21 August 2012
Commercial Real Estate publishes commentary by Nikita Gurin

Large objects in the center to be placed "under the knife"

The authorities are developing new urban planning regulations within the Boulevard Ring, according to which the volume of construction will be limited. The "surgical cutting" may well reach 200,000 sq.m.

According to the head of the Department of Cultural Heritage of Moscow (Mosgornasledie) Alexander Kibovsky, the authorities wish to minimize construction in the city center. They plan to make new town-planning regulations for 124 city districts within the Boulevard Ring. Some documents have already been approved by the Urban Planning and Land Commission. The regulations will contain height limits and restrict the volume of construction, which the investor will be able to modify only downwards.

The next step will be to develop 281 similar documents for the Garden Ring Road.

According to Nikita Gurin, lawyer with the Egorov Puginsky Afanasiev and Partners Law Firm, now city development plans are the basic documents that contain parameters for development, and need to be brought in line with city planning regulations and standards. "For projects currently under construction, we cannot rule out the likelihood that they would have to follow the new city development plans (by making adjustments to previous city development plans) in accordance with the regulations and on the basis of recommendations made by the Urban Planning and Land Commission to Moscomarchitecture," said the lawyer.

Changes to the documents will necessitate a revision of the investment agreements. If the development company is not satisfied with the new parameters, it may terminate the contract through the courts, claiming a substantial change of circumstances.

 

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