The urban construction operation of a sports facility in Estella, a few years ago, has been a serious headache for the City Hall and a great harm to the neighbours, as according to the current mayor, Koldo Leoz (EH Bildu), can lead the municipality to bankruptcy. The recent report by the Chamber of Comptes of Navarre has only confirmed these suspicions.

The project was approved in 2004 with the objective of building a large sports city through a “non-classroom architecture” on land of 90,000 square meters of the Ontzineda environment, in the City Hall of Estella, according to the winners of the ideas competition. As the architect Lorenzo Barno explains in his memory Roots (Sustraiak), nature “had to adapt to take full advantage of its meaning”, which required “unlimited intervention”. But one thing was the project and the other was how the public authorities would choose to carry it out: in the following years they carried out numerous recalifications and expropriations through conventions, opening the door to speculation.

However, when UPN took over the mayor's office in 2007, the initiative was rendered meaningless. On the one hand, the City deviated a grant of EUR 1 million for the construction of a sports city by the Government of Navarra for the reform of a football field. On the other hand, the Administrative Disputes Chamber estimated the resources filed by several owners of farms, thus cancelling the recalifications.

And yet, both at the time of the PSN and at the time of the UPN, harmful clauses were added to the agreements, which meant a huge increase in the amount to be paid to the owners and developers of the construction.

EH Bildu won the city’s mayor in 2015 thanks to the support of Geroa Bai and Now-Orain. In September 2017 these forces publicly denounced the serious situation created by the Ontzineda operation in the municipality and now the Chamber of Comptos of Navarra has issued a control report for the Parliament of Navarra, at the request of EH Bildu. As explained, the poor management of the political leaders of these mandates would oblige the City of Estella to “face a compensation of EUR 14 million”.

Signatures without the authorization of the Governing Board

The City Hall, according to the treatment with the owners, would give them in exchange for the land of Ontzineda other lands, the so-called sector of Ibarra, with a promise to build houses there, and if in eight years they did not develop urban development, would pay in cash the price set by an external advisor: EUR 43,94 per square metre.

However, the Chamber of Comptes has placed the emphasis on a clause “very much to bear in mind”: if the City Hall agreed with some owner a higher price, the others would also be entitled to that money.

And he did. It gave a plot a price of EUR 108 – 245% more than that of the others – assuming a private valuation of the owner, without giving any reason. Thus, the total amount to be paid if the urban plan is not approved, goes from EUR 4.13 million to EUR 10.15 million in a single stroke.

These complementary clauses were signed by the mayor of the PSN, María José Fernández Aguirre, and were extended by the next mayor, Begoña Ganuza Bernaola de UPN, who currently holds public office as a parliamentarian in Navarra. According to the report, the signatures were made without passing through the municipal government board and the Chamber of Comptes considered that the authorizations of both this committee and the plenary were necessary. Mayors had no powers.

Moreover, the tax office has not found a technical report justifying the agreements and “it should be noted, moreover, that the City Council made available to external companies the work of advising, controlling and monitoring the agreements”.

In Ganuza’s allegations to the report, he points out that the technicians told him that “it was necessary to sign documents that are placed under my signature”.

As many allowances as a one-year municipal budget

The assessments carried out by the current municipal government on several plots of the Ibarra sector reflect that the square meter has a real cost of 2.25 euros, since it is again agricultural land, with a maximum of 211,536 euros to be paid to the owners. However, as a result of these clauses, it could be obliged to pay EUR 14 million.

The budget of the City of Estella for 2018 amounts to €11.7 million. This fact can be understood in the hand that Koldo Leoz called the alarm at last fall’s appearance in the Parliament of Navarra: “It has become the biggest financial threat facing the city.” “She has come to cry,” said PSN Parliamentarian Inma Jurío, to the representative of all lizards.

A month later, UPN leader José Javier Esparza undertook to reject all the measures taken by the government of Uxue Barkos when power came to power at the General Policy Control Plenary held in the Parliament of Navarre on October 26, 2017. Barkos kept saying: “Are you promising another Navy?...”, but the lehendakari couldn’t end, Begoña Ganuza interrupted the session by yelling, “I don’t tolerate it!” The irregularities committed after the urban operation are becoming more and more visible, and now the report of the Chamber of Comptos has closed even more the siege on those who had political responsibilities: “The Chamber of Comptes concludes that the urban agreements did not properly comply with the regulations.”

The mayor of EH Bildu has also provided surprising data, such as that two of the three construction promoters who acquired land – Alhama SL Activities and Promotions Herchi SL – were formed a few days before the signing of the agreements, one in Tudela and another in Fitero. Leoz has also reported the lack of documentation in the archive of the City of Vitoria-Gasteiz.

In its day it was estimated that the construction of the sports city would cost about 22 million euros. The Chamber of Comptos explained that up to now the City Council has spent EUR 940,400 on the implementation of the infrastructure and throughout the expropriation process, of which EUR 790,500 have been earmarked for the drafting of the project.

One of the solutions could be the construction of housing in the Ibarra sector, which is still within eight years to comply with some agreements; for the rest it is too late. On the other hand, the Council of Navarre can withdraw the agreements, but then the owners of the land can claim compensation. The City Council has reserved all the surpluses of the box to meet future expenses – EUR 4 million – which has left nothing for investment this year. A perfect storm of unjust debt has been imposed on Estella’s growing fields.