 78% of the Municipality’s

population. The selected area of Drama has a long entrepreneurial tradition demonstrating a high

dynamic in sectors like agriculture (wine, smoke, vegetables, and cereals), wood and marble industry.

However, many economical problems exists such as the high unemployment rates (official

unemployment rates ≈ 20%, actual rates higher than 25%) and the luck of a substantial amount of

funds amongst local stakeholders for financing developmental projects or urban interventions /

regenerations projects as well as new entrepreneurial activities.


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Picture 1: Area of intervention source: google maps

In the case of Drama, the local Chamber is the involved partner and therefore it was decided that in

order to conclude a sustainable and applicable strategy, the thematic and content of Drama’s Agenda

(as well as relevant interventions) had to be related with the activities and mission of the Chamber.

Under this framework, the strategy for Drama was focused on entrepreneurial development and

gave emphasis on matters of planning for urban entrepreneurship, urban interventions for

supporting entrepreneurship and locating entrepreneurial activities at urban level.


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3 The process leading to design of the ST/UA in

Drama

The process of designing the Strategic Territorial/Urban Agenda follows three major steps:

Figure 1: The process of designing ST/UA (source: UIRS design)

The first workshop was dedicated to an introductory presentation of the project STATUS. The project,

its aims and objectives were presented as well as its outputs and methodology of implementation.

Furthermore, Chamber executives presented features of the project and explained how the STATUS

project will benefit (a) the urban development of Drama and (b) the entrepreneurial world of Drama.

Lastly, all the stakeholders were presented and all the participants introduced themselves.

The most important topic of the first workshop was the one that dealt with existing problems

regarding entrepreneurship and the support to the SMEs for growth and development. The networks

of entrepreneurship including district economies and clusters were discussed thoroughly. A new

issue that is examined by the Drama Chamber is the issue of “Smart Specialization” for which a good

deal of discussion was devoted. This was the topic/ issue that raised a lot of discussion due to the

nature of our organization that is a Chamber of Commerce and has to do with the entrepreneurial

development of the region and due to a number of participants that were coming from the

entrepreneurial sphere.

The main topics discussed, regarding this aspect, were:

The issue of the fiscal crisis that plagues Greece was a major issue of concern and was raised

in the discussion of the workshop.

Alternative and contemporary methods of entrepreneurial activity were discussed as well.

These methods had to do with the following:

a) Knowledge economy

b) Innovation


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c) Innovation farms

d) Techno-genesis

e) Social economy (especially in relation to the fiscal problems of the region)

Networks of entrepreneurial activity such as:

a) Co-working

b) District economies

c) Clusters

d) Cooperation with neighbouring Bulgaria

Smart Specialization was an issue introduced in the discussion and a new programme

undertaken by the Drama Chamber on “smart specialization” was presented.

Structural changes, human resources, spatial capital in relation to the entrepreneurial

cooperation with neighbouring Bulgaria.

Industrial knowledge.

Tourist development of the region in relation to agro-tourism activities that have grown

tremendously in the region in the last decade.

The second workshop was focused on urban solutions and prioritization in order to organize the

process that will lead us to the definition of the Strategic Urban Agenda for the Region of Drama.

Thus, regarding the most important issue identified in the first workshop, the second workshop

stated the problem of the utilization of space for the development of entrepreneurial activities and

the provision of contemporary support to the enterprises.

Consequently, a first solution refers to the development of new facilities for the support of

entrepreneurship and the creation of a systemic approach which can include, in the framework of an

integrated supporting services to the enterprises with a series of sub-systems and functional

relationships, integrated within themselves at the macro level, such as: entrepreneurial space,

commercial system and logistics, industrial parks, business centres, etc.


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PRIORITIES

Economic infrastructure: Creation of business parks, Technology Park, logistics center, incubators

and business centers.

3.1 Timeline of the overall process of the ST/UA design

Figure 2: Timeline of the process of ST/UA design (source: own design)

The first thematic workshop organized in the Drama Chamber within the “STATUS” programme took

place on the 29th, 30th and 31st of October 2013, at the premises of the Drama Chamber at the

Executive Council hall.

The second local workshop was held at the premises of the Drama Chamber on the 19th and 20th

February 2014.

The third workshop was held at the premises of the Drama Chamber on the 17h and 18thof June 2014.


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3.2 Operational Analysis

Based on the fact that the Drama Chamber of Commerce focuses on activities related to

entrepreneurship and the business environment, the strategy for Drama was focused towards

entrepreneurial development and emphasis was given on matters of planning for urban

entrepreneurship, urban interventions for supporting entrepreneurship, locating entrepreneurial

activities at urban level etc.

The foreseen Strategic Agenda will focus on specific key points which are vital for the development of

the intervention area. The aforementioned key points include the incorporation of the

entrepreneurial activity at city level, as well as the redefining of the “entrepreneurship – public

space” relation through the improvement of the quality of life within the city and the stimulation of

urban entrepreneurship. The aforementioned urban entrepreneurship stimulation will be realized

since the initiation of entrepreneurial activity will promote and give a boost to all activities in the

area.

Hence, after taking under consideration the basic points, the appropriate potential actions were

defined that include the realization of interventions within the urban fabric to facilitate

entrepreneurship, the establishment of structures in order to promote and stimulate

entrepreneurship, the implementation of urban regeneration plans and the implementation of

projects that support entrepreneurship.


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3.3 Urban programming and Urban Task Forces (UTF)

Figure 3: Participatory tools (source: own design)

A strong preparation period before the event took place in the preceding weeks in order to secure

the participation of a number of executives from other organizations as well as a score of

representatives from enterprises which are members of the Chamber.The support and assistance of

the Drama Municipality was paramount in the preparation efforts. Especially the Urban Planning

department was instrumental at the preparation of the academic topics and the particularities of the

issues included in the workshop.

It was difficult to secure a number of participants but eventually we had a good number. There are

three main elements that assisted us in order to secure a number of participants. First of all, we

issued press releases and the Drama Chamber president gave interviews on local radio and TV.


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Furthermore, we used the Drama Chamber electronic mailing list that provided us the means to

make a direct information campaign by sending electronic information. Secondly, using as an

advantage the fact that Drama is a small city, we used personal contacts by phoning people that

would be instrumental to the success of the process and asked them directly to support the efforts.

Moreover, we managed to secure the participation of a number of representatives from enterprises

because they are our members and it was easy for us to mobilize them.

The composition of the second workshop was somehow different than the one from the first one.

Although there were participants from the Region of Drama, the second workshop received a wider

regional attention as officers, executives and administrators from the Region of East Macedonia and

Thrace participated at the event. Professors and students from the Regional University of Democritus

from Thrace and a professor from the Technical Institute of Kavala participated as well.

Besides the lower actual presence of public institutions and private stakeholders, newcomers had

also been registered, especially from the local authorities and energy and gas companies. Overall,

stakeholder group composition between the preparation phase and the deployment of the first local

event had not suffered radical changes; only a general decrease in attendance was presence.

Nevertheless, interesting conclusions can be drawn from the comparison between the two

workshops. Firstly, the stakeholder group was comprised by solely the actors being able and willing

to participate and share their opinions within the workgroups: a total of 24 participants. Secondly,

the proportion of attendees from public institutions shifted to an almost50% reduction from the first

to the second workshop; the lack of consistency and continuity can be attributed to several reasons

of which the desire of the invited actors to “just come and see” in the first workshop and their higher

willingness to signal problems over solutions could be rated as the most prevailing.

Each workshop had a starting point from which it developed further. To be more specific, the first

thematic workshop was focused on examining the issues and identifying the problems existing in the

intervention area per section. Whilst, the second workshop focused on urban solutions regarding the

already identified problems and prioritization of the solutions that gradually led to the definition of

the Strategic Urban Agenda for the Region of Drama. The second workshop had two main objectives;

to further consolidate the Urban Task Force and commit stakeholders to the goal of shaping the

region’s Strategy through their proposal of solutions for the urban problems defined within the first


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workshop. In the third workshop, the projects per each subsystem were outlined in a ‘solutions’

workshop in order to create the strategic plan.

The working groups in the first workshop were the following:

1. Environment

2. Transportation and Accessibility

3. Entrepreneurial environment

4. Decision making and stakeholders

5. Capitalization issues

During the second workshop the working groups were formed as below:

1. Environment

2. Economy and Entrepreneurship

3. Governance, civil society, socio-cultural infrastructure & networks

4. Public space, urban development and renewal

5. Capitalization Issues

1st/2nd/3rd Workshop attendance:

Date when it was held: 29-31/10/ 2013

Total number of participants: 27


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Date when it was held: 19-20/02/2014

Total number of participants:22

17

11

61

11

3rd Workshop attendance by stakeholder status (%)

Public institutions

Civil society

Private stakeholders

University, R&D

Date when it was held: 17-18/06/2014

Total number of participants: 18


17

FINAL UTF COMPOSITION

25

1153

11

Drama Urban Task Force (%)

Public institutions

Civil society

Private stakeholders

University, R&D

Total number of members: 19

Type of formalization: Partnership Agreement


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4 Goals and projects of the ST/UA

Due to the fact that Drama is surrounded by valuable farmland and pristine woodlands, there is very

little space available for the development of enterprises and entrepreneurial activities. This aspect is

exacerbated by the lack of a business activity centre or industrial platform. Hence, the currently

unused public areas that belong to the central government and are practically parts of the urban

agglomeration amount for large brownfield zones and do not function, produce or absorb labour.

Therefore, one chief objective of the Strategic Agenda is to utilize these specific areas for the

development of the business sector and in order to provide entrepreneurial services, such as logistics

and business development centers, business parks for the development of low-impact handicraft

units and the development of business incubators, co-working activities, etc.

The criteria for prioritizing the projects were focused on the exploitation and appropriation of empty

spaces in order to be further developed for entrepreneurial activities that will enhance the local

economy, add value to the intervention area and bring growth to the city of Drama. Additionally, it

was recognized that some innovative activities for the support of the entrepreneurial sector should

be undertaken, since the region is lacking behind in structures that can increase the economic

development and must be competitive towards the big markets that are available in the neighboring

regions of Bulgaria and Turkey.

Consequently, the projects that comprise the development of new facilities for the support of

entrepreneurship that might include supporting services to the enterprises, such as: entrepreneurial

space, commercial system and logistics, industrial parks, business centers, etc, are the ones that are

prioritized in the Strategic Agenda.


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Table 1: List of prioritized projects

Priority

nr.

Name of the

project

Topic Funding opportunities Opportunities for

partnership

1 Drama Logistics

Center (DLC)

Entrepreneurial

Activities/

Economic

infrastructure

The ROP East Macedonia

– Thrace for the years

2014-2020

Municipal funding

ESF

Horizon 2020

DLC will be a joint

effort of six major

stakeholders: a

private investor, the

Municipality of

Drama, the

(Business) Chamber

of Drama, the

Hellenic Railways,

the Drama

Development S.A

and the local –

regional

Technological

Institutes.

2 Drama

Entrepreneurship

Center (DREC)

Entrepreneurial

Activities/

Economic

infrastructure

The ROP East Macedonia

– Thrace 2014-2020

Municipal funding

ESF

Horizon 2020

DREC will be owned

by a Public Private

Partnership

company (DREC

S.A.), which will be

established

exclusively for that

reason. The

shareholders of

DREC S.A. will be the

following: The

Municipality

Authority of Drama

(owner of the site),

the Chamber of

Drama, the Center

of Business and

Technology

Development of

Eastern Macedonia

and Thrace, the


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Drama

Development

Company S.A., the

Institute of

Technology of

Drama and a private

investor


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5 Implementation of the ST/UA

5.1 Key actors responsible for the implementation of the ST/UA

Table 2: ST/UA´s Action Plan of Drama

Action

priorit

y nr.

Action Name Person

responsible

(member of

the UTF)

Status (preparatory

phase/active/

not active)

Due

date

Date

completed

Funding

opportunities

Opportunities

for partnership

1 Drama

Logistics

Center (DLC)

Charalam

bos

Alexandri

dis,

Director,

Drama

Chamber

Not active 2015 2018 The ROP East

Macedonia –

Thrace for

the years

2014-2020

Municipal

funding

ESF

Horizon 2020

DLC will be a

joint effort of

six major

stakeholders:

a private

investor, the

Municipality

of Drama, the

Chamber of

Drama, the

Hellenic

Railways, the

Drama

Development

S.A and the

local –

regional

Technological

Institutes.

2 Drama

Entrepreneu

rship Center

(DREC)

Charalam

bos

Alexandri

dis,

Director,

Drama

Chamber

Not active 2015 2018 The ROP East

Macedonia –

Thrace for

the years

2014-2020

Municipal

funding

ESF

Horizon 2020

DREC will be

owned by a

Public Private

Partnership

company

(DREC S.A.)


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Table 3: ST/UA´s Action Plan of Drama in a timeline

5.2 Risk assessment

The risk analysis considers critical factors that may lead to a failure of the business concept during

the implementation phase, as well as during operations.

1. Insufficient demand: This is the most frequent reason that leads to business failure. This includes

permanently low demand, as well as a temporary collapse in demand. It happens due to the fact that

demand estimates were too optimistic at the outset. Such failures might also come from external

shocks instead of operating deficiencies. Since the expected frequency of customers during the start-

up phase is still low, a critical success factor is to focus promotional effort so as to generate customer

loyalty early on, which will help minimize the effects of demand fluctuations.

2. Behavior of Competition: Due to low entry barriers, additional businesses can enter the market

at low cost. Means that could be used by an entrant to gain a competitive edge are, amongst others,

the provision of a better service concept, innovative ideas and concentration on core businesses.

3. Liquidity constraints: Another frequent reason for bankruptcy is insufficient liquidity. In that case,

it is possible that all liquid funds are used to cover losses or that liquidity needs were planned too

tight. In order to be able to flexibly react to changing liquidity needs, it is important that sufficient

funds be planned, even during the start-up phase. Thus, 5-10% of the investment sum should be held

as liquidity reserve permanently.

4. Over-indebtedness: Many businesses are run on a small equity base. The majority of investments

are funded by debt. If the business becomes unprofitable, debt obligations cannot be covered.

Therefore, it is important that a share of earnings is retained for debt service.


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5. Macroeconomic Conditions: In a cyclical downturn, revenue expectations may not come in

according to expectation. Although this factor does not affect the business in itself, it does have an

impact on profitability, liquidity and leverage. During such periods costs remain constant, but

revenues typically decrease which affects overall profitability. As a result, businesses can go bankrupt

due to macroeconomic conditions, although the relevant indicators of the business look healthy.

6. Location and market: The market of the business and the selection of right potential customers

are important success factors and one of the fundamental decisions that has an impact on the future

prosperity of the firm. Therefore, a careful analysis is necessary. Often start-ups did not consider

that, even when the choice of market may not be wrong at the outset, it may later become so when

economic conditions worsen. This may be due to structural changes or different interest of

customers.

7. Wrong Business Decisions: Often wrong business decisions and difficult situations go unnoticed

for some period, which can lead to a failure of the business. Critical and independent reflections of a

decision are critical factors to determine the value of a management decision and evaluate the

business' profitability. Studies have shown that many businesses fail in their start-up phase because

of management's inability to make sound business decisions, whereas once a business is settled, such

mistakes are very rare. Hence, a critical management instrument is the ability to detect potential

failures and problems and certain key figures can help measure this ability and objectively determine

a decision's chance for success.

Table 4: Risk assessment

Identification of the risk Qualitative risk assessment

Responding on the risk

Priority nr.

Identification of the risk

Reason Potential effects

Probability of occurrence

Impact Strategy Measure

(high / medium / low)

(high / medium / low)

(Avoidance / Reduction / Sharing / Acceptance)

1,2 Insufficient demand

optimistic estimates, external shocks

business failure

high high acceptance promotion, generate customer loyalty


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1,2 Competition behaviour

low entry barriers

business failure

medium medium reduction better services, innovative ideas

1,2 Liquidity cover losses, needs planed to tight

bankrupty high high reduction sufficient funds planned

1,2 Debt majority of investments covered by debt/ small equity base

bankrupty high high reduction retain share of earnings

1,2 Macroeconomic conditions

low revenue affects profitability

bankrupty high high reduction

1,2 Location and Market

wrong market choice

1,2 Business decisions

wrong business decisions

business failure

medium medium reduction critical management instrument, key figures

5.3 Sustainability of the ST/UA

DREC will perform as a local economic development tool, which favoring the conditions for the

creation and growth of novel business activities, contributes actively to the development of the

region where it operates. In this framework, it also has a mission of “public interest” and therefore

needs to be counted as an actor, among others, which can influence regional development.

Therefore, Drama Entrepreneurship Center can benefit Drama not only financially and economically

but also socially by enhancing and facilitating entrepreneurs.

The cooperation within the Logistics Center can bring the following benefits to the city of Drama:

specialization, cost reduction, economies of scale and scope, increased exports, increased

innovation, improve business environment (infrastructure, regulation), funding opportunities and

regional development.


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5.4 Monitoring and evaluation

Table 5: Monitoring and evaluation framework of the ST/UA

Action

priority nr.

Action Name Indicator the activity

needed to

monitor and

evaluate

Responsibilit

y Who will

measure?

Role of the

responsible

person

Data source How it will be

measured?

Target What is the

target value?

Frequency How often will

be measured?

1 Drama

Logistics

Center

(DLC)

Land

appropriation

Drama

Chamber

To look after

the procedures

for land

appropriation

Monitoring

the ministry

records

Land

acquisition

Every month

2 Drama

Entrepren

eurship

Center

(DREC)

Land

appropriation

Drama

Chamber

To look after

the procedures

for land

appropriation

Monitoring

the ministry

records

Land

acquisition

Every month

5.5 Recommendations for the implementation of the ST/UA

Once the Strategic Territorial Urban Agenda (ST/UA) is formed and the interested parties have

decided upon the projects to be implemented in the next programming period, then the real work

and effort is about to begin. This is due to the fact that the most difficult task is not to prioritize the

projects, but to get them started. The preparatory and, afterwards, the starting phase of any project,

especially when we are referring to projects of that magnitude like the urban planning ones, is the

most difficult part due to the fact that people responsible for the implementation, funding and

managing of the whole endeavor should collaborate in order to ensure the acceptance of their

decisions and the transparency within programmed actions.

Hence, the implementation of the agenda comprises many steps since it is a long way from finding a

solution to the problem to actually realize a project. Continuously monitoring and keeping in touch

with the interested stakeholders is a way to keep the implementation of the Agenda on track. In


26

addition, the active operation of the Urban Center can facilitate the process of materializing the

Agenda. The Urban Center is where people can interact, exchange ideas and as a result transmute

the priority projects of the area because the projects are ‘alive’, since people are actually behind

them. Thus, a proposed way to implement the agenda in a sustainable way is to keep people who

actually underpin the projects interested and motivated to keep working on the development of

their region.


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6 Project Fiches: Priority projects corresponding

to each goal / objective of the ST/UA

Priority project nr. 1: Drama Logistics Center (DLC)

Description

The Prefecture’s economic activity is accumulated in the city of Drama, which is the administrative,

social and economic centre of the prefecture. So, the city of Drama is the most appropriate area for

any entrepreneurship support intervention and any business support activity to be located.

The Centre is expected to act as a catalyst for entrepreneurship in Drama, reviving to the city’s life

innovative entrepreneurial activity in sectors that Drama seems to have an edge on. Moreover, it is

expected to host affiliated operators from the most active sectors with the most future perspective.

Consequently, the conditions for a sustainable development will be created directly with a broader

social impact of extra jobs.

According to Europlatforms (2004), “a Logistics Centre is the hub of a specific area where all the

activities relating to transport, logistics and goods distribution – both for national and international

transit – are carried out, on a commercial basis, by various operators”. In this definition, the

operators may be owners or tenants of the buildings or facilities (warehouses, distribution centers,

storage areas, offices, truck services, etc.). To be competitive and follow the free market rules, a

logistics centre must be open, or accessible, to all companies involved in the aforementioned

activities. In addition, it should contain all necessary facilities, be served by a variety of transport

methods (roads, rail, sea, inland waterways, air), and provide high quality of services with intermodal

solutions. Judging by the above-mentioned definition and properties, a logistics center can be

thought of as a cluster. Therefore, the Logistics Centre that will operate in the city of Drama will be

the transportational hub serving not only the local region but a much broader area of Balkans. It will

increase thecompetitivenessoftheaffiliatedcompaniesdecreasingthehightransportation costs,

improve their extroversion and represent a leading role towards the hitherto incomplete

interconnection of the puissant primary sector with the secondary and tertiary sector.


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The construction of new modern premises constitutes the main part of the potential logistics centre,

since it will contribute to the creation of the necessary substructure towards the sustainability and

profitability of the project. The premises will be used for the actualization of the business functions

of the affiliated companies, the service of the needs and demands of their clientele as well as for the

housing of their offices and other business functions (finance, marketing, administrative).

According to estimates, the under construction building will have approximately the following

dimensions: 150m X 120m, area 18.000sqm. It is about a ground floor building specially adapted to

be used as a warehouse having one united storage space and the offices section, which will include

workspaces, catering premises, training facilities and an adequate number of restrooms. Upon

completion of these tasks the logistics center, will create new and modern infrastructure in order to

work productively and efficiently. All the necessary construction, formation and reformation work of

the internal and external spaces will take place.

The buildings contained in the Brownfield are in need of extensive renovation. In fact, there is not a

large number of buildings and the need of extensive renovation due to the poor maintenance

conditions is essential, increases the time and cost for the recovery process. The construction of new

facilities, as already been noted, seems to be a more viable way since the type of the buildings

needed for the smooth and unhindered activity of the Logistics Center does not exist. Additionally,

the extremely small number of the already existing buildings can’t guarantee the future exploitation

of these building since they are found in bad condition primarily because of the poor maintenance

undergone there. Hence, the plans include construction of new premises that can potentially

accommodate future plans and, after taken under consideration all costs, reconstruction of the

existing premises.

The basic infrastructure will include the following:

Ergonomic architectural structure of the facilities.

Asphalt roads with road signs and strict driving regulations within the facilities.

Safe loading and unloading ramps.

Special protection roof for loading and unloading products.

Passive fire extinguishing system.

Smoke detection system and active fire protection.

Water and electric outlets.


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Refrigerators and freezers.

Air conditioning and heating system.

Insulation.

Full and adequate lighting of the working space 24h/day.

Emergency outposts.

Sanitation

facilities.

Office and

catering spaces.

Telephone/i

nternet outlets and

cabins.

Figure 4 : Logistics Centre serving multiple site stores

Location

The Logistics Center will be located at the abandoned premises of the “Ammunition” Brownfield. The

Brownfield is located near the city web at a certain distance though so as the operation of the future

Logistics Center won’t burden the centre of the city. Furthermore, the “Ammo Depot” Brownfield has

been selected as the most suitable solution, as it combines all the main features for supporting the


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development of a Logistics Center, comprising a quite large area capable of hosting additional

activities as well. Its’ central position makes it equidistant from every transport axis in the area and

also adjacent to the local market and enterprises. It is not situated much near to the social habitat

cell, and it is not surrounded by it and so any negative effects - derived from the operation of the

Logistics Center - for the city, can be constrained.

Picture 2: Location of DLC source: own design/google maps

Status

Not active

Timeline

2015-2018

Investments costs estimation


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For the sustainability of the investment two indicators are examined:

1. the net present value (NPV) and

2. the internal rate of return (IRR)

The net present value of the project is calculated equal to NPV = 12.081.889,93 € and the estimated

IRR is equal to 17% ,which is very satisfactory.

Funding opportunities

The ROP East Macedonia – Thrace for the years 2014-2020

Municipal funding

ESF

Horizon 2020

Opportunities for partnership (if applicable)

DLC will be a joint effort of six major stakeholders: a private investor, the Municipality of Drama, the

(Business) Chamber of Drama, the Hellenic Railways, the Drama Development S.A and the local –

regional Technological Institutes.The Private Public Partnership(PPP) is the most widespread and

efficient organizational structure for companies managing Logistics Centres. Share capital is owned

by public and private partners in different percentages. In most cases, however, Public Authorities

constitute a company’s main shareholder. The choice of the PPP model as well as the involvement of

Public Authorities is linked to financial, infrastructure and planning reasons. Building a Logistics

Centre involves – from the very beginning – huge investment for the creation of not only large

warehouses but also all the urban intervention and services. Considering that the Logistics Centre is a

long-term enterprise that, at least in the start-up phase, does not represent a truly tempting business

for private investors, financial support from Public Authorities becomes a key element for its

development.


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Priority project nr.2: Drama Entrepreneurship Center (DREC)

Description

The current challenge of Drama involves the creation of a modern entrepreneurial spirit, which will

consistently reorient the production capacity towards innovation, new technologies and new broader

tourism services, based on the advantages of natural wealth, position and local capacities. Thus, in

the Strategic Agenda of Drama the opportunities deriving from its important geo – economic position

in relation to the Balkans and the Black Sea region, its strong agricultural profile and the

development of an innovative entrepreneurial mentality should be identified, in order to attract

investments in new technologies and innovation.

The Drama Entrepreneurship Center (DREC) will operate providing continuous support to

entrepreneurs and existing SMEs and promoting innovative business ideas and ventures. DREC will

act towards the identification of sectors with a competitive advantage and the development of

regional innovative activities, contributing to overall regional development.

DREC as an innovation-based incubator will be a business development center for new entrepreneurs

and SMEs that intend to develop innovative ideas. There is a subset where the domains of

entrepreneurship and innovation find a common ground, where ideas are both innovative and

profitable, which can be translated in sound businesses addressing specific markets. After all, an

innovation requires entrepreneurship to finally exploit the added value it generates.

DREC is an actor who targets a very specific domain of regional development having as ultimate

beneficiaries of its actions the entrepreneurs with innovative business ideas and the innovative SMEs

of the region.

The buildings contained in the Brownfield are in need of extensive renovation. However, no

contamination has been detected and therefore there are no decontamination needs and relevant

costs. The site is owned by the Hellenic Public Real Estate Corporation and no transfer costs are

expected to be charged. What is more, no significant zoning and planning restrictions are expected.

The Brownfield is part of the urban web of the city and therefore, there is full access to the public

water, sewage and power supply networks, as well as a complete connection to the urban

telecommunications network. There is also a lighting system network for the communal spaces

within the site. However, there is not a central heating or cooling system.


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It is certain that an extensive renovation and restoration of the site will take place turning it into an

appropriate space where entrepreneurs will be hosted in order to promote new entrepreneurship

together with new innovative ideas. The interior design will be a modern modular design with all the

necessary amenities. To be more specific, all internal walls will be removed and replaced by modern

flexible elements and the renovation and restoration will include tasks such as, the ripping and lining

of the floor, inside and outside painting, roof restoration where necessary, extra electric and water

outlets, installment of heating-air conditioning and ventilation system, sanitation facilities etc.

Furthermore, the surroundings will be cleared and transformed according to business standards

forming a suitable environment for the affiliated operators.

The buildings will be adjusted to future needs. There will be common areas that can be shared, for

instance; conference rooms, library, kitchen and a business service center. DREC’s building and

surrounding area will be secure so that entrepreneurs can work day or/and night. In addition,

adequate parking places are foreseen in the development plans.

Picture 3: DREC location source: own design/google maps


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Location

The DREC and the incubator will be located at the abandoned premises of the ANDRIKAKI Brownfield.

The Brownfield is located at the centre of Drama, therefore it is part of the urban web. The

ANDRIKAKI Brownfield has been selected as the most suitable solution, as it combines all the main

features for supporting the development of a Business Incubator or a Business Support Centre,

comprising a quite large area capable of hosting other activities as well. Its central position makes it

equidistant from every transport axis in the area and also adjacent to the local market and

enterprises. Furthermore, it is situated near the social habitat cell, having a distance of only 1,2 km

from the city center, but not surrounded by it and so any negative effects - derived from the

operation of the business center - for the city, can be constrained. Moreover, the proprietary status

of the Brownfield and its maintenance level reduce the time and cost required for the recovery

process.

Status

Not active

Timeline

2015-2018

Investments costs estimation

For the sustainability of the investment two indicators are examined:

1. the net present value (NPV) and

2. the internal rate of return (IRR)

So according to calculations, the net present value of the project is calculated equal to NPV =

1.404.348,24€ and the estimated IRR is= 16%,which makes the project desirable.


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Funding opportunities

The ROP East Macedonia – Thrace for the years 2014-2020

Municipal funding

ESF

Horizon 2020

Opportunities for partnership (if applicable)

DREC will be owned by a Public Private Partnership company (DREC S.A.), which will be established

exclusively for that reason. This company’s mission will include the projects of renovating the

necessary premises, establishing, developing and managing the business entrepreneurship centre

and the incubator. The shareholders of DREC S.A. will be the following: The Municipality Authority of

Drama (owner of the site), the Chamber of Drama, the Center of Business and Technology

Development of Eastern Macedonia and Thrace, the Drama Development Company S.A., the Institute

of Technology of Drama and a private investor.


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7 The Poster Plan

The Poster Plan represents the summary of the ST/UA in Drama.


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8 Conclusions

The importance of STATUS project lies in the fact that the first big step towards the implementation

is been made; local authority and community representatives have been put together in a ‘working’

group, namely the Urban Task Force, to manage and monitor the projects in the Agenda and any

other projects that may result from the interaction within the Urban Center. This brings what people

think and want regarding their city in the spotlight and at the same time, makes them responsible for

the decision making process and the implementation phase of the projects. Moreover, the projects

that are most urgent for implementation have already been included in the strategic agenda and will

be considered in the next programming period. This allows for better territorial/urban programming

and more efficient absorption of European funds.

Community cohesion and interaction was a major bet placed by the STATUS project and judging by

the results so far, it seems that the STATUS project won that bet.

9 References

1. D 4.2 Survey on Territorial Governance and Urban Problems-Drama Chamber

2. D 3.2 Operational Analysis on Territorial Partners- Identifying major urban issues at

urban/territorial partner scale

3. D 4.3 Draft Strategic Territorial/Urban Agenda- Drama Chamber

10 Annexes

List of participants -1st workshop

List of participants -2nd workshop

drama municipality strategic agenda

Documents