real estate

Vote on former Canal property angers residents

The action by the Asamblea Nacional is called "backroom politics" by opponents.

LA PRENSA

green light:The Asamblea Nacional gave the signal for going ahead with developing areas of the former Canal Zone.1031730

The Asamblea Nacional passed a law last night that will allow major projects planned for the former Panama Canal zone to go forward.

The law, which had been opposed by some residents of areas such as Clayton and Albrook, declared that these projects are "in the social interest."

"It was a classic [backroom maneuver]," said Carlos Varela, a lawyer for the residents.

The law was attached to a bill that sought to lower income taxes for some workers in certain tax brackets.

Residents were critical of the Asamblea's action because they say it will pave the way for unregulated development in the area, something that has plagued other parts of Panama City, particularly Bella Vista and Punta Paitilla.

"The sewage system is collapsing and the government has done nothing to fix it," one resident said after the bill was passed. "Now the aim is to build more buildings."

Opposition Legislator Leopoldo Benedetti opposed the measure, claiming that the government has a hard time justifying the fact that properties that are marketed primarily to foreign residents over the Internet and which cost hundreds of thousands of dollars are being constructed to benefit the "social interest" of Panamanians.

Varela said the law is unconstitutional and will be challenged in court.

"There may be a public policy change in land use, because this law only benefits certain developers," the lawyer said.

According to residents, they fear that the law will allow construction in environmentally-sensitive areas and the construction of multi-story projects in areas where there are now houses.