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Urban Development
Juan Bertomeu Vallès , Wednesday, December 1, 2004

The project and costs of urban development

In previous articles we have dealt with how a PAI is processed and how its execution is awarded.
As already explained, the Technical Alternative is the document that identifies the sector of land subject to re-distribution and describes the works of urban development as well as its integration in the planning of the territory.
It contains a descriptive Report, the Certificate of Urban development (Cédula Urbanística) and Preliminary Plan of Urban development that defines the projected works to allow a  correct assessment.
The Preliminary Plan of Urban development presented together with the technical alternative needs full details in order to be carried out, and this is done through the Project of Urban development, which has to be passed by the town hall and published in the DOGV. 
The Project of Urban development defines the technical details for the accomplishment of the developing works foreseen in the PAI. It has to be written in sufficient detail to be executed, if necessary, under the direction of a technician other than the project designer.
The Project of Urban development cannot modify the previsions made in the PAI (but it can introduce adaptations to details required by the characteristics of the land) and cannot contain determinations on planning, land or building rules.
The Projects of Urban development for Integrated Interventions are processed for approval in the same way as the PAI. If the official notification to the public is not given along with the PAI, it is unnecessary to do it separately.

Documents relating to the Project of Urban Development
The Project of Urban development requires the following documents:

a. Descriptive report of the characteristics of the development works.
b. Information and Situation Plans, in relation to the general Town-Planning.
c. Project Planning, with full details.
d. Specifications of technical conditions.
e. Measurements.
f. Detailed Breakdown of individual costs and expenses.
g. Estimate of execution cost.

The works of urban development that have to be included in the Project of Urban development are the following:

a)  Road surfacing, parking areas, pavements, a pedestrian network and maintenance of green zones.
b)  Distribution of irrigation and potable water and fire hydrants.
c)  Sewerage system for residual waste and storm drains.
d)  Distribution of electrical energy.
e)  Street lighting.
f)  Maintenance of the garden areas.
g) Urban facilities such as gas supply and telephone lines (if imposed by the PAI). must also be included in the Project of Urban development.

The Projects of Urban development must arrange for the connection of all utilities with the general networks and show they are sufficient to supply the projected number of properties.
Finally, all the requirements imposed by the conditions of connection and integration in the Certificate of Urban development and in the PAI must be complied with.

Charges for urban development
The maximum amount of the charges for urban development is as stated in the legal-economic Estimate by the Developer.

The charges for the urban development jointly payable to the Developer by the owners are as follows:
a)  The cost of the feasibility study, sanitation, water supply and electrical energy, street lighting, planting of trees and gardening, as provided in the Plans and Projects (and of interest for the PAI execution).
b)   Compensation for the pre-existing works of urban development (which are useful for the PAI execution);
c)  Compensation for demolition of buildings, destruction of crops and any facilities incompatible with the PAI execution;
d)  The cost of the projects and expenses caused by the Re-division of the land.
e)  Also, if required by the department of town planning, the costs of exterior works (outside the sector) deemed necessary to connect to the general (municipal or supra municipal) utilities.
f)  Building works or construction elements for rehabilitation as imposed by the PAI.
g)  The expenses of putting the project out to tender (for the awarding of the contract).
h)  The managerial profit of the Developer (for promotion and management expenses).

Each owner bears the expenses generated by the executive collection of the quotas for urban development or derivatives through the voluntary withdrawal of any rights, contracts or obligations on the original property or its diminished value.

Quotas for urban development
When the owners pay the developer in cash for his work, the following basic rules apply:
a. The quotas for urban development and its imposition must be passed by the Town hall (on the basis of a report and a detailed and well-taken account, subject to a previous hearing by those affected) unless they are processed along with the Project of Re-division.
b. As soon as the project of Re-division is approved, the plots subject to the payment of quotas for urban development remain bound to and affected by the Re-division as real-right  charge registered in the Land Registry, for the sum specified in the ‘account of provisional liquidation’.
c. The developer can ask the Town hall to approve that at a later date new guarantees are included, up to covering the entire sum due from every plot (except if the owner of the plot has guaranteed the payment by means of deposit or guarantee).

Non-payment or Delayed Payment of Quotas for Urbanisation
If the quotas for urban development are not paid, the Town Hall proceeds to demand payment due to the developer by means of applying an apremio on the affected plots.
If they are finally paid, but with a delay, the developer also has the right to receive the legal rate of interest on the money.
The unpaid quota is considered outstanding one month after the notification of the Town Halls resolution (ordering immediate payment).
The Town hall, once it has received notification from the developer regarding non-payment of the quota, must initiate the procedure in a term not above two months.
The developer can agree with each owner to postpone the payment of the quotas for urban development. However, they must be paid before work commences (unless a deposit has been lodged that guarantees the payment).
The final sum of the quotas due on each is decided by dividing the entire cost of the Programme between all the resultant plots of the urbanisation, in direct proportion to their buildings coefficient.
In exceptional cases, the criteria of the division and general rules stipulated in the Programme or after the Project of Urban development is approved may be altered to compensate the disadvantages for plots with a protected building, when its inclusion in the unit of execution does not bring economic appreciation to this plot.

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