A recent rapid political and economic changes in many eastern European countries demand corresponding changes in the town planning system, and especially in the development control and urban management process. For instance, at a present many historic city and town cores still remain relatively intact in their original form, but have become the target for development pressure. How should this pressure be channeled to achieve enhancement of the urban qualities of those areas (especially barracks and old factory sites), without jeopardising their competitiveness for attracting business and employment. This paper discusses the outcomes of research carried out at the Urban Planning Institute of the Republic of Slovenia from 1995 to 1998, on the development of appropriate methods for the appraisal and promotion of design quality in relation to economic viability in city development projects especially for an urban renewal. The elements for the assessment of urban design quality derive from the basic principles of good urban design such as identity, permeability, legibility visual appropriateness, robustness, visual and symbolic richness, amongst others. The simplified computerised model for assessing financial viability is based on building costs and market value of the investment, and shows the profitability of the development. It can be a useful tool in both assessing design viability, and for determining extra profit or ?planning gain? in the planning process negotiations such ?surplus? can be used for satisfying local needs (e.g. additional programs, design of public spaces). This method for appraisal and promotion of design quality in relation to economic viability has been examined through an assessment of the competition projects for the renewal of the Rog factory area in the city centre of Ljubljana. This case study has revealed the need for a clear strategy for future city development, with marketing guidance and policies for positive planning to achieve better vitality and viability for the city as a whole. Subsequently, the research examined successful initiatives for the promotion of urban design on a national and local level of the planning process identifying the most important issues affecting city design in the market economy, such as partnership arrangements, joint ventures and city-entrepreneurs. The paper briefly discusses: salient features of the current planning system in Slovenia and the on-going changes relating to the new approaches to town planning; the proposed method for appraisal and promotion of design quality and economic viability of urban environment; the results of the examination of this method applied to a case study - the renewal of an industrial site in the city centre of Ljubljana.
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