Zoning laws bite the dust
Planning to build your dream home this year? Or perhaps investing in Kraków? If so, be very careful or else you may end up living next to Paweł's Pierogi Palace, or even worse - Paweł's Pleasure Palace. Please don't get me wrong, I like pierogi. I just don't want the Pierogi Palace as a neighbour. And if my wife were to ask, I definitely would not want to live next to Paweł's Pleasure Palace. Honest!
What am I talking about? As reported in an exclusive story in the January 20 issue of the Business Journal, the vast majority of cities across the country no longer have valid zoning plans. Simply put, Paweł's Pleasure Palace may be opening up soon in a house next to you. Zoning plans no longer apply.
A city such as Kraków may have dozens of local zoning plans. A local zoning plan may encompass no more than one city block. One city block may have a valid zoning plan, while the adjoining block does not. With no zoning plans in effect, local officials are now able to exercise even more discretion in approving or rejecting an investor's permit application. Local officials are no longer required to follow zoning guidelines in deciding the merits of a building permit application. With no local plan in effect, the entire zoning process becomes a bit, dare I say, "cloudy."
The obligation to adopt new local zoning plans dates back to January 1, 1995, when the Act on Spatial Development required localities to revamp their then existing zoning plans in order to comply with the new guidelines that took effect on that date. Despite two previous time extensions, the majority of localities failed to meet the deadline. Time's up.
Even worse, without a valid local zoning plan in place, it is now illegal for officials to approve certain projects, including new roadways and multifamily housing units. I'm afraid that "highway" between Konin and Warsaw may never be widened.
The districts of Warsaw, much to their credit, did adopt new zoning plans before the deadline. Good for them. The mere existence of a zoning plan, however, does not always ensure the desired results. I still haven't figured out how those domed corrugated tin huts next to the Palace of Culture ever gained approval.
Now what? Will local municipalities adopt new zoning plans? Eventually. Unfortunately, many local officials have decided to wait until the Sejm adopts a new set of guidelines to regulate local zoning plans. At present, the Sejm is considering a new Act on Spatial Development, designed to replace the existing one. If adopted, and we still don't know if and when, localities across Poland will be required to adopt more detailed zoning plans.
Chief among the proposed changes is the requirement that all new zoning plans comply with the "zoning studies" prepared by each city. Under the current Act on Spatial Development, local officials were only required to treat these zoning studies as mere suggestions in preparing their individual local zoning plan. No more. Under the current proposal, these zoning studies will be given more teeth, and local officials will be required to comply with their guidelines. Under the new Act on Spatial Development, local officials will be required to identify in their local zoning plans the future locations of all shopping centres in excess of 2,000 square meters, in addition to future roadways and other public infrastructure projects, as dictated by these zoning studies. The fact that a particular parcel of land is currently zoned for commercial development will not be sufficient under the new act for a developer to construct a shopping centre or roadway.
The land must be specifically identified in the zoning plan for such development.
What does this mean for Tesco, Carrefour, Auchan and Geant? In a nutshell, each of these supermarket chains will now be forced to compete for the same parcel of land in each locality in which they wish to invest. The owner of the land who is lucky enough to have his property zoned for supermarket development will be able to retire to Tahiti, while the owner of the land zoned for agricultural use will need to settle for Mazury.
Another major change included in the new draft law attempts to streamline the entire procedure to adopt new zoning plans. Under current law, an "interested" party can object to a local zoning plan at two different stages to the Supreme Administrative Court. Under the new Act on Spatial Development, this right will be reduced to one appeal, and only by a party who can show a "legal interest" in the zoning procedure, such as the owner of the property subject to rezoning.
The final version of the new Act on Spatial Development has still not been agreed upon by the members of the Sejm. Until such time, beware of anyone named Paweł moving in next door. Local officials may issue a building permit to Paweł to build his Pleasure Palace.
What am I talking about? As reported in an exclusive story in the January 20 issue of the Business Journal, the vast majority of cities across the country no longer have valid zoning plans. Simply put, Paweł's Pleasure Palace may be opening up soon in a house next to you. Zoning plans no longer apply.
A city such as Kraków may have dozens of local zoning plans. A local zoning plan may encompass no more than one city block. One city block may have a valid zoning plan, while the adjoining block does not. With no zoning plans in effect, local officials are now able to exercise even more discretion in approving or rejecting an investor's permit application. Local officials are no longer required to follow zoning guidelines in deciding the merits of a building permit application. With no local plan in effect, the entire zoning process becomes a bit, dare I say, "cloudy."
The obligation to adopt new local zoning plans dates back to January 1, 1995, when the Act on Spatial Development required localities to revamp their then existing zoning plans in order to comply with the new guidelines that took effect on that date. Despite two previous time extensions, the majority of localities failed to meet the deadline. Time's up.
Even worse, without a valid local zoning plan in place, it is now illegal for officials to approve certain projects, including new roadways and multifamily housing units. I'm afraid that "highway" between Konin and Warsaw may never be widened.
The districts of Warsaw, much to their credit, did adopt new zoning plans before the deadline. Good for them. The mere existence of a zoning plan, however, does not always ensure the desired results. I still haven't figured out how those domed corrugated tin huts next to the Palace of Culture ever gained approval.
Now what? Will local municipalities adopt new zoning plans? Eventually. Unfortunately, many local officials have decided to wait until the Sejm adopts a new set of guidelines to regulate local zoning plans. At present, the Sejm is considering a new Act on Spatial Development, designed to replace the existing one. If adopted, and we still don't know if and when, localities across Poland will be required to adopt more detailed zoning plans.
Chief among the proposed changes is the requirement that all new zoning plans comply with the "zoning studies" prepared by each city. Under the current Act on Spatial Development, local officials were only required to treat these zoning studies as mere suggestions in preparing their individual local zoning plan. No more. Under the current proposal, these zoning studies will be given more teeth, and local officials will be required to comply with their guidelines. Under the new Act on Spatial Development, local officials will be required to identify in their local zoning plans the future locations of all shopping centres in excess of 2,000 square meters, in addition to future roadways and other public infrastructure projects, as dictated by these zoning studies. The fact that a particular parcel of land is currently zoned for commercial development will not be sufficient under the new act for a developer to construct a shopping centre or roadway.
The land must be specifically identified in the zoning plan for such development.
What does this mean for Tesco, Carrefour, Auchan and Geant? In a nutshell, each of these supermarket chains will now be forced to compete for the same parcel of land in each locality in which they wish to invest. The owner of the land who is lucky enough to have his property zoned for supermarket development will be able to retire to Tahiti, while the owner of the land zoned for agricultural use will need to settle for Mazury.
Another major change included in the new draft law attempts to streamline the entire procedure to adopt new zoning plans. Under current law, an "interested" party can object to a local zoning plan at two different stages to the Supreme Administrative Court. Under the new Act on Spatial Development, this right will be reduced to one appeal, and only by a party who can show a "legal interest" in the zoning procedure, such as the owner of the property subject to rezoning.
The final version of the new Act on Spatial Development has still not been agreed upon by the members of the Sejm. Until such time, beware of anyone named Paweł moving in next door. Local officials may issue a building permit to Paweł to build his Pleasure Palace.
