Would you like to simply and quickly learn about the essentials of our initiative and clear up any doubts you might have?
The promoters of the Project are a group of owners of some of the main AZCA properties who have established a company called RENAZCA. With the support of a group of national and international architects over the last two years, it has taken on the Project to revamp and revitalise AZCA, supported by the participation of the Orense residents communities and the association of retailers in the area (PROAZCA), as well as owners of the offices located on the block.
This project was presented to the City Council on 31 December, by means of a Feasibility Study, which is the first step in a contractual administrative procedure that the City Council is now processing. One of the first steps is the opening of a public consultation process in which observations can be submitted so that the corresponding Preliminary plan can be approved, which will likewise be subsequently submitted to a new period for observations before the request for tenders of the concession is issued.
RENAZCA estimates that the total investment, encompassing not only publicly owned spaces for public use but also private property for public use, including refurbishment of the waste water disposal network, will be 52,455,536 euros. The Feasibility Study submitted to the City Council is based on the hypothesis that it will be financed with the concessionaire’s own funds.
It should also be recalled that the successful tenderer of the concession agreement, after executing and financing the works, will assume the obligation to handle the upkeep and maintenance expenses: lighting, security and cleaning expenses; and investments for making the necessary replacements to ensure that the installations of the space are always kept at the appropriate level of quality during the term of the concession. The estimated amount for covering all these concepts is 2,891,642 euros as from the year when the initial works are completed, and the amount will be updated according to the forecast cost increases included in the financial model, until reaching 5,090,52 euros in the last year of the concession.
At the end of the concession, the concessionaire assumes the obligation to deliver the works to the City Council in a perfect state of upkeep and maintenance.
The Feasibility Study contemplates that the forecast revenue that could be generated by the concessionaire would be complemented by a contribution made by the City Council every year in consideration for providing maintenance and certain complementary services that would allow keeping the space in optimal conditions of use. The submitted financial model contemplates an estimated annual amount of 1,944,488 euros for this concept. This is the only amount that the City Council should have to pay in exchange for the concessionaire paying for all the works and keeping the entire AZCA space in a perfect state of upkeep during the contractual term.
Unlike other public spaces of the city, AZCA has a complex legal structure of land and properties due to the way in which it was conceived at the onset over 50 years ago. This is perhaps one of the reasons why it has not been possible, until now, to succeed in tackling a refurbishment and updating of the various interior spaces of the block, unlike what has happened with other spaces, such as what was done with Plaza de Colón or Plaza de Felipe II, and more recently with Plaza de España.
This is why, for the first time, a group of property owners of the area has proposed undertaking a project that would be carried out through an administrative concession. Using this formula, the successful tenderer of the concession, subject to the corresponding public tender, will execute the works and will subsequently be in charge of guaranteeing comprehensive maintenance, including upkeep, cleaning and lighting, as well as security complementary to what is provided by the municipal police. The concessionaire will pay for the cost of everything, and in exchange it will be able to earn income from concepts such as operating certain advertising media; the installation of terraces such as those that exist in other public parks or streets of the city; setting up open-air Christmas markets or arts and crafts fairs; organising acts for presenting events or products, such as those that are carried out at Plaza de Colón or other public spaces of the city, etc., all of which would be completely open to the general public.
Not at all. The submitted Feasibility Study contemplates, as a hypothesis, that the concession agreement to be signed would transfer all the risk of the forecast revenue to the concessionaire. In no event would the fact that the estimated revenue is not reached result in an increase in the initially planned municipal public contribution. The eventual losses must be assumed by the successful tenderer of the contract, and such losses could not be used by the concessionaire as justification for a decrease in its obligations: maintenance, cleaning, security, lighting, etc.
The planned investment in public land would amount to 44 million euros, to which an operating expense of 150 million would have to be added for handling maintenance and upkeep of the space during the term of the concession, which would mean a total of 194 million. On the revenue side, the forecast is 245 million, of which the City Council would contribute 106 million, with the remainder coming from revenue derived from management of the space by the concessionaire. The after-tax profit, if the revenue forecasts are met, would be 39 million over 40 years.
As it can be seen, of the 194 million in total investment and expenses assumed by the concessionaire, the City Council is expected to assume 106 million, as long as the concessionaire meets its obligations in full, which will be recorded in the contract’s specifications. The remainder will come from the revenue that the concessionaire forecasts earning from management of the space, at the concessionaire’s full risk. Said management must always and in any event be compatible with free access and enjoyment of the public space by citizens, just like in public spaces managed directly by the City Council, such as Plaza de Colón, Plaza Mayor or Plaza de Felipe II.
But it is very important to point out that, in addition to what is shown in the project regarding the public land within the framework of the concession, Renazca has put forth that the concessionaire should also be in charge of refurbishing private areas for public use through agreements with the owners of those areas, as well as assume the maintenance of these areas (with an investment of nearly 9 million euros in addition to the aforementioned). Therefore, through the corresponding agreements with all the resident communities of Orense, there would be coverage of the commitment to pay for the electricity and water supply for what is commonly known as “bajos de Azca”, in addition to all the concepts corresponding to comprehensive maintenance. But while this does appear in the feasibility study, it does not form a part of the accounts of the public domain concession, meaning the proposed concession agreement, rather the work would be an improvement that the concessionaire would assume in its proposal or bid, materialising at the time of the request for tenders of the concession agreement.
Apart from the deductions and penalties that could be decided, the public administration could seek termination of the concession agreement due to breach.
In no event does the Feasibility Study contemplate this scenario.
The intervention scope of the proposed Project is the public space of AZCA, and the backers of the project also seek for the refurbishment to include private spaces for public use, such as those called the “bajos” (below-ground level areas) of Orense street. In no event will access for use and enjoyment of the public space be limited or restricted. On the contrary, the planned works seek to not only open up areas that are so degraded that they are not currently visited by anyone but also turn them into accessible spaces for strolling and spending free time. The idea is to provide the space with recreational, cultural and leisure activities, such as open-air markets, terraces and outdoor exhibitions, where everyone, all residents, young and old alike can access the space freely to have an enjoyable and satisfying experience.
Yes. Not only does it remain in the submitted Feasibility Study, it is also expanded. The current court is only a half court, which limits the experience and the playing possibilities. The project proposes a full basketball court in an area next to its current location, with better finishes and services, such as a small set of bleachers. It will all be free and open to everyone, just like it is now, with the concessionaire responsible for cleaning and maintenance of the court.
The submitted Feasibility Study provides for two padel courts, in addition to the basketball court. However, there will be a charge for playing on these courts. Moreover, the proposal developed in the Feasibility Study provides for spaces called “urban rooms”, some of which could be used for activities requested by young people, such as skateboarding, which is currently taking place in the area, albeit in a disorderly and chaotic fashion. Thus, various activities could take place alternately, depending on the detected demand, such as those related to skateboarding itself or callisthenics, cubo gym or parkour.
Yes, this refurbishment is also contemplated. The interior of the AZCA block is a complex area from the point of view of ownership or properties. There is a public domain area, owned by the City Council, and other areas that are private, but open for public use, which are interspersed with the former and have no continuity solution. Finally, there are areas of strict private ownership, formed by the commercial buildings and zones and the immediate surrounding area.
The project submitted to the City Council has sought to provide a solution to not only the public domain space but also to the private space with public use, wherefore the Project contemplates taking action at the three levels according to which the public use area of the AZCA block is structured.
All of this is without prejudice to the concessionaire being able to reach the necessary agreements with the owners of the privately owned properties in order to expand the work and include those properties.
The submitted Study contemplates that the concessionaire who is the successful tenderer of the public tender called by the City Council of Madrid should begin work after the contract is awarded and formally signed. As from then, the expected duration of the works is 24 months.
The submitted Feasibility Study provides a detailed explanation of the deployment of cultural, recreational and leisure activities, such as exhibitions, open-air markets, commercial presentations and spaces intended for terraces, following the model of other public spaces such as Plaza de Colón, the Botanical Gardens or the recently remodelled Plaza de España. Without prejudice to the fact that the contract specifications will govern the concession agreement in this regard, it is assumed that the potential activities will logically and necessarily have to be coordinated with the municipal body to be determined, initially the Municipal Board of the District of Tetuán.
Any activity that could take place in AZCA must logically comply with municipal regulations and ordinances. Among these regulations, there is the Specific Zone Plan of the Special Acoustic Protection Zone of AZCA-Avenida de Brasil, which has been in place since 2014 and was recently amended by decision of the Plenary Session of 31 May 2022. The concessionaire must therefore assure strict compliance with said plan insofar as the AZCA area might be affected. Nevertheless, the space resulting from the works planned in the project is not designed to handle large concerts, rather the occasional musical event with limited capacity and during times that are compatible with the residents’ right to rest.
The large central park designed in the Project will be a peaceful refuge for getting away in the heart of the city and a place that can be transformed for dynamic encounters, therefore offering collective experiences and content to citizens and visitors, with events and shows occasionally scheduled throughout the year (fiestas of the district, “Veranos de la Villa” summer festival or Christmas events). As a whole, the actions planned in the Project are based on implementing all the necessary measures that allow respecting current regulations related to the prevention of noise pollution and on transforming AZCA into a safer space, with less conflictive and more sustainable night life and with a strategy in accordance with noise awareness campaigns promoted in the city. Measures could be implemented at business premises and its surrounding areas to help ensure that the right to rest of residents is balanced with business activities and the enjoyment of leisure time by citizens.
The objective is for the space as a whole, without exception, to be completely suitable for the use and enjoyment of citizens.
Whether it is considered to be in the public domain or as private property with public use, the project plans on doing away with the corridors and passageways that exist mainly in the lower levels of AZCA by opening up skylights or installing adequate lighting systems and supports that allow housing exhibits with digital art content, as well as informative content. This will generate content that incorporates these areas into the rest of the route and spaces, consequently having the necessary activity such that it allows transit by users or citizens without concern.
Commercial premises constitute private property that do not form a part of the Project, nor can they form a part, given that the Project cannot extend beyond public and private spaces for public use. However, it is foreseeable that the uses of those commercial premises, just like those of other business premises, could evolve and transform as a consequence of the changes that will occur in the area as a whole.
We are at the initial phase of the administrative procedure for contracting a works concession. The Public Sector Contracts Law provides that a feasibility study can be submitted by a private enterprise in order to trigger the contracting process of a concession, which is what RENAZCA has done. As from that moment, and pursuant to the legal procedures provided for in our legal system, such as the public consultation process and the evaluation of the corresponding due diligence reports, the subsequent request for tenders will be issued, if applicable, which could end in an awarded contract, or it could be declared void if no bids are submitted or if none of the bids meet all the requirements in the contracting specifications. In this case, the City Council of Madrid could opt to issue another request for tenders or, if applicable, take on the works directly.
The current configuration of AZCA is the result of a design from a period of time when the current concern for everyone to be able to enjoy any public space, regardless of their capabilities, did not exist. The result is that, despite the existence of some ramps that seek to facilitate accessibility, the space is intricate, where a constant barrage of obstacles have to be overcome in order to move through it. This has been one of the concerns of the Project’s specialists, and the end result will be a space that is not only completely renovated and current, but also fully accessible by all.
A detailed study of all the trees as a whole has been conducted, and the conclusion is that, beyond the look of the trees, its actual health is quite precarious. Therefore, an ambitious proposal has been chosen, which replaces a large part of those trees, while guaranteeing that a very ambitious alternative of planted vegetation will be implemented, thereby improving and substantially increasing the pre-existing number of trees using native species that will be perfectly integrated in the space. . The current situation is dominated by large areas of hard landscaping, which will be replaced by soft landscaping. It is calculated that the surface area of soft zones will be increased from 1.24 to 2.24 hectares, representing an increase of 80 %.
According to what has been announced by the owner of that space, which is El Corte Inglés, it plans on promoting the construction of a building there, with the consequent and simultaneous urban development of the surrounding perimeter. That is why it was understood that said space should be excluded from the proposal made in the Feasibility Study, without prejudice to the coordination that could take place at the corresponding time.