LOS TORRES REPORT BACK

[Roger]

LOS TORRES REPORT BACK

I have been asked to post a summary of the report I gave to the Promar residents in Los Torres.

URBAN SITUATION
The final resolution of the situation depends on the approval of the urban plan, and on this no-one can give a specific promise. However we are optimistic that we are on track and are receiving positive responses from the urban planning officials. We can see no legal or planning problems. The only question is how long it will take for final approval.
Innovacion 13 is being discussed with the various agencies to resolve small issues.
Innovacions 14/15 as part of a general urban revision are almost ready for publication.
We are about to publish our regulation in accordance with Decreto 2/2012 to regularize the houses currently outside the urban line. This is a temporary measure prior to final approval of the urban revision.
All the property in Los Torres has been segregated by the Catastral Office as urban. Most of the houses on urban land have been valued and will be receiving IBI bills this year (170 to 220 euros).
The rustic plots have also been registered, but not the houses. They will be receiving IBI bills for only the land this year (70 euros).

LEGAL AND FINANCIAL PROBLEMS
Promar are facing a mass of problems. Urban land not paid for, on which there are people living. Unpaid taxes. Unredeemed mortgages on clients' houses. Embargos from creditors. Court cases to resolve issues. A criminal case due probably in September. Unfinished infrastructure in many urban areas. Specifically there is a 50,000 euro court embargo on Promar registered land in El Rincon and Los Torres.
Although many clients paid for their land, all they in fact did is to buy a share of the undivided rustic plot, leaving Promar as the largest shareholder of the plot. It is this share which has been embargoed.

All this adds up to many hundreds of thousands of euros, which they do not have.

URBANISING LOS TORRES
The Town Hall urban planning office is currently preparing a report of the cost of urbanizing the 23 rustic houses in Los Torres in accordance with urban planning laws, and to provide the clients with all their documents.
Promar have agreed to pay for everything, including legal fees, registration and tax fees, architects reports, segregation licences, cost of escrituras, completing infrastructure. In addition they will have to cede the necessary land as part of the urbanizing process.
Based on the work done in other areas this is likely to cost over 200,000 euros.

THE PROBLEM
Promar do not have the money to meet this urbanization cost until the clients pay them the balance due to Promar.
The clients will not pay Promar until they receive their documents, which they cannot have until the land is urbanized. Even if they pay money to Promar it will be sequestrated because of unpaid taxes.
And the process cannot be done piecemeal. The whole estate has to be urbanized.

THE SOLUTION
Promar have signed an agreement to solve a similar problem in La Perla, and are about to sign a similar agreement for El Rincon. They want to proceed quickly with a similar agreement for Los Torres.

This involves each client agreeing the total due to settle their contract with Promar, and to pay this sum into an escrow account controlled by the clients, the Town Hall and the Promar legal representative.

THE PROCESS
Each client who may wish to join this agreement will meet one to one with Promar and to agree in writing the balance due.
The Town Hall will prepare a financial report of the total costs necessary.
Provided there is sufficient money due to cover the costs the process will continue.
Each client will pay the money into an escrow account and will receive a signed declaration from Promar stating that all debts have been paid and that the client is the sole owner of their homes.

QUESTIONS

1. What if only some clients sign up to the agreement?
Answer. It can continue for those clients provided there is sufficient money to cover the cost for those clients and the overall urbanization cost.

2. For those clients who do not join the agreement, will they receive their documents paid for from the escrow account?
Answer. No.

3. What will be the situation for those clients who do not join the agreement?
Answer. It will be between each client and Promar, if Promar is still trading.

4. What is the situation for those clients who have been dependent on a mortgage to make the final payment?
Answer. This is legally a matter between the client and Promar. However the Town Hall will try to negotiate with Promar on their behalf, if they wish.

5. What is the timescale?
Answer. Our feeling from many meetings with Promar is that this is a short term offer.
There are two clients in La Perla who have not joined and Promar are now saying if they do not do so quickly they can see us in court in 4 years.

CONCLUSION
The Town Hall is working very hard to find solutions to the huge number of problems with all the builders.
These are so complex and so numerous that they can only be tackled one at a time.
When we have done all we can with one estate and one builder we will move on to others.