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Sport Mega-Events and Local Development: the impacts of 2014 FIFA World Cup in the
East Zone of São Paulo
Prof. Dr. Eduardo A. C. Nobre FAUUSP/NAPPLAC/LabHab
II International Conference Mega-events and the City
Rio de Janeiro, 27-30 Abril 2014
• Introduction
• The East Zone Expansion
• The East Zone Today
• Local Development Projects
• The 2014 FIFA World Cup
• What would the legacy be?
São Paulo Metropolitan Region
8,501 sqkm (10% of national territorry) 39 municipalities; 2,210 sqkm of urbanised area.
19.7 million inhabitants (10.3% of national population),
11.3 million living in the capital, the MSP – Municipality of São Paulo.
Gross domestic product was US$ 421 billion, 19% of GNP (74% services and 26 % industry).
Uneven development: 63% of households earn less than 5 MW (USD 1,620) and only 6% earn more than 20 MW (USD 6,480)
4
Uneven and segregated urban space
The middle and high incomes strata occupied the areas provided with jobs, accessibility, infrastructure and services
The low income sectors have been “evicted” to less privileged area considering these factors on a great level of precariousness and inadequate living
conditions in central area slums, favelas and peripheral illegal settlements
The East Zone Expansion
• The East Zone was the main low income population expansion axis.
• Geographical features (low and wetlands)
• EFCB construction (Brazil Central Railway linking São Paulo to Rio de Janeiro)
• Road works and bus services stock of land for low-income peripheral settlements
• In the 1970s, major large public housing development projects due to its cheaper land.
• Lack of efficient public transport, infrastructure and public facilities (only in 1988, metro lines arrived to the area).
Public Housing Developments. Source: PMSP (www.infocidade.prefeitura.sp.gov.br)
The East Zone today
• 3.6 millions inhabitants (32.4% of city population)
• 291 sq km (20% of the area)
• Population Density 125 inhabitants/hectare (MSP = 74 inhab/ha)
• Low-income population concentration
• Low concentration of jobs: 25 to 50 jobs/hectare (City Center more than 250 jobs/hectare)
Source: PMSP (www.infocidade.prefeitura.sp.gov.br)
Income concentration. Source: PMSP (www.infocidade.prefeitura.sp.gov.br)
Formal jobs and illiteracy concentrations. Source: PMSP (www.infocidade.prefeitura.sp.gov.br)
Metropolitan transport system travel demand. Source: Metro-SP apud. Santo Amore, Reis e Pereira, 2013.
Local Development Projects
• Attempts to bring jobs and economic activities to the area:
– 1981 Land Use Act transformed rural land into industrial districts;
– 2004 Rio Verde Jacu Urban Operation Act established zoning incentives along the new ring road under construction;
– 2007 Incentive Zoning Act established tax exemptions for economic and job generating activities in the area
– 2011 The area was chosen to host the Corinthians Arena defined by FIFA as the opening field for 2014 World Cup
Corinthians Arena
• stimated cost R$ 850 millions (US$ 380 millions) – 50% from tax exemptions
– 50% from BNDES loan
• Costs arrived to R$ 1.2 billions (US$ 540 millions)
Road works cost
• ± R$ 312 millions (US$ 143 millions)
• City Hall and São Paulo State Road Development Co.
What would the legacy be?
• The impacts of 2014 World Cup made us consider what could it legacy be.
• Will it finally bring jobs and economic activities for the area?
• And if it brings, will them be appropriate for local population?
• Let´s consider some facts!
• Despite incentives to attract job generating activities, tertiary sector new developments (hypermarkets, car dealers, building material stores) creates little qualified jobs.
• Infrastructure works were restricted to Jacu-Pêssego Avenue and around Itaquera Institutional Pole.
• “Industries complain of narrow streets and lack of sewage” – “Despite of being just 2 miles away from Jacu-Pêssego Avenue, industrial district roads are narrow and sloping, hindering maneuvers ....”
• “In eight years , only 5 companies had tax incentive… Without infrastructure , companies are not coming... Local entrepreneurs complain of narrow streets and lack of sanitation”
• “Worse still, the finishing of Jacu-Pêssego Avenue has contributed to worsen circulation conditions as it brought huge truck traffic to the area.”
• “Lourival Mariano Filho, owner of Petnik Serigraphy Services, which employs 30 workers, says the transit caused him to move his company away from the industrial pole.” ESP , 14/12/2012
• Increased land speculation, enhancing its dormitory town character, but with a gentrification process.
• “World Cup Stage, Itaquera has become developers bet” – “Prices for existing homes rose .... With the major part of the stadium and public works built, the region has become a bet for developers”. FSP , 03/17/2013 .
• “Developers hold releases in Itaquera to sell them more expensively” … land prices have climbed after the announcement that Itaquera would be the stage of World Cup… they went from R$200/R$300 (per square meter) to R$ 1,000/R$ 1,500.” FSP , 03/17/2013 .
• Favelas removal near the Arena guarantee real estate development investment return
• Road works in progress and the implementation of the Rio Verde Linear Park resulted in the removal of 601 families from Favela da Paz and Miguel Ignacio Cury.
Residential aditional building rights consumed by Subprefecture and district. Source: PMSP/SMDU, 2014. (http://outorgaonerosa.prefeitura.sp.gov.br/relatorios/RelEstoqueNaoResidencial.aspx)
Subprefeitura DistritoTotal Estoque
(m2)
Comprometido
(m2)
Disponível
(m2)Consumido
BT MORUMBI 30000 29998,48 1,52 100%
CL VILA ANDRADE 250000 249147,32 852,68 100%
IP SACOMA 120000 120000 0 100%
IP IPIRANGA 110000 109995,84 4,16 100%
IP CURSINO 110000 109984,13 15,87 100%
LA LAPA 75000 74999,76 0,24 100%
LA JAGUARE 32000 31999,5 0,5 100%
LA VILA LEOPOLDINA 190000 189981,51 18,49 100%
MG VILA MARIA 80000 79902,05 97,95 100%
MG VILA GUILHERME 40000 38645,49 1354,51 97%
MO AGUA RASA 100000 99999,61 0,39 100%
MO MOOCA 160000 159997,97 2,03 100%
MO BELEM 50000 49998,69 1,31 100%
MO TATUAPE 350000 194001,3 155998,7 55%
SE CAMBUCI 20000 19999,92 0,08 100%
SE BELA VISTA 50000 49973,49 26,51 100%
SE LIBERDADE 25000 24951,06 48,94 100%
IQ CIDADE LIDER 25000 3889,51 21110,49 16%
IQ ITAQUERA 100000 11966,43 88033,57 12%
IQ JOSE BONIFACIO 80000 0 80000 0%
IQ PARQUE DO CARMO 10000 0 10000 0%
Subprefeitura Distrito Total Estoque (m2) Comprometido (m2) Disponível (m2) Consumido
SE BELA VISTA 40000 40849,59 -849,59 102%
SE CONSOLACAO 60000 57666,26 2333,74 96%
SE SANTA CECILIA 30000 27612,7 2387,3 92%
SA SANTO AMARO 100000 99967,52 32,48 100%
SA CAMPO GRANDE 50000 49918,58 81,42 100%
SA CAMPO BELO 20000 18327,79 1672,21 92%
PI ITAIM BIBI 90000 89999,92 0,08 100%
PI JARDIM PAULISTA 50000 43169,68 6830,32 86%
MO MOOCA 40000 39777,42 222,58 99%
MO BELEM 40000 20415,22 19584,78 51%
MO TATUAPE 120000 56835,83 63164,17 47%
LA LAPA 20000 20000 0 100%
LA VILA LEOPOLDINA 60000 60000 0 100%
LA JAGUARE 8000 7999,38 0,62 100%
IQ CIDADE LIDER 5000 2131,33 2868,67 43%
IQ ITAQUERA 20000 0 20000 0%
IQ JOSE BONIFACIO 10000 0 10000 0%
IQ PARQUE DO CARMO 3000 0 3000 0%
Non Residential aditional building rights consumed by Subprefecture and district. Source: : PMSP/SMDU, 2014. (http://outorgaonerosa.prefeitura.sp.gov.br/relatorios/RelEstoqueNaoResidencial.aspx)
• So, considering present situation, it seems that 2014 FIFA World Cup legacy for Itaquera will be a gentrifyied neighboorhood, expelling lower-income strata for further on, without the increase of qualified jobs opportunities.
• As far as it seems, it is only opening a new frontier for real estate capital expansion.
