BENIDORM council has approved a deal to stave off possible bankruptcy over a land compensation award.
€283 million plus interest was granted by the Valencian Supreme Court in May 2024 to the Murcia Puchades family over the loss of building rights in the protected Serra Gelada Natural Park.
The total due is now around €350 million, but with interest, the value of the payout could reach €500 million over 30 years.
SERRA GELADA, BENIDORM
Murcia Puchades sent a letter on Monday backing a cash and land agreement with the council, which was then supported at Tuesday’s plenary meeting.
Benidorm City Council has emphasised that the agreement will mean no cuts to services or increases in local taxes, in addition to stabilising the authority’s budgets for the foreseeable future.
The Murcia Puchades family had three plots totalling over two million square metres in the Serra Gelada
Their legal action started after Benidorm City Council voided urban planning agreements signed in 2003 between then-mayor, Vicente Perez Devesa and several companies.
The first payment will be €60 million before the end of the year out of council coffers with €55 million of it coming from the government’s Economic Impulse Fund.
COUNCILLOR CASELLES
Council spokesperson, Lourdes Caselles, said that once the first transfer is made, Benidorm will only have to pay interest on the remainder of the sum until the end of 2030.
At that point, repayments will resume annually which will not be less than 8% of the current municipal income- estimated at around €7.25 million.
The Murcia Puchades agreement also involves transferring municipal land to them to cover over €67 million in interest on the €283 million award.
That element has to happen within five years, and further payments via land transfers to cut the debt are anticipated.
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