Standard land values/compensation amounts

Since September 2016, the special urban development law (redevelopment law) has applied to a clearly defined district in Radebeul West with the publication of the redevelopment statutes. The redevelopment law is a special right that is limited in terms of subject matter, time and space and is part of the German Building Code (Sections 136 to 164 BauGB). It enables the use of extensive subsidies within a short implementation period (until the end of 2023). With the help of these subsidies (proportionately from the federal and state governments), measures are carried out in the public and private sectors of the redevelopment area. They will bring about structural changes in the development and utilisation of the properties as well as in the surroundings of the entire redevelopment area. The location thus becomes more attractive, both for commercial and residential use, and leads to rising land values on the property market.

If an increase in land value is actually achieved through the use of public financial assistance, it is a federal law that property owners in the redevelopment area must pay equalisation contributions. According to the Building Code (Section 154 (1) BauGB), the owner of a property located in a formally designated redevelopment area must pay a compensation amount in cash to finance the redevelopment, which corresponds to the increase in the land value of his property caused by the redevelopment.
The Building Code generally obliges the municipality to levy the equalisation amount, although the city of Radebeul has no discretionary powers. This amount is only due after completion of the redevelopment, i.e. after the public announcement of the cancellation of the redevelopment statutes. To this end, the city council of the large district town of Radebeul passed a resolution on 20 March 2019 (SR 17/19-14/19), according to which it undertook not to repeal the statutes on the formal designation of the redevelopment area "Zentrum Radebeul West" before 31 December 2023.

The basis for calculating the equalisation amount is the increase in land value of a property caused by the redevelopment. It is calculated from the difference between the - generally lower - initial value and the - generally higher - final value of the land.

Redevelopment-related increase in land value = final value - initial value

For the "Zentrum Radebeul-West" redevelopment area, the expert committee for land values in the district of Meißen determined the zonal, redevelopment-related land value increases in an expert opinion dated 29 November 2018. The zonal initial values (as at 1 January 2022) were published in the geoportal of the district of Meißen as part of the standard land value map for the entire district. The redevelopment area is divided into different value zones. Properties with a comparable or similar location, usability and layout are summarised in one zone.

Procedural discount for early redemption of the equalisation amount

Property owners have the option of minimising the amount of the equalisation amount by paying it off early. This is because the Building Code gives the municipality the option of allowing the equalisation amount to be redeemed in full up to one year before completion of the redevelopment. For this purpose, a voluntary agreement is concluded between the property owner and the municipality, the so-called redemption agreement. This agreement has a number of advantages:
By concluding a redemption agreement, the owners gain legal certainty regarding the equalisation amount. Subsequent levies are excluded. The purchase price review by the city is not required for the resale of properties. The income generated by the redemption can be used for further measures in the redevelopment area. In contrast, the equalisation amounts that are levied by notice after the cancellation of the redevelopment statutes must be returned to the funding bodies.
This is also associated with a financial incentive, as the city can grant a procedural discount of up to 20% on the equalisation amount. The city council also passed a resolution on this on 20 March 2019, according to which this discount is staggered as follows until the end of the urban redevelopment:

• 20 % until 31.12.2020
• from 01.01.2021 until 31.12.2021 15 %
• from 1 January 2022 to 30 June 2022 10 %
• from 01/07/2022 to 31/12/2022 5 %

>> SR 17/19-14/19

If you have any questions about the redevelopment areas in the city, please contact the staff at the City Planning and Building Supervisory Office. We will be happy to advise you.