The City Government demands vacant land and leaves more than 700 families on the road and without work.
After 25 years, finally this Sunday, November 18, the Buenos Aires Design shopping center located in the Recoleta neighborhood, Buenos Aires closed the door. More than 700 families were left on the road and without work. The closure affected 70 design shopping shops and restaurants and bars, including Hard Rock.
Concession given to Emprendimientos Recoleta S.A. ended, whose majority shareholder was IRSA – real estate developer Eduardo Elsztain-, the owner of the main shopping center in the country. Although in October, the Buenosaire Legislature agreed to read the text of the law which would provide concessions for 15 years, can be extended for more than 5 years, the law anticipates that concession holders now extend the continuity of use with a period of at least 18 months until the property is given again. But to be a law it is necessary to go through a public hearing – not binding – and a second reading in place, something that is only planned for January.
Because it was discussed in the Legislature, the IRSA authorities and the City Government, tried to bring a position to continue shopping open until tendered. However, there is no agreement and the shopping center will close the door. Of the 70 original places, more than 15 have been closed in recent months.
From the City Government, they indicated: "On Sunday 18 concessions expire and IRSA must submit property under the conditions specified in the contract, free from residents and premises, it has a three-month grace period, until February 18 to deliver it."
Ramón Villaveirán, Manager of Public Affairs and Government of IRSA, explained to BAE Negocios: "We are willing to continue to operate the mall, actually a month ago we spoke with the Executive and we agreed to extend another 30 months, but Friday, Juan Franchi, who is responsible for the City Government's concessions, called us and told us that they would withdraw and unilaterally decide that commercial activities must stop at shopping centers. "
The IRSA executive added: "They will have to bear the political costs of leaving 700 families on the road, while at the same time issuing an anti-slip decision saying that the company must inform before making redundancies, it is not our decision to close, except one moment as important as this "You cannot leave so many people without work," explained Villaveirán.
Weather in shopping is a deep sadness, not only tenants, but employees have no entertainment. They tried to organize themselves and they ensured that on Wednesday they would cut the Libertador road at the top of the Pueyrredón, if they did not get an answer that guaranteed the continuity of their work. Even though most places have received eviction orders, it will not be so easy to vacate the premises.
The gastronomic workers ensured that they would not leave, that they would remain so much in January that the legislation in the Legislature was finally agreed to allow for an 18-month extension. Roberto Fontenla, president of the Chamber of Commerce and related businessmen and former tenants, said: "This is a disaster carried out by Ersa and the Buenos Aires government, half of the shopping has been closed, management is a disaster." Workers and tenants expect miracles, when organizing protests on Wednesday.