New Ibirapuera Complex would pay R$ 737 million in IPTU, study shows; properties provided for in the concession will be exempt – Prime Time Zone

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Today, the space has a public purpose and is geared towards the practice of sports; construction of a shopping mall and hotel may change its objective, despite the sports area that will be maintained

Disclosure/Government of SPThe concession of the Constâncio Vaz Guimarães Complex to the private sector for 35 years was approved by Alesp in June 2019

A study carried out at the request of the association of residents of the region of the new Ibirapuera Complex indicates that the concessionaire that will manage the space should pay BRL 737 million to the City Hall of São Paulo referring to Urban Property and Land Tax (IPTU). However, as it is public land and equipment with the same purpose, the tax should be exempt. The amount represents 76.6% of the total investment by the private sector, of R$962.4 million, for the 35-year concession. The Ibirapuera Gymnasium is managed by the state government, but is on municipal land. Today, the tax is not levied on the grounds that the place has a public purpose and is geared towards sports. With the planned changes in the concession, the construction of a shopping mall and a hotel, the main function of the Complex must be modified — even though it maintains the sports areas. The State government plan, under the management of João Doria, is to modernize the space and build a multipurpose arena with capacity for 20,000 people, in addition to commercial buildings and a parking lot.

Forecasts are that the private sector can profit up to R$ 2 billion from the space. The estimated total grant to be paid to the public coffers is R$ 155 million. Although these values ​​are not final, they are used as a basis for negotiations. In addition to the IPTU exemption, the buildings would also be exempt from the Onerous Grant of the Right to Build (OODC). The study was carried out by the ODX consultancy, published by G1 and analyzes public data for the city, in addition to the concession information available so far. According to the document, there is no legal justification for maintaining the exemptions with a change in purpose. The concession of the Constâncio Vaz Guimarães Complex to the private sector for 35 years was approved by the Alesp in June 2019. One of the justifications would be the cost of maintaining the space of R$ 15 million per year. Despite predicting the demolition of the current gymnasium for the construction of the new arena and commercial buildings, the Doria government faces obstacles for the public notice. One of them is a registration process, still under analysis, at the National Historical and Artistic Heritage Institute (Iphan).