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Desolation of inner cities: why municipalities are now taking a risk

2020-09-12T16:16:48.319Z


Many municipalities are taking the risk to stop the city center from becoming deserted: They buy or rent orphaned shops and department stores and then lease them cheaply. Is this a good idea?


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City-Manager Bieberle in dog boutique "Von & Zu"

Photo: Tim Wegner / DER SPIEGEL

Shortly before half past seven in the evening, Martin Bieberle stands proudly between dog pillows and leather collars.

Bieberle, in a light gray suit and blue T-shirt, is City Manager for the city of Hanau.

The opening of "Von & Zu", a boutique for upscale dog supplies, is a special date for him too.

Gerry Weber last resided in the shop, a prime location in the city center.

Because the area was empty, the city of Hanau took action: It now pays a few thousand euros in rent to the owners every month - and sublet the shop to founders for three months at a time.

This is called a pop-up store in new German.

It is an attempt to stop the deserted shopping streets.

In fact, however, it is state-subsidized retail.

The rent is based on the turnover, in the worst case the city is left with the costs.

City Manager Bieberle doesn't care about that at first, he is already looking for new, "really good ideas" to implement more such store concepts.

Not only in Hanau, up and down the country, cities and municipalities currently want to revitalize their corona-weakened centers.

And are ready to take financial risks for this.

Even before Corona, the municipalities had accumulated almost 132 billion euros in debt.

The sum is likely to have jumped again due to the falling trade tax.

But low interest rates, lavish rescue packages, but above all the fear of the city center bleeding out, make some town hall chiefs dream of the self-managed pedestrian zone these days: owner-managed boutiques and upscale restaurants instead of one-euro shops and amusement arcades.

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Source: spiegel

All business articles on 2020-09-12

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