Building plot sale - Municipality pays only 25% of the actual price

Hello.

For financial reasons, I am forced to sell two building plots. However, the municipality has now announced that the so-called local residents model applies. This means there is a quota of 60:40. I can therefore sell 60% at the normal price of 90 euros, and 40% I have to sell to the municipality. The municipality pays only 25% of the normal land price, that is 22.50 euros. The municipality then sells this again to local residents at the price of 80 euros.

My question now is: is it lawful that the municipality only pays 25% of the normal price? I generally find the local residents model good, but paying only 25% is a bit harsh.

Thank you very much in advance.

Hello,

first, an excerpt from the Building Code:

The legal basis of the "local residents model" is Chapter 1, Part 1, Section 4. It states: "The municipality can conclude urban development contracts. Subjects of an urban development contract can in particular be: (…) § 2. the promotion and assurance of the objectives pursued by land-use planning, especially the use of land, also regarding a limitation in time or a condition, the implementation of compensation according to § 1a Paragraph 3, the coverage of housing needs of population groups with special housing supply problems as well as the housing needs of the local population."

My question now: is it legal that the municipality only pays 25% of the normal price? I generally find the local residents model good, but paying only 25% is a bit harsh.

The municipalities determine such things independently and ultimately you must not forget one thing: the municipal coffers are empty and this model allows some money to flow back into the till ;)

BUT:

The local residents model contradicts the freedom of movement and freedom of establishment guaranteed in the EU Charter, says the EU Commission. Especially under scrutiny are the different municipal land prices for locals and newcomers in some municipalities along the Danube. Therefore, the EU Commission has initiated infringement proceedings against Germany. Now it is going into the decisive round. But Germany seems to have poor chances. All written justifications have so far been rejected. Now Germany has a final two-month deadline to defend its local residents model. If Germany fails to convince the EU Commission by September, a lawsuit before the European Court of Justice threatens.

Source: BR-online from 29.10.2010

Kind regards