The Superior Court of Justice of Andalusia Orders Estepona City Council to Pay 1.2 Million Euros for Irregularities in Urban Development Agreement
The 2005 agreement, signed during the socialist government, was never executed due to violations of Andalusia’s urban planning laws, and the funds received were used for current expenses.
The Estepona City Council will have to pay 1.2 million euros, plus interest, due to irregularities in an urban development agreement signed in 2005 with a company for the development of the 'Cortijo la Teja' estate. The Superior Court of Justice of Andalusia (TSJA) has ruled that the agreement was never executed and that the funds received from the company were used for current expenses instead of for the project’s development.
The Superior Court of Justice of Andalusia has ordered the Estepona City Council to pay 1.2 million euros, plus the corresponding interest, due to irregularities in an urban development agreement signed in 2005 with the company responsible for developing the 'Cortijo la Teja' estate. The agreement, which required modifications to the municipality's General Urban Planning Plan (PGOU), was never carried out as it violated regional urban planning laws.
The funds provided by the company, totaling 1,225,242.99 euros, were supposed to be used for the planned urban development. However, instead of using it for the project, the socialist government at the time spent the money on current expenses, including paying the salaries of municipal employees. This practice was declared illegal as it violated the Law of Urban Planning of Andalusia (LOUA).
The Company’s Claim and the Nullity of the Agreement
The company affected by the agreement took legal action in 2017 to obtain the annulment of the agreement signed with the City Council. Additionally, it demanded the return of the funds provided, along with legal interest, arguing that the City Council had severely breached the terms of the agreement.
The court ruling points out that, according to the Land Planning Act of Andalusia, approved in 2006, such agreements were limited. Specifically, it prohibited the increase of urbanizable land by more than 40% of the existing urban land. However, the socialist administration exceeded this limit, making the agreement for the 'Cortijo la Teja' estate unfeasible.
Despite the project’s infeasibility, the socialist government never resolved the agreement nor refunded the funds requested by the company, leading to a series of legal proceedings that ultimately resulted in the current ruling.
Municipal Debt
This case adds to the financial problems inherited by the current government team led by José María García Urbano. When he took office in 2011, the Estepona City Council faced a historic debt amounting to 304 million euros. Part of this debt came from irregular urban development agreements signed by previous socialist governments, who used the funds received from companies for current expenses instead of for development projects.
The accumulated debt also included more than 30 million euros in unpaid invoices to suppliers. The current government team had to create a fund for unfavorable rulings to address the numerous lawsuits over unpaid debts the City Council was involved in.
To date, García Urbano’s team has significantly reduced the debt, but payments for lawsuits from companies affected by unexecuted agreements continue to be an economic burden for the municipality.
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The TSJA ruling highlights the serious irregularities committed during the socialist administration in Estepona's urban management. Although the current government has improved the municipality’s financial situation, resolving these legal disputes remains a priority, as they continue to impact municipal finances and the citizens' trust in public management. The situation underscores the importance of more rigorous and transparent management of public resources and urban development projects in the municipality.
Gracias a las prácticas fraudulentas y engañosas de los socialistas que han utilizado estos fondos para pagar a sus propios partidarios, los ciudadanos de Estepona todavía se encuentran, sin quererlo, ante esta factura hecha con dinero de los contribuyentes. ¡¡¡ fuera los socialistas fraudulentos!!!