Judge César Millanao of the 2nd Court of Letters in Punta Arenas ordered the retention of amounts allocated by the Housing and Urbanization Service (Serviu) of Magallanes as part of the expropriation of the Punta Arenas Horse Racing Club for the construction of housing and green areas, a decision made in November of last year. This was in response to a request submitted by Serviu to the court, asking to retain the amounts as part of the expropriation, since the Ministry of Housing and Urbanism, led by Iván Poduje, decided to withdraw from the mentioned procedure. “The retention of the amounts allocated by the expropriator is ordered,” said the judge.
The process was initiated during the Boric administration and a compensation of US$ 22. 7 million had been set, but the landowner launched a legal challenge demanding a payment of at least US$ 53. 8 million.
The expropriation is part of an initiative promoted under the Just Cities Plan and the Housing Emergency Plan, which aims to enable strategic lands for the development of green areas, urban facilities, and housing solutions. However, on March 23, Minister Poduje sent a formal letter to the director of Serviu in Magallanes “to instruct the withdrawal of the expropriation of the property indicated as the Punta Arenas Horse Racing Club. ” In the mentioned letter, the state secretary detailed that Serviu of Magallanes issued the expropriatory act as part of a housing and urban development project.
“As of now, the expropriation process is underway, without the corresponding check for compensation having been issued, so the ownership of the expropriated property has not transferred to the State,” he stated. He also referred to a letter from the Ministry of Finance called the Fiscal Adjustment Plan, which mandated a transversal reduction of 3% in gross spending immediately across all ministries and public services, a freeze on hiring, and the suspension of any disbursement that does not constitute a current and unavoidable legal obligation. “The payment of the compensation associated with the expropriation process in question would involve a significant budgetary outlay that is not compatible with the restrictions imposed by the aforementioned circular, as it does not yet constitute an enforceable legal obligation—given that the check has not been issued—and the public work or purpose that motivated the expropriation is not in a condition for immediate execution,” said the minister.
The lawyer for the society, Felipe Molina, argues that, according to Article 20 of the Expropriations Law, once the provisional compensation is allocated, “the ownership of the expropriated property will fully and originally reside in the assets of the expropriator. ” "We will ensure that any administrative act affecting us complies with the regulations governing it, without arbitrariness or illegality, as well as for the compensation of all damages caused to our assets as a result of this process," he told this media outlet.