What kind of rules define the allowed land uses in an area?
Rules on allowed land uses or restrictions of activities may derive first of all from the Land Planning Legislation, which provides for (a) strategic spatial plans, applicable on broader areas at national (including sectoral) or regional level, i.e. the general directions as to the developmental policy of the country, specific productive sectors or activities or the regions of the country; (b) regulatory spatial plans, setting specific regulations on areas and defining the allowed land uses and planning restrictions, which may be: local spatial plans; or special spatial plans; or urban planning application plans, which specialize the superior land plans at technical and more detailed level.
However restrictions on activities or even land use restrictions may also derive from environmental protection rules and sector specific restrictions which may exclude certain activities from certain types of areas:
Environmental restrictions on land uses may relate to the natural, cultural or manmade environment (fragile ecosystems including coastal areas, small islands, creeks, Natura areas and nature reserves following direct land use restrictions by the Biodiversity law 3937/2011, wetlands, forestry lands, including archaeological sites and monuments regulated under the archaeological laws or traditional settlements). Especially regarding protected areas there are usually regulations which provide detailed directions on the allowed and forbidden land uses (issued in the framework of L.1650/1986 art. 18 et seq).
Sector specific restrictions relate to the nature of the planned activity such as rules imposing limitations on the proximity of certain activities from other establishments (the proximity of mines to residential areas, the proximity of hotels to disturbing activities etc.). Environmental parameters and sector related rules are usually case specific and are examined at the environmental permitting stage of a project.
What are the different kinds and levels of land plans?
Recent Law 4269/2014 tried to modernize the land planning approach of the country, to simplify the procedures which applied through various (now abolished) laws, which had set different rules for land plans and for urban plans, taking into account modern trends and current needs. To this end, it introduced the notion of the “National Planning Strategy” to be formed by the Government, setting the basic principles and axes, the medium and long term development goals of the country and the proposed measures and actions for the realization of the sought development. Thus, the “National Planning Strategy”takes into account the national development strategy of the country, the applicable medium term fiscal strategy for Greece, the national programme for public investments and, of course, the international, European and national environmental policies along with other plans affecting the structure and the development of the national area.
As aforementioned, this law introduced two basic categories of plans: the strategic spatial plans and the regulatory spatial plans. All Spatial Plans are subject to Strategic Environmental Assessment (SEA Directive 2001/42/EC, MD 107017/2006, GG 1225/B/2006).
The Strategic Spatial Plans
The Strategic Spatial Plans, i.e. the National and the Regional Plans must take into account the aforementioned “National Planning Strategy”:
National Plans provide for the overall planning directions at national level or per sector of productive activity. Regional Plans are drafted at regional level adjusted to the basic characteristics of each Region (Periphery) of the country and may also contain organized receptors as well as approved big scale plans, public or private.
The Strategic Spatial Plans are revised, if necessary, every five years, however the law provides some flexibility so as to allow for their adjustment or modification, if needed, even before the lapse of the five year period.
The General Land Plan for the country was issued in 2008 (Government Gazette Issue GG/128/A/03.07.2008), in the framework of the previous planning law (2742/1999) and is still in force. The sector related plans (previously known as the Special Land Plans), which were also drawn at national level under law 2742/1999 aiming at the organization of specific sectors of national importance or specific land categories, also classify as national plans under the new 4269/2014 law. Such plans currently applicable are the plans for the following sectors: a) industry (GG/151/AAP/13.04.2009), b) tourism (GG/1138/B/11.06.2009), c) renewable energy sources (GG/2464/B/03.12.2008) and d) fish farms (GG/2505/B/04.11.2011) and e) prisons (GG/1575/B/28.11.2001).
Regional Plans were issued also in the framework of law 2742/1999 for all regions of Greece in the years 2003–2004 and are currently being revised.
The Regulatory Spatial Plans
The Regulatory Spatial Plans may be Local Spatial Plans, Special Spatial Plans or Urban Planning Application Plans.
Local Spatial Plans aim at setting rules on land uses, building coefficients and in general the allowed activities in areas usually at Municipal level. They have replaced the old ‘General Urban Plans’ of the law 1337/1983 (or ‘SHOOAPs’ which were applicable in the case of smaller settlements up to 2.000 residents of the law 2508/1997).
The Local Spatial Plans classify municipal areas as Residential Areas, which may also include private urbanization schemes; as Areas for Productive and Business Activities; as Protection Areas, which must also include areas regulated by other environmental or archaeological laws, forestry areas and other protected areas; as Areas for the Control of Land Uses, which are areas located beyond the boundaries of urban plans and settlements, usually around residential or productive and business activities areas with special restrictions on the allowed land uses in order to rationalize land uses. Local Plans, regulate in addition to the allowed land uses, building terms regulations, including building coefficients (built square meters, proportion of plot coverage by the building, height etc.) and they may even provide rules on the materials and styles of buildings. They are revised every five years, if necessary, however the law provides flexibility so as to allow for their adjustment or modification, if needed, even before the lapse of the five year period, like in the case of the Strategic Spatial Land Plans.
Following the approval of the Local Spatial Plans any residential, productive or other development is allowed only if it is compatible with the land uses and the overall terms and regulations of the Local Spatial Plans. However, the Special Spatial Plans may amend or modify previously approved Local Spatial Plans, if such amendment is necessary for the sought development and well documented.
The Special Spatial Plans (below in detail) are specialized, tailor made spatial plans drafted in order to host plans, projects or programmes of supralocal or strategic importance or organized receptors.
The actual urbanization of specific areas provided in either Local Spatial Plans or Special Spatial Plans happens by means of “Urban Planning Application Plans”which set with accuracy the areas to be built, the common use and public welfare areas, the network maps etc.
What are the types of land uses that may be allowed by the regulatory land plans?
Land uses are classified and categorized in art. 14 of the new planning law 4269/2914: i) residence, ii) neighbourhood -residence, iii) medium level residence, iv) urban centre, v) tourism, recreation and second homes, vi) common utility facilities, vii) open space areas – urban green areas viii) wholesale facilities, ix) Mass Transportation facilities x) Urban Common Utility Infrastructures, xi) low or medium disturbance productive activities, xii) urban sanitation facilities, xiii) technological parks, xiv) commercial parks, xv) high disturbance productive activities, xvi) special uses; xvii) delineated settlements; xviii) main road urban network.
Land uses are further specified according to their special urban plan purpose comprising the content of each land use category. Articles 15-32 regulate the exact and more specific content of each land use. As the case may be, specific contents may be excluded from the allowed broader use. For example, ‘tourism, recreation and second homes’ is the broader category which contains various specific uses such as hotels and various tourism facilities, residences, commercial shops, restaurants, sport facilities, helicopter pads, etc. The final spatial plan may define the land use for an area including or excluding certain of the uses mentioned above.
In the Residential Areas of the Local Spatial Plans the allowed land uses may be residence, urban centre, tourism recreation, open space and urban green areas as well as public use and utility land uses. The allowed land uses in the Areas for Productive and Business Activities cover the productive activities such as tourism – recreation, wholesale facilities, productive activities of low, medium or high disturbance, technological parks, commercial centres etc.
Law 4269/2014 tried to codify the provisions on maximum allowed building coefficients per type of land use above (art. 9, L. 4269/2014). An exception was granted for the case of organized receptors, for which other (greater) coefficients may be applied. In other words, if the special provisions regulating each kind of receptor provide for specific building terms (including coefficients), the respective special provisions surveil and apply over the ones provided as a general rule in L. 4269/2014.
Are there Special, custom made, Spatial Plans? How can they be of use to investors?
As aforementioned, the new planning law 4269/2015 provides for specialized, custom made spatial plans, classified as Regulatory Spatial Plans in order to facilitate development aiming to host plans, projects or programmes of supralocal or strategic importance, called“Special Spatial Plans”. Such plans must follow the directions of the relevant Strategic Spatial Plans (national, sectoral, regional plans), they are classified at the same level as Local Spatial Plans, yet, as aforementioned, they may modify previously approved Local Spatial Plans, if so needed in view of the specific character of the sought development -provided such modification is specifically documented and does not overturn the spatial and land planning operation of the broader area.
The importance of these Special Spatial Plans and their utility for investments is further evidenced by the fact that they are binding on all subsequent Local Spatial Plans and in case that future Local Spatial Plans wish to introduce provisions contrary to the Special Spatial Plans, such provisions must be specifically documented and previously approved by the project owner of the activity regulated in the Special Spatial Plan.
In this content, the law provides investor friendly provisions aiming at granting greater legal and planning security. Besides, the approval of Special Spatial Plans through Presidential Decrees, which presuppose the legality control of the draft decree by the Conseil d’Etat, add greatly to the degree of legal stability and certainty for investors.
Special Spatial Plans may be initiated by the country’s competent Authorities (Ministry of Environment and Energy, respective Periphery or Municipality) or the project owner of the plan/activity.
All ‘organized receptors’ in which productive activities can be land planned in an organized manner and permitted, classify as “Special Spatial Plans”. Planning in such organized receptors is preferred, wherever possible, because it entails less planning risk and, once receptors are established, simpler permitting process for the actual project (L.4014/2011).
As is the case with Strategic Spatial Plans and Local Spatial Plans, a Strategic Environmental Assessment must be drafted and approved also prior to the establishment of such receptors through Special Spatial Plans. In this way Outline Planning Consent is provided, dealing with basic strategic environmental parameters, guiding the next steps of environmental permitting which will cover more detailed issues related to the actual design of the project. Hence, we stress the importance of diligent and carefully designed Special Spatial Plans.
Which are the basic types of organized receptors?
The list of receptors mentioned in art. 1 of L. 4269/2014 is indicative. The most common organized receptors, also covered in the indicative list of article 1, are:
‘integrated tourism resort areas’ (POTA, art. 29, L.2545/1995). A ‘POTA’ is an area for integrated tourism development. Such areas are receptors for complex and integrated tourism resorts (hotels with summer homes for sale or long lease and special tourism facilities such as golf courses, spa, conference centers etc.). Planning integrated resorts in designated POTA areas is now compulsory in case of plots over 800.000 s.m. (art. 9, L.4002/2011). A POTA may not be planned in strict nature reserves, nature reserves and national parks as defined in the biodiversity law L.3937/2011);
‘areas for organized productive activities’ (known as POAPD areas, art. 24, L.1650/1986). A ‘POAPD’ area may be used for the establishment of any productive and business activity of the primary, secondary or tertiary sector. Standard case law of the CdE rules that in case of absence of integrated and complete land plans (at all levels) the permitting of fish farms (among others CdE893/2004, 2489/2006, 2683/2007, 1673/2010), industries and handicrafts (CdE2669/2007, 3175/2009) even hotels under certain circumstances (CdE1163/2002) may only be permitted within POAPD areas. In all these cases the environmental permitting of the project was annulled on planning grounds;
‘organized receptors for handicraft, industry and other business activities’ (Business Parks, art. 41 et seq., law 3982/2011). Industrial or handicraft activities of higher or lower impact and disturbance, professional workshops, logistics and storage establishments, business activities of the secondary and tertiary sector with the exception of shopping centers, applied industrial, energy, metallurgical or high tech research laboratories, electricity plants must be land planned in organized receptors recently regulated as ‘Business Parks’. Prior to L. 3982/2011 these receptors were known as industrial areas/parks, biotechnical parks and industrial & business areas. All these remain at force, if established and are now called along with Business Parks ‘organized receptors for handicraft and business activities’;
‘freight centres’ (provided in L. 3333/2005), i.e. organized structures for the combined transport of freight;
‘private urbanization schemes’ (previously known as PERPO, art. 24, L.2508/1998, Land Cooperatives, articles 124-138, Code of Basic Planning Laws and now jointly regulated in L. 4280/2014 as Areas for Environmental Upgrade and Private Urbanization, in short known as ‘PPAIP; areas). It applies for areas over 50.000 s.m. non interrupted by roads, greater creeks or other properties, which for areas over 150.000 s.m. the non interrupted parts must each be at least 20.000 s.m. Common use and public welfare areas correspond to at least 50% of the total PPAIP area. The CdE has previously taken the view that new settlements are to be created in the absence of existing, which could absorb the settlement pressures for first or second homes (CdE/PE 273/1998);
‘ESHADA plans for ‘State private properties’’ i.e. private properties of the State to be sold or long leased to interested investors and subject to development by the Hellenic Republic Asset Development Fund (TAIPED), which may be developed through special plans called ‘ESHADA’ according to the rules set out by the overall national development and planning policies (L.3986/2011) and subject to the rules of the ESHADA Presidential Decree which defines the land uses for the area of the private property of the State;
‘ESHASE plans for Strategic Investments’ (L.3894/2010), i.e. private projects or joint ventures with the State that fulfill the criteria to be included into fast track which may be permitted through special plans called ‘ESHASE’. Such plans, like the ESHADA plans define or clarify the land uses of the host area so as to assist the realization of strategic investments.
A brief on tourism and summer home laws with regards to planning laws
Greece is making a significant effort to overpass planning problems which have hindered integrated developments in the past, allowing for a more secure legal environment. Especially regarding tourism we must note law 4179/2013 which grouped all tourism receptors and provided clearly that, in short, they may be planned also within protected areas on the basis of the conclusions of a prior ecological assessment, as per art. 6 para 3 of the Directive 92/43/EU, a “Special Environmental Assessment” as provided in law 4014/11.
What is also to be noted is that the recently amended Special Plan for Tourism of the year 2013 (GG 3155/B/12.12.2013) has been annulled on procedural reasons by the Conseil d’ Etat, by means of its recent decision 3632/2015. Therefore, the old decision of 2009 (mentioned above) has revived and may currently be used for the planning of new plans and projects. Unfortunately the annulled amendment was innovative and was the first legislative document to distinguish between the kinds of receptors in tourism according to their softness, setting different conditions and restriction per each type of receptor, as well as to set a maximum building coefficient for tourism resorts including holiday homes in Natura areas, thus enhancing overall legal clarity. The annulment of this plan has left a legislative gap which we hope that the competent authorities will quickly fill.
To sum up:
Planning is a very important factor for the realization of investments in Greece. Recently there have been important legislative changes dealing with major planning issues in an effort to facilitate investments in Greece. The issuance of complete planning rules, the ability to plan using special planning receptors through special spatial plans that can deal with the needs of specific investments along with the ability to amend (under conditions) local spatial plans in order to enable the planning of investments, are expected to add to the overall effort of the country to create a more investor-friendly and more secure planning environment in Greece and thus attract investments.
