by Pere Fornes
SquareOne News
“Every morning an idiot gets up. He doesn’t know that his land is going to be grabbed.”
These are the words of the main accused in Spain’s most notorious corruption trial. Linked to the Urban Development Activity Act or so-called "land-grab" law, the problem is affecting hundreds of Scottish owners, and many others.
The act, enforced in the autonomous region of Valencia, allows authorities to take land from homeowners if a rural area is designated as being necessary for a building project. They can also charge owners to pay for the supposed benefit to the area that development brings. If the owners refuse, more land can be taken without recourse as there is no appeals process.
The law was originally designed to thwart speculators cashing in on cheap land prices by purchasing unwanted scrub-land and selling it for vast profits when the land was needed for public buildings. But now, the measures are being abused by developers who, in league with corrupt politicians routinely declare land surrounding holiday villas as being required for development.
Glenn and Jean Marshall, originally from Glasgow, live in a housing development called El Pinar in Alcossebre, on the east coast of Spain: “We bought this house at the end of August in 2003. We are retired and we decided to stay here all year” explains Glenn.
Soon after they arrived CIVISA, a Valencian construction company that owns some plots in the same area organised a meeting: “We became aware of what CIVISA calls a “re-urbanisation”. They were planning to build 800 apartments and we were supposed to pay for the cost of the redevelopment” said Glenn.
Glenn explained that CIVISA divided El Pinar into distinct development areas and although their plot was not in the undeveloped section, they were expected to contribute to the building project. He said: “Eight hundred apartments were going to be built. We were supposed to pay for that. They warned us that those who could not afford to pay would be expropriated.” For the moment, CIVISA´s project is on-hold, but Glenn Marshall believes their problems are not over: “I know that I’ll have to fight because CIVISA has invested a lot of money here.”
The Marshall’s case is only one of the thousands happening in Spain. The neighbours’ association to which they belong joined AUN, a group of small associations fighting against this problem. In 2003 AUN made a formal complaint to the European Parliament which resulted in three fact-finding missions and a series of recommendations to the Spanish government that they must change the law. This resulted in new measures being introduced that have not helped. In fact, the problem seems to be spreading with land-grab problems reported in other parts of Spain.
Labour MEP Michael Cashman, who has been deeply involved in trying to solve the problem, said: “The increase in petitions we are receiving from other parts of Spain - Madrid, Murcia, Andalucía, suggests that other regions are falling into the same traps encountered in Valencia."
Last year, the European Commission referred Spain to the European Court of Justice. That body is yet to act but it seems that if appropriate legal modifications are not made, a legal penalty will be enforced.
Find out more about the problem here: thisismoney.co.uk
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