The company which operates Social Club on Palma's Paseo Marítimo, Alhambra S.A., has been given until April 26 to vacate the premises.
The redevelopment of the Paseo requires the demolition of the nightlife spot and the bridge that links the Mediterráneo building to the club. The company has a concession for the club until 2027. Negotiations for the terms of an early termination of the concession failed to reach agreement.
In January, Spain's transport ministry ordered the "urgent occupation of the assets and rights owned by Alhambra S.A.". This meant urgent expropriation, the ministry insisting that any further delay would paralyse the Paseo works and unnecessarily prolong restrictions on both pedestrians and traffic, "causing great damage to socioeconomic activity".
The Paseo is the property of the Balearic Ports Authority (not Palma town hall), and as the authority is the regional organisation for the State Ports, the ultimate authority is the transport ministry.
On Friday, representatives of the company and the Spanish government's delegation in the Balearics went to the town hall to formalise the forced expropriation.
The ports authority calculated compensation based on what it believed would be the club's profits until 2027. The company disagreed with its estimate; it was too low, and hence there was no agreement. No amount has been specified in respect of the forced expropriation. The club's website, meanwhile, lists events up to April 30.