Economic benefits of revitalization: the case of the «Promprylad. Renovation» project

Abstract

The article examines the economic, social, and environmental advantages of revitalizing industrial facilities, using the example of the “Promprylad.Renovation” project in Ivano-Frankivsk. It is demonstrated that, under contemporary conditions of globalization and post-industrial transformations, revitalization is not merely an architectural practice but also a comprehensive managerial strategy that combines the preservation of historical heritage with the development of new economic and cultural functions. It is noted that traditional approaches – conservation and restoration – do not meet current challenges, as they fail to ensure the integration of such facilities into the socio-economic environment. Particular attention is paid to the financial model of “Promprylad.Renovation” which is based on the concept of phased investment. This approach makes it possible to minimize risks, gradually scale the project, and reinvest profits from the early stages. The article demonstrates that the application of Lean Startup principles through the creation of a minimum viable product has become a key factor in attracting investors. An important element of the model is the integration of ESG principles, which involves allocating 30% of profits to cultural and environmental initiatives, thereby shaping a positive social image of the project. The study also emphasizes the environmental solutions implemented within the revitalization process, including the preservation of “embodied energy” through the use of existing structures, the implementation of air heat recovery systems, and the development of a circular economy in waste management. These measures contribute to reducing anthropogenic pressure on the environment, increasing energy efficiency, and fostering a culture of responsible consumption among residents. The social component of the project is manifested in the creation of new jobs and the development of educational and cultural spaces, which enhances the quality of life of the community. Thus, the revitalization of industrial facilities emerges as a multidimensional process that combines economic efficiency, environmental responsibility, and social inclusion. The case of “Promprylad.Renovation” demonstrates that abandoned industrial areas can become drivers of sustainable urban development, ensuring a harmonious combination of historical authenticity and contemporary needs. The obtained results have both theoretical and practical value for the development of a universal revitalization model that can be applied in Ukrainian cities in the context of post-war recovery and global urban transformations.