The Palma City Council has finalised the purchase of the emblematic GESA building and the two adjoining plots for a total of €25,365,575, thus consolidating the full municipalisation of the city’s seafront. This strategic operation puts an end to over 15 years of legal disputes and administrative claims with Endesa, which could have cost the municipal coffers up to €60 million.

The purchase was partially financed through funds from the Recovery, Transformation, and Resilience Plan, which contributed €10 million, while €16.9 million were allocated for the compensation and cancellation of urban planning obligations assumed by Endesa. Meanwhile, the two adjacent plots were acquired for €5,203,000, VAT included.

GESA Building

Photo: Palma City Council.

The transactional agreement signed by the Mayor of Palma, Jaime Martínez Llabrés, makes the City Council the owner of the building and its surrounding land, enabling the recovery of a key area of the city to be used for new public and cultural spaces. “The GESA building will become the driving force behind the Palma Culture and Innovation Bay, a transformative project that will promote Palma’s social and territorial cohesion,” the mayor highlighted during the signing ceremony held in the plenary hall, after which he visited the building accompanied by municipal and regional authorities.

The GESA building: a cultural and innovation hub

Listed by the Consell de Mallorca in 2007, the GESA building spans 15,915 square metres, consists of 13 floors (two of which are underground), and stands at 34 metres tall. Thanks to its strategic location facing Palma Bay, it will become the epicentre of the Palma Culture and Innovation Bay, a project aimed at transforming the Nou Llevant neighbourhood into a sustainable, cultural, and innovative district.

The building will house the future Municipal Institute of the Arts, a municipal library and archive, an auditorium, a cultural and exhibition centre, citizen service offices, parking facilities, and other public spaces.

“Today is a historic day for Palma. With this purchase, the seafront becomes the property of all citizens, marking a key step towards the Palma of the future,” the mayor emphasised.

The City Council will soon launch an ideas competition to design the transformation of the building, in line with its ambition to make Palma the European Capital of Culture in 2031.

Opposition criticism

Meanwhile, the Socialist municipal group has criticised the lack of planning by the PP-led municipal government, which intends to spend €80 million on the purchase and renovation of the GESA building without a clear project. According to the PSOE Palma spokesperson, Xisco Ducrós, this decision is “an absurd move that mortgages the city’s future while ignoring urgent issues.”

The Socialists in Palma insist that this budget should be redirected towards a Priority Municipal Investment Agenda, focusing on real solutions to improve citizens’ lives. With the €80 million earmarked for GESA, the city could:

  • Purchase 390 public housing units to ensure access to decent housing.
  • Acquire 100 new electric buses to improve EMT services.
  • Launch 20 new public facilities, such as nurseries, day centres, and community centres.