Post by pigeonpie on Oct 12, 2009 7:42:50 GMT
Cala Llonga tourist village to be put up for public auction
The controversial tourist village partially constructed in Cala Llonga has encountered further problems. The Banco Bilbao Vizcaya Argentaria (BBVA) is calling in its loan and is to auction the land and 37 properties situated in calle Lord Nelson in order to cover the debt owing.
The bank took the decision after work on the complex of luxury flats was halted following a dispute with Maó Council and the promoter’s assets will be publicly auctioned on 10th December in the Juzgado de Primera Instancia number 2 in Maó. Plot 1076 in the urbanisation of Cala Llonga will be on auction for a period of 20 days and in separate lots, together with the 37 properties on which work has started but can not be completed at the moment as the project is the subject of an ongoing court case. The valuation on the lots being auctioned is 2 million euros, the amount of the debt being recalled by the BBVA.
Cala Llonga Properties Development, which is part of the promoting group Consulting 2001 Inmobiliaria, asked the BBVA for a 1.4 million loan to finance work on the residential complex, but the bank debt increased to 2 million which was the sum the company needed to pay the builder, Sacyr Vallehermoso. Sacyr has carried out work to the value of 4 million euros and is reclaiming the balance of 2 million euros from Cala Llonga Properties Development through the courts.
Work was temporarily halted on the project in 2007 following complaints from residents about the visual impact of the “monstrosity”, leading to a municipal inspection which found that the maximum height permitted had been exceeded. The following year the Council fined the promoter and insisted that a new licence was needed to resume work on the project. A month later this permission was denied and the promoter lodged an appeal against the Council.
In 2009 the company was unable to meet its debts and declared itself on the verge of bankruptcy. There were complaints that the Council had not provided documentation, paralysing the court proceedings.
The President of the Cala Llonga Residents’ Association, Michelle Fox, lamented the fact that the height infringements had not been noticed by the inspectors earlier, in time for the project to be redesigned, and that the promoter then “continued working on a project that had not been approved by the Council”. She also criticised the Council for not acting earlier, telling residents who had complained about the project that everything was correct and only acting when attention was drawn to the matter in the press.
Until someone takes over the project the residents are resigned to having to put up with the sight of the “monstrosity” which dominates the skyline of their urbanisation.
The controversial tourist village partially constructed in Cala Llonga has encountered further problems. The Banco Bilbao Vizcaya Argentaria (BBVA) is calling in its loan and is to auction the land and 37 properties situated in calle Lord Nelson in order to cover the debt owing.
The bank took the decision after work on the complex of luxury flats was halted following a dispute with Maó Council and the promoter’s assets will be publicly auctioned on 10th December in the Juzgado de Primera Instancia number 2 in Maó. Plot 1076 in the urbanisation of Cala Llonga will be on auction for a period of 20 days and in separate lots, together with the 37 properties on which work has started but can not be completed at the moment as the project is the subject of an ongoing court case. The valuation on the lots being auctioned is 2 million euros, the amount of the debt being recalled by the BBVA.
Cala Llonga Properties Development, which is part of the promoting group Consulting 2001 Inmobiliaria, asked the BBVA for a 1.4 million loan to finance work on the residential complex, but the bank debt increased to 2 million which was the sum the company needed to pay the builder, Sacyr Vallehermoso. Sacyr has carried out work to the value of 4 million euros and is reclaiming the balance of 2 million euros from Cala Llonga Properties Development through the courts.
Work was temporarily halted on the project in 2007 following complaints from residents about the visual impact of the “monstrosity”, leading to a municipal inspection which found that the maximum height permitted had been exceeded. The following year the Council fined the promoter and insisted that a new licence was needed to resume work on the project. A month later this permission was denied and the promoter lodged an appeal against the Council.
In 2009 the company was unable to meet its debts and declared itself on the verge of bankruptcy. There were complaints that the Council had not provided documentation, paralysing the court proceedings.
The President of the Cala Llonga Residents’ Association, Michelle Fox, lamented the fact that the height infringements had not been noticed by the inspectors earlier, in time for the project to be redesigned, and that the promoter then “continued working on a project that had not been approved by the Council”. She also criticised the Council for not acting earlier, telling residents who had complained about the project that everything was correct and only acting when attention was drawn to the matter in the press.
Until someone takes over the project the residents are resigned to having to put up with the sight of the “monstrosity” which dominates the skyline of their urbanisation.
