ARTEKS is building Zlaten Vek Building

Confident in the quality of its investment and for the sake of Sofia's economic prosperity.

The legality of all the actions taken by ARTEKS ENGINEERING AD concerning the construction of the Zlaten Vek Building has been definitively confirmed by the detailed reasoning of the Supreme Administrative Court (SAC) and the SAC's Analysis and Interpretation Unit. The letter dated 24 November 2023 was signed by the President of the SAC.

The decision of the Zlaten Vek case (and probably of other similar, but not so well-known cases in the media) came after a request submitted by the Minister of Regional Development and Public Works to the Supreme Administrative Court (SAC) for the initiation of an interpretative case about the application of legal provisions related to the validity period of building permits and the validity of orders for the completion of building permits.

In the request, the Minister raised three issues for interpretation by the SAC:

1. Do the orders for supplementing the building permit issued before the changes in the Building and Construction Law 2021 renew the validity period of the permit?

2. What is the type of validity period of the building permit and do the rules for interruption or suspension apply?

3. In the case of a building permit renewal, from which moment is the time limit for completion of the construction considered renewed?

However, after analyzing all the case law on the texts in question, the Court formally refused to initiate an interpretation procedure because it did not find any contradictory case law on the questions raised by the Minister, in the detailed grounds for its refusal the Court gave obvious answers to two of them.

First of all, the orders under Article 154 of the Building and Construction Law for supplementing the building permits issued before the changes in the Building and Construction Law of 2021 renew the validity period of the building permits, i.e. from their entry into force a new validity period of the permit they supplement starts. On this point, the SAC has categorically held that the courts' case law is inconsistent.

It is only in 2021 that the legislature decides to introduce a new rule, which, however, is effective prospectively and does not affect the orders already issued under Article 154 of the Planning Act and the legal effect produced by them.

Applying this principle to the specific facts of the Zlaten Vek case, it appears that the building permit is valid until 6 August 2028. This is because the last order under Article 154 of the Planning Act for the building was issued on 6 August 2018, by the date of issue, construction had already commenced and therefore a new 10-year period for completion of the rough construction commenced from the date of entry into force, which will only expire in 2028. The rough construction of the Zlaten Vek Building was completed at the very beginning of 2022 (i.e. well before the deadline), and on 11 October 2022, the developer was also able to obtain an official certificate of completion of the rough construction.

Furthermore, the SAC considers that in the presence of objective preconditions that constitute an obstacle to the execution of the construction, the validity period of the permit does not expire.

In the case of the Zlaten Vek Building, the construction of the building was suspended in the period from 14 April 2019 to 13 May 2021 (a total of more than 2 years) by an order of the National Construction Control Directorate, which the court annulled as unlawful.

The issuance of an order to stop construction by a competent authority undoubtedly constitutes an objective obstacle to the performance of construction works. Since the building permit for the Zlaten Vek building was revalidated on 19 November 2012, however, taking into account the time in court during which the developer was objectively prevented from the building (24 months and 28 days), the time limit for completion of the rough construction, according to the opinion of the Supreme Administrative Court, would have been extended to 17 December 2024. (without even considering the separate ground for renewal given by the order under Article 154 of the Building Code - until 6 August 2028).

Considering the reasoning of the SAC and in response to the ongoing queries on the subject raised by a Member of Parliament from the 49th National Assembly, the Ministry of Regional Development and Public Works just a few days ago (15 February 2024) came up with a response, published on the website of the Parliament, which dispels even the slightest doubts left in the mind of the MP in question.

The ARTEKS team is delighted that after years in which Zlaten Vek was the subject of heavy court battles, became hostage to political interests, and unwittingly became a media sensation, it can now continue its real work. We can show the creativity of contemporary Bulgarian architecture, build with the precision and quality that should be standard in Bulgaria, and create a building befitting a European capital with an eye to the future. "Good cities are rich cities", says Mayor Vasil Terziev, and Zlaten Vek contributes to this self-confidence of Sofia.