Palma town hall will give back the Gesa building to Endesa and cede two plots of land to the electricity company that are on the second line back from the seafront. The granting of the land is what had been envisaged by the town hall when Aina Calvo was mayor from 2007 to 2011.
The land extends to almost 60,000 square metres, and the town hall believes that this will compensate Endesa for not developing frontline land which it in fact owns. The town hall does not want Endesa to undertake any development on this land. It has been suggested that it would be used for luxury properties, although Endesa has raised the possibility of there being some form of "emblematic" building instead.
The second line land would be used for property development, while the town hall plan also provides for a change of use for the Gesa building. Forty per cent of it could be for different purposes - commercial, residential or hospitality.
This plan is expected to be approved by the town hall next month. However, a definitive agreement with Endesa may well have to wait until after the election in May.