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In Public Land Sale, Not All of Spain Is Buying | In Public Land Sale, Not All of Spain Is Buying |
(35 minutes later) | |
CASTELLAR DE LA FRONTERA, Spain — La Almoraima, a farming estate at the edge of a nature reserve, is prized by environmentalists. Home to one of Europe’s largest cork forests, it is a rare place where deer and boar roam wild within sight of the Rock of Gibraltar. | |
The Spanish government, which owns the land, wants to sell it for as much as 300 million euros, or about $376 million, pitching it as a perfect spot for a luxury resort, including a five-star hotel, a small airport, two golf courses and a polo grounds. | The Spanish government, which owns the land, wants to sell it for as much as 300 million euros, or about $376 million, pitching it as a perfect spot for a luxury resort, including a five-star hotel, a small airport, two golf courses and a polo grounds. |
The proposed sale is part of a rise in public land deals that politicians around the country are promoting in hopes of filling their treasuries and accelerating an economic recovery. But they are meeting strong opposition from environmentalists and others who say the deals evoke the kinds of excesses that got Spain’s economy into trouble in the first place. After its real estate bubble burst in 2008, the country was littered with unsold condominiums, empty arts centers and unused highways. | The proposed sale is part of a rise in public land deals that politicians around the country are promoting in hopes of filling their treasuries and accelerating an economic recovery. But they are meeting strong opposition from environmentalists and others who say the deals evoke the kinds of excesses that got Spain’s economy into trouble in the first place. After its real estate bubble burst in 2008, the country was littered with unsold condominiums, empty arts centers and unused highways. |
Now that the economy appears to be recovering, it is back to business as usual, the opponents say. | Now that the economy appears to be recovering, it is back to business as usual, the opponents say. |
“The government hasn’t learned any lesson from the property bubble,” said Alejandro Sánchez Pérez, one of the founders of Equo, a Spanish environmentalist party. “Its goal is still to promote speculative property deals,” he said, “with a strong focus on tourism, even if that involves handing over patrimony like La Almoraima that should clearly belong to all Spaniards, as it has genuine ecological rather than financial value.” | “The government hasn’t learned any lesson from the property bubble,” said Alejandro Sánchez Pérez, one of the founders of Equo, a Spanish environmentalist party. “Its goal is still to promote speculative property deals,” he said, “with a strong focus on tourism, even if that involves handing over patrimony like La Almoraima that should clearly belong to all Spaniards, as it has genuine ecological rather than financial value.” |
There have been no allegations of corruption in the proposed sale of the land. But opposition is fed in part by a proliferation of corruption cases in the aftermath of Spain’s economic crisis that showed the real estate boom to be a result of more than just reckless investment. It was also fueled by a lucrative, three-way relationship in which builders acquired construction permits from politicians and financing from banks, often also supervised by the politicians. | There have been no allegations of corruption in the proposed sale of the land. But opposition is fed in part by a proliferation of corruption cases in the aftermath of Spain’s economic crisis that showed the real estate boom to be a result of more than just reckless investment. It was also fueled by a lucrative, three-way relationship in which builders acquired construction permits from politicians and financing from banks, often also supervised by the politicians. |
From 2000 to 2008, Spain added about four million houses along its coastline, despite accusations by environmental groups that the building frenzy amounted to an illegal privatization of Spanish shores. In addition to concerns about the new land sales, regional governments and the administration of Prime Minister Mariano Rajoy are facing criticism for helping to regularize those deals, some of which violated regulations. | From 2000 to 2008, Spain added about four million houses along its coastline, despite accusations by environmental groups that the building frenzy amounted to an illegal privatization of Spanish shores. In addition to concerns about the new land sales, regional governments and the administration of Prime Minister Mariano Rajoy are facing criticism for helping to regularize those deals, some of which violated regulations. |
The government of Andalusia, Spain’s largest region, recently introduced legislation to adjust the status of as many as 25,000 houses built illegally before the crisis. Many of the houses were acquired by sun-seeking pensioners from Northern Europe, who claim to have never suspected irregularities. | The government of Andalusia, Spain’s largest region, recently introduced legislation to adjust the status of as many as 25,000 houses built illegally before the crisis. Many of the houses were acquired by sun-seeking pensioners from Northern Europe, who claim to have never suspected irregularities. |
Spain’s politicians see the new sales of public lands as a chance to shed unproductive assets, replenish their coffers, stimulate tourism and get the construction industry moving again. | Spain’s politicians see the new sales of public lands as a chance to shed unproductive assets, replenish their coffers, stimulate tourism and get the construction industry moving again. |
At La Almoraima, farming activities have been struggling, and Spain’s government is hoping to auction off the estate by early next year. Last year, the government injected €2.3 million of subsidies to keep the place running. | At La Almoraima, farming activities have been struggling, and Spain’s government is hoping to auction off the estate by early next year. Last year, the government injected €2.3 million of subsidies to keep the place running. |
For now, La Almoraima, with its lake surrounded by a vast expanse of forest, stands in contrast to the extravagance of Marbella and other resorts along the Costa del Sol, about half an hour’s drive away. Here, rather than shop, visitors come for the donkey rides or hunting season. The estate was expropriated from Rumasa, a collapsing conglomerate, by the government in 1983. | For now, La Almoraima, with its lake surrounded by a vast expanse of forest, stands in contrast to the extravagance of Marbella and other resorts along the Costa del Sol, about half an hour’s drive away. Here, rather than shop, visitors come for the donkey rides or hunting season. The estate was expropriated from Rumasa, a collapsing conglomerate, by the government in 1983. |
Isabel Ugalde, the administrator of the property, said that turning the low-key estate into “a trophy tourism asset” would help attract more foreign investors to a real estate market only recently emerging from the doldrums. | Isabel Ugalde, the administrator of the property, said that turning the low-key estate into “a trophy tourism asset” would help attract more foreign investors to a real estate market only recently emerging from the doldrums. |
A luxury resort, Ms. Ugalde argued, would not damage the surroundings because the new infrastructure would be built on only a tenth of the estate’s 14,113 hectares, or 34,874 acres, while the rest would remain as a nature park. | A luxury resort, Ms. Ugalde argued, would not damage the surroundings because the new infrastructure would be built on only a tenth of the estate’s 14,113 hectares, or 34,874 acres, while the rest would remain as a nature park. |
“If you go to Asia, you can see amazing resorts built without any environmental damage,” Ms. Ugalde said. | “If you go to Asia, you can see amazing resorts built without any environmental damage,” Ms. Ugalde said. |
Among those interested in the estate is one of France’s richest men, François-Henri Pinault, and his wife, the actress Salma Hayek. The couple took a helicopter flight over the property earlier this year to decide whether to bid on it. | Among those interested in the estate is one of France’s richest men, François-Henri Pinault, and his wife, the actress Salma Hayek. The couple took a helicopter flight over the property earlier this year to decide whether to bid on it. |
Ms. Ugalde would not discuss whether Mr. Pinault was the front-runner to buy La Almoraima. Yet she conceded that the investors who have shown an interest in the estate include “some of the wealthiest people in the world, some of whom are just thinking about enjoying the place for themselves.” | Ms. Ugalde would not discuss whether Mr. Pinault was the front-runner to buy La Almoraima. Yet she conceded that the investors who have shown an interest in the estate include “some of the wealthiest people in the world, some of whom are just thinking about enjoying the place for themselves.” |
That has not pleased local residents or political parties. Opposition to the project is visible at the local town hall of Castellar de la Frontera, run by the United Left Party, which has hung a banner from its balcony denouncing the planned sale. | That has not pleased local residents or political parties. Opposition to the project is visible at the local town hall of Castellar de la Frontera, run by the United Left Party, which has hung a banner from its balcony denouncing the planned sale. |
The regional government of Andalusia, which is run by Spain’s main opposition Socialist Party, is opposing the sale as well. It recently persuaded a court to rule against the project, by extending the area protected as a nature park to the whole estate. The national government is appealing the ruling. | The regional government of Andalusia, which is run by Spain’s main opposition Socialist Party, is opposing the sale as well. It recently persuaded a court to rule against the project, by extending the area protected as a nature park to the whole estate. The national government is appealing the ruling. |
While environmentalists welcomed the support, they were quick to note that the Socialists had helped accelerate Spain’s construction boom while they were the party in power at the national level from 2004 to 2011. | While environmentalists welcomed the support, they were quick to note that the Socialists had helped accelerate Spain’s construction boom while they were the party in power at the national level from 2004 to 2011. |
The Socialist opposition to the project “is just part of the political game once you become the opposition party,” said Mr. Sánchez Pérez of the Equo Party. “When the Socialists were in power, they promoted some of the most absurd projects.” | The Socialist opposition to the project “is just part of the political game once you become the opposition party,” said Mr. Sánchez Pérez of the Equo Party. “When the Socialists were in power, they promoted some of the most absurd projects.” |
He cited the half-built Algarrobico hotel, set on a pristine beach, which has been the subject of a long court battle and is one of several disputed projects that remain unused but standing, even though the Supreme Court ruled against the hotel’s location in 2012. | He cited the half-built Algarrobico hotel, set on a pristine beach, which has been the subject of a long court battle and is one of several disputed projects that remain unused but standing, even though the Supreme Court ruled against the hotel’s location in 2012. |
Similarly, the regional government of Extremadura was ordered last year by the Supreme Court to destroy an island resort built in Valdecañas, a protected nature reserve. | Similarly, the regional government of Extremadura was ordered last year by the Supreme Court to destroy an island resort built in Valdecañas, a protected nature reserve. |
Since then, the Extremadura government has continued to argue against the €34 million cost of the destruction, claiming that it would be “better for the environment” to keep the resort. | Since then, the Extremadura government has continued to argue against the €34 million cost of the destruction, claiming that it would be “better for the environment” to keep the resort. |
As for La Almoraima, Jorge Bezares, who represents an association of businesses and residents who live near the estate, said Mr. Rajoy’s government was showing “little sensitivity toward what should have been an opportunity to preserve an emblematic and untouched estate.” | As for La Almoraima, Jorge Bezares, who represents an association of businesses and residents who live near the estate, said Mr. Rajoy’s government was showing “little sensitivity toward what should have been an opportunity to preserve an emblematic and untouched estate.” |
Whatever the financial logic for the government of divesting from La Almoraima, most locals believe they will not share the benefits. | Whatever the financial logic for the government of divesting from La Almoraima, most locals believe they will not share the benefits. |
Cristina Castilla, who lives nearby and has been jobless for six years, gave a gloomy forecast. Even if a luxury resort is built on the estate, she said, “all the new jobs will be given to outsiders and none will go to the people who already live here.” | Cristina Castilla, who lives nearby and has been jobless for six years, gave a gloomy forecast. Even if a luxury resort is built on the estate, she said, “all the new jobs will be given to outsiders and none will go to the people who already live here.” |