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Substantial fine for the municipality: over nine quintals of compensation after the refusal of a permit

The municipality has to pay more than 910,000 euros in compensation to a hotel apartment manager. The court decided this week. In 2014, the entrepreneur wanted to convert an office building to the east into a hotel. An environmental permit he was supposed to apply for was initially rejected, but was later found to be wrong.

The operator then received a permit in 2020. He then went to court to recover the income he had lost in the meantime. According to the entrepreneur, in the six years in which the rooms could not have been rented, more than one million euros would have been lost.

Money back

The municipality did not want to participate in this because it has doubts about this amount. He had previously paid the operator an advance of 500,000 euros and even wanted it back.

According to the court, it is plausible that the hotelier would have earned this amount if he had already received a permit in 2014. Since he had also had a renovation carried out in the meantime, and therefore the calculated profit is slightly lower, the municipality must pay compensation of 910 thousand EUR. Due to the advance paid earlier, he only needs to transfer 410 thousand euros.

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