New legal challenge to Helleniko property development project by adjacent municipality

By T. Igoumenidi
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The latest obstacle in the path of Greece's biggest real estate development project in decades is a legal challenge by a small municipality to the creation of a public sector body that, among others, will collect and manage the sizeable user fees from the Helleniko-Aghios Kosmas site in coastal southeast Athens.

A relevant lawsuit was filed this week with the Council of State (CoS), Greece's highest administrative court, by the municipality of Alimos, which borders a portion of the 620-hectare site, which ranks as the biggest "green field" privatization and investment in the thrice bailed-out country.

Essentially, what the municipality lawsuit demands is that the municipality, along with surrounding municipalities and the prefectural government, manage the overseeing body.

A multinational consortium led by Athens-based Lamda development has faced a "whac-a-Mole"-like path since it won an international tender  to develop the site where the old Athens airport and assorted other state facilities once operated. The eight-billion-euro project has been delayed by, among others, a forestry service designating a portion of the mostly arid site as "reforested land", efforts to declare old hangars as modern architectural monuments and assorted other legal challenges by private individuals, groups, local governments etc.

Representatives of investors who spoke to "N" appeared surprise at the latest legal challenge, which may or may not declare a commence of the contract, and by extension, construction works.

The development followed a positive turn last month, as an international tender for a gaming license (casino) at the site was finalized.

Efforts to reach Alimos Mayor Andreas Kondylis proved fruitless.