Read the following passage and answer the item that follows. Your answer to this item should be based on the passage only.

Preserving a city's old quarters purely as heritage sites affects their economic potential and the livelihoods of the traders and residents who depend on them. There is also a conflict between using such a quarter only for residents' daily commerce, for large scale commercial redevelopment, or strictly for conservation as a heritage precinct. Redevelopment driven by commercial interest can displace long standing communities and erase the very character that gave the quarter its value, while strict conservation without any economic activity can leave buildings unmaintained and eventually decaying. These conflicts are especially sharp in fast growing cities, where the dependence of small traders on these old markets for their livelihood is significant, and commercial redevelopment carries the potential to boost municipal revenue substantially.

With reference to the above passage, the following assumptions have been made:

1. No city needs to depend on its heritage quarters to boost municipal revenue.

2. Fast growing cities need to share the economic benefits of redevelopment with the traders whose livelihoods are affected, so as to prevent displacement.

Which of the above assumptions is/are valid?