The Estepona City Council will have to pay 1.2 million euros, plus imposed interests, for a judicial ruling from the Superior Court of Justice of Andalusia (TSJA) resulting from an irregular urban planning agreement signed during the period of the socialist municipal government in the Corporation.
Specifically, this relates to the agreement signed in 2005 with a company for the development of the property known as ‘Cortijo la Teja’. This agreement, which required a modification of the General Urban Planning Plan (PGOU) of the municipality, was never implemented as it contravened the current urban planning law. The amounts contributed by the developer, amounting to 1,225,242.99 euros, in exchange for urban development rights, were used by the then socialist government, as demonstrated in judicial rulings, for the payment of current expenses, mainly the payment of municipal employees’ salaries, thereby violating the then Urban Planning Law of Andalusia (LOUA).
In 2017, the company began to demand from the Estepona City Council the annulment of the urban planning agreement signed with the Estepona City Council on December 5, 2005, as well as the agreement adopted by the Estepona City Council in its session on December 20, 2005, approving the same. At the same time, full restitution of the amounts contributed at the time plus legal interests is demanded, as the socialist Corporation had seriously breached the terms of the agreement.
The Andalusia Territorial Planning Plan, approved by decree on November 28, 2006, already prevented, as stated in the ruling that now condemns the Estepona City Council, «an increase in developable land exceeding 40% of the existing urban land, a limitation that the Estepona City Council exceeded» that year «by having included a plurality of urban planning agreements.» However, even though this already prevented the development of the agreement in Finca La Teja, the socialist Corporation never resolved the agreement nor returned the amounts claimed by the companies.
The poor management of the socialist era in the Estepona municipal government continues to burden the municipal coffers with irregular urban planning agreements for which the City Council is being condemned to pay significant amounts.
It should be noted that upon taking office in 2011, the current government led by Mayor José María García Urbano found a total debt of 304 million euros and had to create a contingency fund for unfavorable judgments due to the numerous lawsuits the Council was involved in for non-payment. Of these, over 30 million corresponded to unpaid invoices to suppliers.
In the case of urban planning agreements signed by the PSOE mayors that were never executed, the amounts contributed by the companies were used for current expenses during years when the Council could not even pay the salaries of municipal workers or provide toilet paper in municipal nurseries. The García Urbano Government has been addressing the payment of this debt, which has been almost fully paid off, and the payments now being demanded by the companies harmed by those urban planning agreements.
It is important to remember that when the current administration led by Mayor José María García Urbano took office in 2011, they inherited a total debt of 304 million euros. To address this financial burden, they had to establish a contingency fund to cover unfavorable judgments resulting from the numerous legal proceedings due to non-payment issues that the City Council was facing. A significant portion of this debt, over 30 million euros, consisted of unpaid invoices to suppliers.
One major challenge faced by the new administration was the irregular urban development agreements signed by the previous socialist mayors that were never implemented. The funds contributed by the companies involved in these agreements were diverted towards covering day-to-day expenses. This mismanagement led to a situation where the City Council struggled to meet basic financial obligations, such as paying employee salaries and even providing essential supplies like toilet paper in municipal facilities.
Under Mayor García Urbano’s leadership, the current administration has worked diligently to address and settle this debt, which has now been largely repaid. However, the fallout from these irregular urban agreements continues to haunt the municipal finances. Companies affected by these agreements are now seeking compensation from the City Council for the damages incurred.
The recent ruling by the Andalusian High Court (TSJA) ordering the Estepona City Council to pay 1.2 million euros, plus interest, is a stark reminder of the consequences of past mismanagement. This judgment stems from an urban development agreement signed in 2005, which was found to be in violation of urban planning laws. The funds provided by the developer, totaling 1,225,242.99 euros, were unlawfully used by the previous administration to cover operational expenses, including employee salaries, in clear violation of urban planning regulations.
The legal battle over these irregular agreements highlights the legacy of poor governance left by the previous socialist administration in Estepona. Despite the challenges faced upon taking office, the current administration has made significant strides in addressing the financial mess they inherited. It is a testament to their dedication and commitment that they have managed to significantly reduce the debt burden and are actively working to resolve the remaining issues stemming from past mismanagement.
FUENTE