real estate

Plan in the works for Casco Antiguo area

David Mesa/La Prensa

stalled: OCA is looking to create a new program to revitalize Panama’s historic city center.1089469

The Oficina del Casco Antiguo (OCA) is working on a program that would create a “zona de amortiguamiento” in the area that would include the neighborhoods of El Chorrillo, Santa Ana and Calidonia.

The creation of the zone is the government's latest attempt to spur the revitalization of the area, which has some of Panama City's most historic buildings, but which also has areas of rampant poverty and dilapidated structures.

The OCA has formed an ad-hoc committee to discuss the issue at the technical level, and a draft bill has been prepared.

The proposed legislation includes tax breaks and other incentives, such as preferential interest rates on loans, for restoring historic buildings within the zone. It also includes restrictions on new buildings, including limiting their height to 20 meters.

Perhaps the most controversial part of the proposed bill is the transfer of property from the Banco Hipotecario Nacional to the Autoridad Nacional de Turismo. These properties include the demolished Mercado Público, the Obarrio mansion and all municipal buildings and lots that have not been earmarked for other uses.

Felipe Chen, vice president of the Asociación de Propietarios de Inmuebles (API), said that the initiative has not been properly discussed with those affected by it.

“We want public consultations in which investors and professional associations can participate, as is required under the Transparency Law,” he said. Chen said that limiting the height of the properties in the zone will scare away potential investors.

This area, he said, is attractive because of its location near Avenida Balboa, making it a prime spot for developers looking to build high-rise housing.

Ministerio de Vivienda (Mivi) official José Batista said that discussions about the proposed bill will be held with numerous groups, and that some aspects of the proposed legislation have already been discarded because they are not feasible.

OCA Director Ariel Espino said that a final draft of the bill will be presented to the Executive branch in the next two to three weeks.

He said that the government, though the proposed legislation, is seeking to create more public-private partnerships in revitalizing the area.