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The Abolition of the Nicosia Local Plan

By Antonis Loizou, FRICS
Antonis Loizou & Associates Ltd
Chartered Surveyors
Property Valuers - Project Managers

3 May 2009

The Abolition of the Nicosia Local PlanIt has come as a shock the abolition of the town planning Nicosia Local Plan, set as at 2003 and altered up to 2006. This 2006 plan included new agricultural areas into residential/ development areas, existing building density was increased in certain cases and in other cases it introduced for the first time protection from development zones. It has introduced incentives to build public parking, higher storey heights etc etc. In many respects it was a far more improved plan from the previous 2003 plan (as amended up to 2006) and property transactions over the last years were based on the plan as published and adopted. The High Court in its decision of the 15.4.2009 abolished the plan due to “some technicalities” and this abolition caused various and serious problems. Property which was acquired based on a higher density and at a higher price, now it is worth less, other property which was zoned agricultural in an agricultural area and based on the 2006 plan was included in a development zone and developed say, into building plots, this now has converted back into an agricultural area etc etc. Based on the Court decision the abolition of the 2006 plan, meant that the present town planning plan must be replaced by the previous one i.e. as at 2003 (as amended up to the year 2006). And all these as the introduction of the new local plan was expected to come about the year 2010-2011. What a mess and on top of this, in order for the Government to buy time, it has introduced on the 24.4.09 a new “white zone” (i.e. no development at all is allowed) for the areas which were classified as protection and agricultural zone in the 2006 year plan (and are now agricultural zones i.e. zones with no possibility to build). The rectification of this situation is not a simple job, since it requires time and procedures all over from the start and this will take approximately 12-16 months to be implemented. As if all these was not enough, there are difference legal opinions as to whether the Court decision referred to only those citizens who have appealed to the court, or to all property which falls within the plan. To all these one must consider the loss of value on real estate and by projection the mortgage value on which the financial institutions loaned millions of Euros (their mortgaged property is much much less on many occasions).

From what we understand from the Court decision, the technicality was that the various examining committees, which were set up in order to examine the various parameters, did not comprise by the same persons during the meetings and as such these committees comprised by different members of the Town Planning Board at different times.

We have repeatedly written both to the Minister of the Interior and published as such in the Greek press, that this Town Planning Board is not what we expect and it ought to have resigned a long time ago. We hold the view that it is so, because it has become a rubber stamp on the Town Planning Department, it does little work and it takes months to take a decision, whereas no new ideas come out of it. We hold the view that the Town Planning Board, with its members working full time elsewhere, it has become an indifferent Board, an extension of the Town Planning Office with a muted voice by choice. This is most serious since the Board is supposed to look at objections and suggestions by the public and others, against the proposals prepared by the Town Planning Department. As such the public has no chance to be heard since in our opinion the Board reflects 100% the Town Planning Department views. The question is now, will the Board members who because out of their inability caused billions of Euros in damage, to be called upon by the Court/public/Government to be compensated? Is the Board legally liable for such a mess? There is keen competition for such Governmental and semi Governmental Board positions, which are without payment and one wonders (naively) why there is such a cut-throat demand. The seeking of a fitchio (in Greek = Office Chair) comes with loads of side benefits directly or indirectly. Who on earth in his right mind will give up his (assumingly) successful private practice in order to “serve” in a Board free of charge? The answer is simple as you can imagine. We, as a firm, have not been affected by this state of affairs, but had we were, it would have given us a great pleasure to sue the Board for damage in order to set a precedent and an encouragement to others, not only in this case, but for other circumstances. A personal law suit against any Board members will make these “chair=fitchio” seekers to think again next time before they decide that it will be “lovely” to join an x Board.

As if all these are not enough and having spoken to the successful lawyer of the Nicosia case, he assured us that the Paralimni local town planning plan will follow (its abolition) with the same results - In this late case we were informed that Members of the Board/their advisors had a vested interest in the area of Paralimni (they owned property) and they ought not have participated in local decisions.

When one studies the procedures in preparing the individual town planning plans, one can ascertain for himself the incorrectness of the whole situation.

  • The Town planning department prepares the plan and after some discussions with local representatives, it submits its final proposals to the Town Planning Board.

  • All interested parties can object and submit their own proposals and which objections are examined by the Town Planning Department, the District Offices and the local authorities (i.e. the same people basically who have prepared the plans in the first place) who pass on their views to the Board.

  • The final results/recommendation of the objections are submitted to the Town Planning Board - In the case of the Nicosia plan these were 1622 objections and we wonder on this note, how can part timers with little interest actually study carefully the objections within a reasonable time?

  • The suggestions are submitted to the Minister of the Interior (whose advisor is the Town Planning Department - yet again the same people) who takes the final decision.

What a mess indeed, but who is listening?

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