Andreas Zettel: “The new Spatial Planning Act requires active management of development priorities”

Luzern, March 2020

With the designation of development centres (ESP) in the cantonal structure plan, locations have been identified in whose promotion and development the canton has a primary economic interest. An interview with Andreas Zettel, Deputy Director and Head of Corporate Development at the Lucerne Economic Development Agency, on the status of these developments.

Mr Zettel, the canton of Lucerne, all Lucerne municipalities and network partners from business and industry are making a financial and non-material commitment to Lucerne as a growing business and residential location. How do you rate their success?
If we look back over the last few years, we can see the dynamic development of Lucerne as a business location. Between 2012 and 2017, the number of companies and jobs grew at an above-average rate compared to the rest of Switzerland. Over 2,000 companies and more than 15,000 jobs were created across the canton during this period. That is a national record. The joint efforts have therefore paid off. Last year, the number of companies again increased by over three per cent.

What makes the canton of Lucerne particularly attractive?
I would emphasise the attractive combination of various location factors. Ultimately, this is what defines the quality of the location. In addition to the coherent hard factors such as low taxes, availability of labour and good accessibility, the canton of Lucerne is also scenically attractive and culturally exciting. Many tourists visit the Lucerne region every year. The tourist offers
the local population also benefits directly from the tourist offers.

Back to the hard facts. Are there still areas available for companies to set up and develop?
The market has indeed changed considerably in recent years. The availability of building plots and developed workspaces is a key challenge for the future. The new Spatial Planning Act sets tight limits. Zoning is only possible under certain conditions. As a result, the focus in future will clearly be on inward development and better utilisation of land. This also affects companies to a large extent, especially local SMEs. The property industry in particular is called upon to create new, attractive and affordable offers for these businesses.

Where do you see local opportunities for new businesses?
Attractive new areas are being created in the new city centres of Lucerne South and Lucerne North. In the centre of the city of Lucerne, development is limited in terms of space, i.e. development here is taking place within the framework of site developments, which have to fill the last gaps between buildings and integrate into the existing city. From a regional perspective, this means that the city of Lucerne is expanding as a functional area and new, attractive city centres are emerging in the surrounding municipalities, which are excellently developed and can offer a new urban quality. Personally, I am a little concerned about the purely employment zones, as these have often been put to other uses in the course of inner-city development without any replacement. These areas are then lacking in commercial space.

So these areas are a scarce commodity?
Well, this impression can indeed arise. However, a closer look reveals that there are still a considerable number of plots of land in the canton of Lucerne that are zoned but not yet developed. The question here is whether the landowners want to develop at all. We are noticing a certain tendency towards building land hoarding, which is clearly not in our interests. However, sometimes there is not only a lack of will, but also simply a lack of knowledge about how these areas could be developed. The prime sites in particular need to be developed very cleverly and sustainably so that the next generation can also benefit from them to the maximum.

What is the development strategy in the canton of Lucerne?
Twelve so-called cantonal development centres (ESPs for short) have been defined in the current structure plan. These are large-scale employment areas in well-developed locations. The aim is to achieve qualitative development, whereby the coordination of settlement and transport also plays an important role. The ESPs are a central element of Lucerne’s location policy and an important instrument of joint economic promotion by the canton and municipalities.

Where are these development centres located?
Due to their economic potential, they are orientated towards the main transport axes of the canton of Lucerne. They are mainly located in areas with good transport links, both by car and by public transport.

What is the status of these development centres?
Very differently. While the Lucerne South and Lucerne North areas in the Lucerne city region, for example, are relatively advanced and are already being implemented, there is considerable potential for catching up in the two regional centres of Hochdorf and Willisau, for example. It is these areas that will increasingly become the focus of investors and developers in the coming years.

Where can I find out more about the individual development centres?
Investors and interested companies can get in touch with us, as we have a good overview of the status of these areas and know all the contacts. In addition to the local municipalities, the four regional development organisations in the canton of Lucerne are also key to the development of these ESPs. These are LuzernPlus, Sursee-Mittelland, Region Luzern West and Idee Seetal. The positive interaction between the state and the economy is a core element of our joint economic policy. We want to further improve this. ■

The Lucerne Economic Development Agency

Lucerne Economic Development is committed to promoting Lucerne as a growing business location. As a ‘one-stop shop’, Lucerne Economic Development is the focal point for all contacts and the origin of innovations and projects. Its tasks include the areas of promotion, relocation, business development and new business development as well as the expansion and maintenance of the network with the canton, municipalities, business and organisations.

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