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New Spatial Planning Act (5): Adjustments to the Municipalities Pre-emption Right Act

In the (Dutch) Newsletters of June, July, August and September 2008 we already discussed a number of important consequences of the new Spatial Planning Act (Wet op de ruimtelijke ordening, "Wro"). This month we will go into the consequences of the new Spatial Planning Act for the Municipalities Pre-emption Right Act (Wet voorkeursrecht gemeenten, "Wvg").

Grounds for Establishing a Pre-emption Right

The Wvg was amended as of 1 July 2008, because the Act had to be adjusted to the new planning schemes in the new Wro. With the introduction of the new Wro a number of plans have disappeared, such as the structure plan and the urban renewal plan. Instead, new plans have been created, such as the structural concept and the project decision. The Wvg was adjusted to these new plans. If a structural concept, a project decision or a zoning plan include lands, which were not earmarked for agrarian use, and the actual use of the land deviates from the earmarked destination, then the municipal council may establish a pre-emption right under the new Wvg. In order to allow municipalities to pursue an active land policy, the council may also, on certain conditions, establish an early pre-emption right in anticipation of the adoption of such plans. Even before that time, and in order to be able to react directly to developments on the market, the Municipal Executive may establish a preliminary pre-emption right on certain conditions.

Provincial and National Pre-emption Right

The amended Wvg allows not only municipalities, but also provinces and the central government to establish a pre-emption right. In the new Wro, provinces and the central government also have the right to adopt a structural concept, an integration plan (municipal or national zoning plan) and a project decision. In connection with this, the legislator has also granted the Provincial Council and the Minister of Housing, Spatial Planning and the Environment ("VROM") the power to establish a pre-emption right.

The establishment of a provincial or a national pre-emption right is subject to various conditions. First of all, the Provincial Council or the Minister of VROM may only establish pre-emption rights if they will personally adopt a zoning plan. Secondly, they may only establish pre-emption rights if national or provincial interests so require. Finally, there has to be a real intention to adopt an integration plan or a project decision, which will also be executed by them personally.

One Pre-emption Right at a Time

The new Act is based on the starting point that only one pre-emption right at a time can be vested in a plot. If a municipal pre-emption right is vested in a plot and the province then encumbers the same land with a pre-emption right, the municipal pre-emption right will lapse by operation of law. The same applies in the event that a provincial pre-emption right has already been established and the Minister of VROM subsequently establishes a pre-emption right. If a pre-emption right of a higher administrative authority is vested in the lands, the lower administrative authority no longer has the power to establish a pre-emption right on these lands.

Automatic Continuation of Pre-emption Right

Under the former Wvg, a pre-emption right had to be re-adopted whenever a new planning plan was adopted. The legislator assumed that the planning process for the desired development would become ever more concrete. The early pre-emption right would be followed by a pre-emption right on the basis of a (draft) structure plan, and subsequently a (draft) zoning plan. With each new plan the pre-emption right would have to be re-established.

In the new Wvg it is not required anymore to re-establish the pre-emption right time and again. Once a pre-emption right has been established, it continues automatically when the next planning decision has been adopted within the applicable statutory period. If the next spatial planning decision has not been adopted within the prescribed period, the pre-emption right will lapse by operation of law. This legal system carries the important advantage for the authorities of not having to go through a new procedure for the establishment of a pre-emption right every time. However, for landowners an important disadvantage is that they now have recourse to legal remedies against the establishment of a pre-emption right only once.

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Karien Lagrouw

Tel: +31 20 5506 844
E-mail: karien.lagrouw@kvdl.nl

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