|Name of instrument||Allocation of municipal compensation funds for redevelopment of brownfields (= Landeszuweisungen zur Nutzbarmachung von Brachflächen)|
|Spatial level||federal state|
|Subtype||Subsidies and local business development|
|Description||Municipal compensation funds are funds that municipalities receive from federal state level in Germany, refunding them for expenditures that are not cost-covering, as it is frequently the case for brownfield development. That means that municipalities are compensated for brownfield development costs that exceed development costs for comparably sized greenfields.|
|General objectives||Supporting and providing incentives for municipalities to mobilise their brownfield potentials.|
|General objectives keywords||brownfield development; financial incentives; state subsidies; ; ;|
|Responsible||Federal state/Province authority|
|Stakeholder Involved||Local authority/Municipal council;|
|General assessment of strength and weakness||Strength: Compensation for positive external effects of municipal land policy.
Weakness: Funds are insufficient for effectively creating incentives.
|Date of entry||29.01.2007|
|Type of monitoring||Report basing on quantitative indicators|
|Preconditions for implementation|
|Best practise example||Brownfield Development Compensation Fund, Federal state of Northrhine-Westfalia|
|Example Abstract||In its law on compensation payments between federal state and municipality level, the state of Northrhine-Westfalia has set up 2.5 Mio EUR of funds for municipal brownfield development (http://www.im.nrw.de/gfg/GFG2002.htm, § 23)|