Benidorm will vote on Monday the protocol agreed with the SPTCV to resume the works of the cultural center

They agree to change the right of surface of the soil by a demanial concession, exempt from VAT

The CJC must approve the terms of the agreement

The mayor, Toni Pérez, will propose on Monday to the corporation to approve the protocol of intentions between Benidorm City Council and the Society of Thematic Projects of the Valencian Community (SPTCV) in order to resume the works of the cultural center, after the dependent entity of the Generalitat accepted yesterday the changes and conditions proposed by the local administration to defend "the general interest" of the city.

Pérez explained in a press conference that in this protocol of intentions, prior to signing the agreement, is "the result of months of negotiations," which have been reported at all times to the rest of the corporation and in which has managed to "contemplate a first phase of work" which includes the execution of a smaller room of 546 seats, professional conservatory of music and dance, cafeteria, treatment of facades and decks of all these areas.

The mayor stressed that this protocol of intentions starts "a hopeful way", which could have been undertaken "as early as 2013", and is expected to conclude with "the restart of works and the completion of that first phase in the Period that has established the SPTCV, which was the first half of 2019.

In that protocol, the City Council undertakes to "start the file to change the legal figure" by which the floor was made available to the SPTCV to build the cultural center. Thus, it will be necessary to "declare the nullity of the surface right" granted to the SPTCV and its replacement by "a demanial concession", which is exempt from VAT.

This change is not less, since in those years that surface right has generated to the City a disbursement of "about 1.5 million euros" as a land VAT. If the change were made, that annual VAT would be canceled.

The mayor said that "we are going to try" that the agreement between the City Council and the SPTCV referred to in the protocol of intentions can be ready to be signed "within six months, before the end of the year." In the meantime, it is necessary to give an audience to the interested parties, among them the Tax Agency - and to receive a favorable opinion from the Juridical Consultative Council (CJC) to the agreement, which will maintain the conditions of the one signed in 2006, but under the new figure of the demanial concession. In this regard, it has insisted that "the opinion of the CJC is binding" and that if it is favorable, the agreement must be endorsed by the plenary.

Another of the issues that will be included in this agreement is the VAT that the City Council must pay when receiving the work. Perez has advanced that based on calculations made by municipal technicians, VAT for the total construction will amount to about 4.5 million euros, although this will be paid in proportion to the delivery of each phase of works . Thus, and if the deadlines set by the Generalitat are met, in 2019 Benidorm would have to pay the percentage of VAT that corresponds to that first phase and to the work that is received.