Towards a new decommissioning law of state-owned property?

The National Council of Monaco voted unanimously on last May 10th the bill no. 253 relating to information on draft laws intended to pronounce the decommissioning of state-owned property.

The decommissioning entails the declassification of the land belonging to the State or the Municipality for the benefit of a private operator, which is a prerequisite for any disposal of this property.

This bill aims to frame the process of drafting decommissioning laws in order to better assess the impact of the planned operations on the environment and quality of life, as well as the balance of the project and its financial counterparts. To this end, the text expressly lists the documentation necessary for the study of the decommissioning bills and their vote, which must contain information of an urbanistic, economic and financial nature.

The text also provides for a provisional evaluation and a real assessment of the operation carried out after the sale to adjust the conditions, if necessary. Thus, in the event of an imbalance to the detriment of the interests of the State or the Municipality, the latter will be allocated a fairer balance or more equitable compensation according to the real value of the plot concerned. In fact, it is often noted, once the operation has been marketed, that the actual sale prices are much higher than those initially considered to define the value of the land. And, given the very high price of land asset, the stakes are often considerable for public finances.

In addition, and in order to anticipate any difficulties, the National Council requires to be informed of the broad outlines of a future contract between the State and a developer involving a decommissioning law before it is signed. It also proposes to include a suspensive condition in this contract, namely that the State should be able to withdraw if the decommissioning project is not validated by the National Council.

The text, intended to protect the interests of the State and to better preserve public funds, will ensure the transparency of the counterparts and compensations through their budgetary registration. Subsequently, these compensations resulting from the decommissioning will enable not only to carry out urban reparcelling, but also to acquire existing properties, either directly or through the right of pre-emption for the rent-controlled sector.

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Photo credit: Groupe Marzocco