Developer Agent (PAI)

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This is an urban management system by which, very basically, anyone is entitled to develop an area, no matters if this one is land owner or non-land owner of that area, which is a real revolution in the spanish traditional urban management system, where usually just area-to-develop owners are entitled (and obliged) to initiate the urban development (apart from the Administration, through expropiation).

Developer Agent is established as the primary way of urban development. Some regions allow this development system, but with prevalence of classic systems (compensación, cooperación y expropiación).

The Developer Agent selection is performed like other public contract procedure, that is by public contest: multiple offers (called Urban Development Programs or PAI) are submitted (in some cases, there is just one offer to compite), and depending on public criteria of selection, the local government chose the best option and grant the Urban Development Program to the wining Agent (a company).

The Urban Development Program (PAI o PAU) basically contains:

  • An “Alternativa Técnica”, that contains all urban planning acts (Plan Parcial or Plan Especial) and Development Projects (mainly, the Development Works Project and the “Proyecto de Reparcelación”).
  • A “Proposición Jurídico-Económica”, that contains the whole development cost, the percentage of land that land owner must yield to the Developer Agent assuming that they decide to pay through its real estate, and the commitments contracted between the Developer Agent and the area-to-develop owners.

Once the Developer Agent Program is selected, Developer Agent and town council are to sign an Agreement (called “Convenio regulador”) with defines all commitments and stipulations arranged between all parties.

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