Madrid rejects Cordish’s "Eurovegas" project for the second time

It had already rejected the proyect at the end of March, when it understood that it did not meet the requirements to be an Integrated Development Center (CID), an exceptional legal entity that allows to some extent a real monopoly for the beneficiary. Cordish then decided to resubmit the project, with some changes, including an artificial beach the size of six football stadiums.

After analyzing it for two months, the new proposal did not like the Community of Madrid, who this Thursday had a technical meeting with representatives of Cordish to communicate the decision.

The regional government still thinks that Cordish's plan does not fit under the CID formula, which must have a multisectoral character, that is, a project that integrates not only tourism, business, commercial, leisure, gambling and entertainment services, but also sports, health and cultural. And the first phase of the Madrid Live! Resorts continues to rely mainly on the gaming.

It has not even convinced the novelty of including in the project an artificial beach, a kind of lagoon of six hectares where people can practice water sports, such as kayaking, surfing, windsurfing and beach volleyball. The Community of Madrid, through the Canal de Isabel II, has made a report on the technical and environmental impact of this beach.

Madrid could supply the water, with a cost for Cordish that would oscillate between three and five million euros, but as long as the reserve level of the marshes of Madrid is not in pre-alert situation, that is to say, with an estimate of capacity of 50% in the next 18 months.

The problem is that Cordish has proposed a system of maintenance based on rainwater, which needs the authorization of the Hydrographic Confederation of the Tagus, and a system of recycling of waste water that in Spain is not allowed.

For Cordish, it has always been key that the Community of Madrid accept its project as CID. This model was created at the end of 2012 by the former Regional Executive, chaired by Ignacio González. The law was then changed to pave the way for the star project of the time, the Eurovegas in Alcorcón. Today, a bad memory.

The CID, an exceptional legal entity, allows a real monopoly for the beneficiary, since once it is authorized it is prohibited to install new casinos in the region during the next 10 years. Not only that. The CID benefits the promoter when it comes to paying taxes related to gambling, since it only imposes a 10% tax rate, against the rate that is paid in a normal casino or a gambling hall, that is between 15% and 45%.

GMB / The Confidential