German Council Interview with Harald Ortner

Thank you, Hanau!

The open letter from Hanau's mayor Claus Kaminsky to Minister Geywitz raises the question of how effective the federal government's funding programs are. GCSP board member Harald Ortner was at the inner city congress in Potsdam and, as a discussant and participant, noticed the current mood in the municipalities and the criticism. We asked him about it.

The traffic light government has been in power in Berlin for a good six months and for the first time there is a Federal Minister for Housing, Urban Development and Construction again in the form of Klara Geywitz. On the one hand, this is pleasing for the real estate industry, but on the other hand, the open letter to Klara Geywitz from the mayor of Hanau is clearly critical. How do you assess the situation?

In response to the letter, the Minister clarified in her opening speech to the Congress that although the funding amount had been increased fivefold by the previous government, the amount needed to process
Unfortunately, the staff required to process the funding applications had not been hired. She promised the municipalities that this matter would be remedied quickly.

Is there a quick way for cities to receive funding?

Unfortunately, this is not the case, as the applications are so complex that most
Small and medium-sized towns do not have the personnel with the expertise to
This then leads to the fact that the large cities with sufficient skilled personnel, who actually do not need the money at all or need it less than those mentioned above, apply and then, when the funding is increased, receive the money.

Would it help small and medium-sized towns if the applications were simplified?

Unfortunately not, as many cities lack the know-how to deal with the problems created by the pandemic and the Ukraine crisis. There are some exceptions such as the
City of Hanau, who have mastered the entire range of instruments, but only because those responsible take good advice from third parties and also have an open ear for the special topics and are in constant dialogue with all stakeholders in the city center.

Nevertheless, many projects were reported at the congress that are to be implemented in city centers. How do you assess the mood?

Surprisingly, many municipalities assume that what is approved will be built. There is a lack of insight into the mechanisms of the market, which is also due to the fact that project developers are currently often not telling the municipalities the truth, as they are still hoping that everything will turn around quickly. On the other hand, there is often a certain lack of ideas when it comes to getting private individuals, whether property owners or operators, to invest. The fact that a lot can be achieved with little stimulus is shown, for example, by
the city economic stimulus program of the city of Hanau, which, with a grant of only 1,5 million euros, has stimulated investments in the city center totaling 12 million euros.

How do you view the near future?

It is astonishing that the ingenuity of some mayors has increased during the pandemic, as they have learned to get things started even with limited resources. The terms used at the inner city congress - such as folding chair sessions, accomplices, city fans - are evidence of this.

The self-confident and open, objective dialogue between the city of Hanau and the Federal Minister of Construction makes it clear that it depends on personalities to push things forward. More initiative from Hanau would do many small and medium-sized towns good in the coming months. And the unbiased and goal-oriented dialogue with all stakeholders will hopefully continue to prevail.

As the German Council of Shopping Places, we continue to create a network platform for the commercial real estate industry, retail, cities and politics. The response is encouraging.