DECISION PURSUANT TO ARTICLE 203(5) OF THE FINANCIAL REGULATION (BUILDINGS POLICY)

Transcription

1 European Parliament Committee on Budgets DECISION PURSUANT TO ARTICLE 203(5) OF THE FINANCIAL REGULATION (BUILDINGS POLICY) taken by the Committee on Budgets on a building project notified by the European Commission for the purchase of a building, L102, located rue de la Loi, No 102, Brussels Rapporteur: Monika Hohlmeier AL\ docx PE v03-00

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3 BACKGROUND INFORMATION The Commission has transmitted a building project to the budgetary authority pursuant to Article 203(5) of the Financial Regulation on 8 September This project consist in acquiring full ownership in 2022 of the Loi 102 (L102) building located in Rue de la Loi, No 102, 1000 Brussels. Current situation with the L102 Building The Commission is using the L102 building since 1995 through a leasehold contract without purchase option, expiring at the end of This building is located in the heart of the European Quarter in Brussels, at close distance from the Berlaymont and other Directorate and Institutions. It is part of a bigger plot (L130-plot) where many of the Commission s services are sited. The L102 building was built in 1964 and was renovated and fitted out in 1994 by the owner. The plot on which the building L102 is built is 1428 square meters. Surface area of the building: Above ground: m² Below ground: m² Of which 46 parking places 600 m² of archives The L102 building is situated on a plot (L130-plot) where the Commission is the main user of the buildings. «Projet Urbain Loi» and «règlement régional d urbanisme zoné (RRUZ)» In 2008, the Brussels Capital Region in association with the Commission - organised a town planning competition for a perimeter around the rue de la Loi. The so-called "Projet Urbain Loi" (PUL), aims at transforming the district into an eco-friendly, mixed office/housing neighbourhood with more public spaces at ground floor level, breaking the monotonous character of the district. After the selection of the winning project, the Belgian competent authorities - Brussels Capital Region - began drafting town plans based on that proposal. Additional construction capacity is offered by allowing to increase the building height at specific locations in exchange for creating public spaces. The RRUZ identifies areas where constructions taller than 70 metres are allowed. On the L130-plot, the height of new buildings is restricted to maximum 165 meter (eastern part of the plot), where the L102 is located, and 114 meter (western side). Additional regional regulation are being drafted aiming at fixing land use for future project in that area. Future design of the L130-plot The Commission intends to renovate its owned-buildings and develop a new capacity in the whole L130-plot in order to benefit the full potential offered through the RRUZ, by building 2 towers. 2 phases of construction are envisaged. Phase 1 encompasses the Commission buildings L86, L102, L130 and J99 which are already between 22 and 43 years old. Phase 2 AL\ docx 3/6 PE v03-00

4 concerns the Commission buildings J-79 and SPA3, plus L-78 and L-82 after acquisition/expropriation. However, for phase 1, additional construction capacity offered by the Region can only be attained when the Commission owns the plot of the L102 building. Given the time required for such a project, the Commission has already started preparing the renovation/redevelopment of the L130-plot. An architectural competition will be launched in The purchase of the L102 building is seen as a key element of this project. The preliminary planning for the redevelopment of the whole plot is given below: 2017 Publication of competition notice 2018 Announcement of winner + press release + exhibition (end anonymity) 2019 Start detailed designs, tender for works and permit requests 2025 Start of development of 1st phase of construction 2030 Start of development of 2nd phase of construction Purchase of the L102 The existing leasehold contract cannot be terminated before term (31/12/2021). The submitted file by the Commission proposes the acquisition of the L102 building for an amount of EUR (value 2014) with payment obligation after 31/12/2021. The Commission explained that one the outcome of the negotiation was that the amount payable is linked to the index of March 2014, with no possible negotiation of the price at the time of the purchase (end 2021). The Commission has the freedom to choose between the HCPI or Santé Index. Procedure On 28 September 2016, the Committee on Budgets conducted a first exchange of views and decided to extend the deadline as referred to in Article 203(5) of the Financial Regulation. On 11 October 2016, the opinion hereunder was adopted by the Committee on Budgets. PE v /6 AL\ docx

5 OPINION The Committee on Budgets, having regard to Regulation (EC, Euratom) No 966/2012 of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (hereafter - Financial Regulation) 1, in particular Article 203 thereof, having regard to the notification of the European Commission on 8 September 2016 under Article 203(5) of the Financial Regulation; Notes the following: A. whereas the purchase of the L102 building is part of a broader redevelopment of the whole area; whereas many building located in the L130-plot are still not owned by the Commission; whereas it is of the interest of the Commission to own all buildings in that L130-plot; B. whereas the current rent of the L102 is EUR /year; whereas the leasehold terminates end 2021 with no purchase option; C. whereas the L102 Building is in good condition and has been fully renovated in 1995; whereas no significant refurbishing is foreseen until 2025 as the expected date for the 1st phase of construction; D. whereas the costs for acquiring the L102 building is EUR (2014 price), could reach up to EUR in 2021 and the final costs are still unknown; E. whereas the scale and the costs of the future project are still uncertain; 1. Stresses that the current rent of 292 Euro per square meter for the building L102 is very high compared to usual market prices in this area; therefore supports the intention of the Commission to purchase building L102 and the planned new projects of two towers within the frame of the Projet Urbain Loi to concentrate the staff of several DGs within one plot in the most cost-efficient way; 2. Underlines that the determination of the price in the year 2014 with an indexation up to the real purchase in the year 2022 causes an uncertain financial implication due to the volatility of the index; takes note, however, that the Commission strategy aims at reducing any real estate speculation and at securing the financial framework at the time of the redevelopment; asks the Commission to consider a renegotiation of the very expensive rent when accepting the indexation of the purchase price simultaneously;; 3. Takes note of the future redevelopment of the complex "Loi-130 plot"; asks the Commission to launch the architectural competition without delay; calls on the Commission to inform the budgetary authorities before the final determination of the future redevelopment of the L130 plot; AL\ docx 5/6 PE v03-00

6 4. Calls on the Commission to keep regularly informed the Parliament and the Council on the state of play of the purchase of the buildings L-78 and L-82 and the progress in the redevelopment plans of the L130-plot; asks the Commission to give a presentation of the chosen scale and costs of the project and the method of financing as soon as the winner is announced; Taking the above elements into consideration, delivers a favourable opinion on the building project notified by the Commission; asks its Chair to forward this opinion to the President of the European Parliament, to the Presidency of the Council in charge with the General Affairs and to the Commissioner for Budget. PE v /6 AL\ docx