Varna City Hall Tangled in 'Maritime Garden' Construction Scandal

The controversial sale of a land plot in the “Maritime Garden” in the Black Sea capital Varna was authorized by the former Varna Governor, Hristo Kontrov (front). Photo by BGNES

Bulgaria's Minister of Regional Development, Rosen Plevneliev, says he is "surprised" by the decision of the City Hall in the Black Sea capital Varna to issue building permits for the so-called “Alley One” in the park known as the “Maritime Garden.”

The Wednesday statement comes on the heels of the decision to give rights for the construction of 5 buildings along the beach-front alley to “Holding Varna,” which is a company belonging to the murky, surrounded by secrecy and legends, business group TIM.

Plevneliev is calling for an investigation in the case, pointing out that there is a construction ban and an order to stabilize the landslides in the area.

Varna's Chief Architect, Petar Yordanov, insists the Regional Ministry had given them the go ahead to issue the building permits under the condition the construction would not begin before the landslides in the area are stabilized.

The Chief Architect further says he "does not remember" exactly what the construction involves, but explains it would not include residential buildings, rather a hotel and a medical and SPA facility and "something else."

The CEO of “Varna Holding” had declined to offer any comments.

Meanwhile, architect Kalina Pavlova, which leads the NGOs protesting against construction in “Alley One” vowed to file a claim with the European Court of Human Rights.

As early as last summer, those NGOs attacked the sale of the 118 decares in the maritime garden before the Varna Administrative Court. The Court, however, rejected the claim with the motive the NGOs are not an interested party according to the Urban Development Act. The rule was appealed with the Supreme Administrative Court (VAS), which overturned the decision and returned it back to Varna.

“Holding Varna,” on their part appealed the VAS decision, dragging the case.

At the same time, the State Agency for National Security (DANS) is still probing the sale of the land plot to the Holding with the authorization of the former Governor of Varna, Hristo Kontrov. The deal for the total amount of BGN 11.7 M or BGN 100 per square meter of beach-front terrain was sealed in May 2009, just 2 months before the general elections, which brought into power the center-right Citizens for European Development of Bulgaria (GERB) party, replacing the socialist-led Three-Way Coalition cabinet.

In March, Plevenliev told the Parliament that the sale did not involve "significant" violations of the law.

The plot in question had been listed as a public State property in 1998; in 2000 it was turned into an exclusively State property while in March 2009, its status had been changed again to private State property by the Deputy Governor of the Varna Region, despite the fact that the State Property Act requires a decree of the cabinet for such changes.

Under the Detailed Urban Plan from 2002, the plot has been slated as an “Urban Coastal Zone” with recreational functions, however, the documents attached to the sale list it as an area for which there isn't urban planning and with "unclear future," leading to a significant price reduction in the appraisal.

According to the 2002 plan, the plot was part of the mega-project “Alley One,” to “modernize” the coastal line by building hotels, restaurants and an yacht port. But the Black Sea Coast Development Bill, passed in 2008, bans similar projects.

Kontrov claims he had approved the sale on the written request of the former Head of the Bulgarian Investment Agency, Stoyan Stalev, sent in April, 2009, in order to make the realization of the “Alley One” project possible. In 2007, the Agency awarded “Holding Varna” with a certificate for “Class A” investor for the same project, giving the investor the right to acquire terrains necessary for the project's realization. In is unclear, how and why Stalev had recommended the sale of the land in 2009, despite the 2008 construction ban.

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