Mayor Jaime Martínez announced on Friday that Palma town hall is to purchase the GESA building for 25 million euros.
The intention, he said, is to use the building as "a multicultural space". The agreement to purchase the building from the electricity company Endesa will be formalised during the first quarter of this year, with the funding being supported by ten million euros of EU Next Generation funds. The mayor pointed out that the deadline for presenting projects for Next Generation funds ends on Monday.
While the purchase has yet to go ahead, Martínez was hopeful that work on transforming the building will start during the current period of administration (which will end in May 2027). The project for redevelopment, he noted, will take around 30 months.
"The GESA building will host contemporary art 'in capital letters' in order to create culture 'in capital letters'. It will be a national and international showcase, with works and projects aimed at improving competitiveness within the tourism framework."
Negotiations with Endesa are said to very advanced and the agreement is almost ready. As well as the purchase, the agreement will free the town hall from paying 50 million euros plus interest (a total nearer to 60 million) for claims made by Endesa. These will be withdrawn.
Once the town hall takes ownership, the mayor explained, there will be "a quick, international competition for architectural ideas". These will have to take into account five or six floors dedicated to modern art, rooms for various cultural purposes, an auditorium, a library and city archive, the headquarters for the Municipal Institute of the Arts, an open-air museum and spaces for innovation in the arts, and catering services.
As to the exterior, this will largely be preserved. But there will be rehabilitation work, which already has the approval of the Council of Mallorca and Palma's Historical Centre Commission, to include solar panels.
The new GESA building, the mayor added, will form part of Palma's aspirations to be the European Capital of Culture in 2030.