URBAN REGENERATION Implementing a Business Concept

October 2016

Typical problems in real estate development

1. Difficulty in identifying applicable planning regime;

2. Principle of non-deterioration of standard of living conditions (Council of State doctrine on planning acquis);

3. Insecurity as to applicability of uses of land and building terms and conditions;

4. Inadequate planning instruments.

Typical problems in real estate development 1. Difficulty in identifying applicable planning regime

STRATEGIC PLANNING

National Planning Frameworks

Regional Planning Frameworks (in respect of Attica, Athens Regulatory Plan/ARP)

REGULATORY PLANNING

Local Spatial Plans (formerly: General Urban Plans or GUPs)

Detailed Road Plan (formerly: Planning Studies)

There is no secure method of identifying the building terms and uses of land applicable to a particular area (multitude of administrative acts, often with no consolidation/codification).

Typical problems in real estate development

2. Planning “acquis” According to the constant position of the Council of State, new city

planning arrangements must not entail deterioration when compared to the predecessor urban planning regime, by reference to the “teachings of common experience”.

Exception: deviations may be justified by overriding “special planning imperative”.

A trend to reconsider/subdue a strict implementation of the doctrine has been observed over most recent 3-year period, possibly reflecting the Council of State’s receptiveness to the need for economic exploitation of real property and support to economic growth (and consequent direct or indirect benefits for the State).

Typical problems in real estate development

3. Insecurity as to applicability of uses of land and building terms and conditions

Applicable provisions are subject to review (cassation) by the Council of State. Potential shortcomings may have not been identified timely (e.g., in the course of processing of normative decrees by the Council of State).

4. Inadequate planning instruments Time-consuming procedures are usually required, which involve various agencies/stakeholders, but do not assure legal validity of rules proposed to be enacted.

Urban Regeneration

Renewal limited to public/common use areas (expansion or upgrade of areas in common use, infrastructure, etc.).

Revitalization by introducing changes to (inter alia) building uses and facades (e.g., age of buildings, energy efficiency upgrades, cultural heritage).

Radical revamping, by re-building an entire area (or city block), involving demolition of existing structures, change of uses and identity/utility of buildings.

Legal Framework

Law 2508/1997 contains special provisions on urban regeneration; however, these have been applied to an extremely limited extent.

A Local Government Organization (LGO) must be the initiating entity (a private investor may only apply to the LGO);

«Classic», 3-stage implementation process (preliminary proposal,

regeneration programme, renewal planning design);

Limited means and incentives (right of first refusal of initiating LGO

to purchase real property, determination of zones of restoration,

expropriations, right to transfer Building Co-efficient, etc.)

Experience from privately–initiated regeneration

Double renewal of Votanikos – Eleonas (Panathinaikos Stadium)

Experience from privately–initiated regeneration

Double renewal of Votanikos – Eleonas (Panathinaikos Stadium)

Law 3841/2006 determined the applicable building terms and uses of land, and modified the road plan for the area (common use areas, unification of city blocks, creation of new city block) in the areas of Ampelokipi and Eleonas.

The Council of State invalidated the Ministerial Decision on approval of environmental terms and the building permit, but did address a number of legal issues and identified the manner for resolution of the shortcomings diagnosed.

Experience from privately–initiated regeneration

Mikro Kavouri (Astir Palace Vouliagmeni) A draft Presidential Decree was submitted for processing, relating to

the approval of a SPREADeP, amending uses of land in the area, with a view to also allowing for residential development.

The Council of State held that the addition of a large number of residences constitutes deterioration of the natural, technical and cultural environment, on the basis that the locality would convert into a residential area with mixed uses. The Court also held that the expansion of the residential area of Vouliagmeni was unjustified (and, hence, not permitted pursuant to Section 24 of the Constitution).

The new SPREADeP plan was approved and sets forth improved terms of protection of the environment, as well as limited residential uses.

Re-development of former Hellinikon airport area

Re-development of former Hellinikon airport area

1. Law 4062/2012 specifies objectives pursued through development of the property (contribution towards attainment of fiscal targets, creating a world-class tourism hub, urban contact with the seafront).

2. Only basic guidelines are set (general categories of uses, average building co-efficient).

3. An urban planning and environmental permitting process is envisaged which includes:

Issuance of a Presidential Decree for the approval of basic parameters (=GUP)

Issuance of Joint Ministerial Decision(s) to refine such parameters.

Accelerated procedure through special one-stop-shop agency (Hellinikon Office).

Special Spatial Plans (article 8, Law 4269/2014)

1. New and modern instrument catering for areas regardless of administrative boundaries, which may host plans, works and programmes: Of supra-local scale; or Of strategic importance; or Requiring special regulation of uses of land and building terms.

2. By reference to hierarchy, placed at the same level as and LSP (formerly GUP) and, consequently, may amend a GUP.

3. Defines uses of land and building terms.

4. May be launched at the initiative of the project implementation body (i.e., private investor).

5. Is approved by means of a Presidential Decree which also serves to approve environmental terms (on the basis of a Strategic Environmental Impact Study).

6. May also incorporate the Detailed Road Plan, if the initiating party is the owner of the affected area.