Gemeente Hoorn Mitigates Urban Planning Risk with Palisade’s @RISK
London, Aug. 18, 2015—Local government planners from Gemeente Hoorn (the City of Hoorn) are using Palisade’s leading risk analysis tool @RISK to mitigate financial risk as a result of urban planning within the region.
As Amsterdam’s population continues to grow, the City of Hoorn has become a viable proposition for those looking to live outside the bulging city. This has meant expansion for Hoorn, with the city looking to outlying agricultural land as a resource for residential requirements. This ongoing expansion means Gemeente Hoorn today has land development in its DNA, however more recently it has learned that this development process is not without risks. With the growing popularity of bigger cities and gentrification in recent years, competition has become harder, and it is more difficult to sell land to real estate developers willing to build houses outside of the city.
Managing and forecasting financial outcomes for investment into new districts within the City has become crucial, as it becomes more complex to manage costs within competitive environments. Simon Metselaar, Financial Urban Planner at Gemeente Hoorn, commented, “When we look at developing any agricultural land into residential housing areas, there are big investments involved. With these investments we also have to deal with financial risks. In order to cope with these risks we have to determine the financial buffers, and that’s where @RISK comes into play – it offers us the ability to determine the buffer we need.”
Transforming agricultural land into residential housing areas is a complex and expensive process for Gemeente Hoorn. The council needs to create the fundamental elements of any new residential area, which includes streets, bridges, parking lots and city lights – everything that comes with designing any new city. The investment can be around 200m Euros, so managing the financial risk is essential.
With the use of @RISK, Gemeente Hoorn is able to mitigate the risks associated with these burgeoning projects, offer advice to the council, and allow them to make decisions that will positively impact the community.
Metselaar concluded, “@RISK is a simple, Excel-based tool that is instrumental in the work we do. It solves a very complex task quickly, and is core to our work in dealing with the recalculation of our financial buffers on an annual basis.”
Palisade Corporation is a software developer and solution provider that produces decision support tools for professionals in many industry sectors. The company was founded in 1984, and at present more than 400,000 people use Palisade’s software in fields that range from finance to oil and mineral exploration, real estate to heavy manufacturing and pharmaceuticals to aerospace. Its software is used by more than 90 percent of Fortune Global 500 companies. Sample clients include Royal Dutch Shell, Petrobras, Procter & Gamble, PEMEX, China Minmetals, Mitsubishi, Merck, Unilever, Allianz, Total, Raytheon and BHP Billiton, as well as top business schools around the world.