Vacational Building Cooperative of

Heraklion Merchants

1770 No. 28

T. +30 2810 341563 & 287244

Heraklion 15/10/2011

Dear Members,

For the first time for years, we’re going to announce some good news on the 30th of October 2011 General Assembly. We are happy to inform you that we have done the most significant step forward for the implementation of our vision. After so many insistent efforts, not only from our BD and technicians but also from MPs Maria Scrafnaki and Vassili Kegeroglou, we got an approval. We need to mention that we had also sent letters for that cause to Ministers Birbili and Sifounakis back in 2009.

For the record, in 2002 we were just before the Urban Planning’s pre-approval after the ok for the residential eligibility. But the “torture” started in 2004 when we received the rejection of the Urban Planning and the cancellation of our residential eligibility. Unfortunately, we had to start from scratch for our renowned accession to the article 24 of Law 2508/97 of PERPO.

After three years we successfully managed to overcome the following obstacles:

• The territory in which residential Cooperatives could develop was not defined. This was finally done in 2008!

• After this alleged-to-our-favour decision, an immense effort started from our side that felt like Jesus going up to Golgotha hill.

• Several public servants in the Ministry of Urban Planning inexcusably made every effort to postpone our development (so did they for 18 other similar cooperatives in Eastern Crete and others in mainland Greece). They raised the issue of the existence of pathways dividing the real estate in less than 50 acres’ pieces. They were also arbitrarily asking for new geological studies and certification of all the approvals we had since 1996. Facing all these huge problems we took the initiative of protesting and invited other cooperatives to do the same. All of us visited more than once the regional commander of Crete, the Cretan MPs and the Ministers of this and the prior government. Not to mention our environmental study had to be replaced thrice by new studies. Finally, we got the approval of our environmental pre-study (a huge file) from the EYPE service of the Ministry of Urban Planning in 2010.

The politicians’ interference –even delayed as it was- resulted to the absolution of the  unacceptable former Ministry controllers. This way we could work for our accession to the article 24 referring to new officers responsible for the residential cooperatives.

Having gone through all that, and during a period of relevant uncontrollability of the Cooperative, a new problem of great significance emerged. This had to do with a 3 acres ownership claim from Fragakis family. Due to the absence of a cooperative representative in court, the above mentioned family won the case. Thus, the Ministry’s legal department refused of providing us with the necessary documents. After that the BD started an attempt to solve the case. Fragakis family requested for the enormous amount of 180.000 euros for that piece of land and after of 9 months’ negotiations we ended up purchasing the land for 45.000 euros (before expenses). Then we received the legal approval from the Ministry.

However, there was a new implication regarding the lack of finality of judgment for the non-forest character for a part of our land (610 acres area). Constrainedly, there was a 2 months delay until last September when we received the final and irreversible approval for the above mentioned area as non-forest based on the 16-9-1997 document from the Lassithi Forest Service.

• On top of that, after two months’ efforts, we bypassed the obstacle of the limited number of members to 532, provided that our members are 633 for ten years now.

Just to show you the new BDs efforts’ extend, we mention that according to the Log the President Mathioudakis-Botis Panayiotis flew to Athens with the technicians-surveyors 11 times to visit the Ministry of Urban Planning. Moreover, there were minimum of 52 registered workshops between BD members and former President Diogenis Bakintas with the Cooperative’s technicians-surveyors. It’s worth mentioning that the final land to be developed is 628.559,39 sq.m. - after the removal of a piece that was delimited as part of the river. In this whole area, according to Decision 44410/13-10-2011 of the article 24 of Law 2508/97, there going to be 633 shares as many as the members of the Cooperative.  Having said that, the biological cleaning will not be situated at a nearby piece of land as was foreseen and approved until 2004 but within those 628.559,39 sq.m. In other words, the Urban Planning will be drastically changed as it came up by the first discussions between the relevant department of the Ministry and us.

Consequently:

1. The big step of our accession to the article 24 is done and over with the Decision 44410/13-10-2011 of the Ministry of Urban Planning.

2. The new Urban Planning follows with a new study of environmental effects (biological cleaning position etc.) where the final positions of the 633 shares will be defined.  We consider that this significant and core part will be accomplished and approved  – without bureaucracy- in 6 months time (all members will have the chance to participate in a special Assembly that the new Urban Planning will be presented).

3. The final stage of studies follows. That is the study of the application of the Urban Planning on the ground, as well as the studies of infrastructure i.e. full implementation of the Urban Planning of the Cooperatives’ land (road construction, water supply, drainage, lighting, biological cleaning etc.)

With the application of the application study we will be ready to begin with the infrastructure. We hope that this 3rd stage will be completed within a year (maybe less). It is our intention to follow the green development philosophy (bioclimatic and ecological planning, use of renewable energy sources, bicycle paths etc.) in order for us to be able to take advantage of relevant national and European programs.

All the above was hopefully a clear and comprehensive briefing for the Cooperatives’ course during the last few years, as well as the rest of the steps to be done. Ahead of us we have core steps with little bureaucracy. These steps are pleasant because they are of great importance and close to our vision. We believe that the tunnel is open.

As we are in a good track, let us all kick over the disinterest for the Cooperative which was rightly caused by the long delays and by which we are all fed up, and lets give a dynamic presence on the 30th of October. This way, you will give us the power to continue until the fulfilment of the final goal.  Obviously, the bigger the participation to the election process, the bigger the power of the BD to the Ministry and other organizations (Region of Crete, Municipalities etc.).

Furthermore, there was a recent proposal from the Heraklion OTE (greek telecom) Cooperative for the purchase of 35 acres real estate that belongs to our cooperative but is outside the development area borders . We therefore propose for this matter to be discussed on top of the agenda, so that if the Assembly agrees to authorize the BD to negotiate with the OTE’s BD.

Yours Sincerely,

The President                                                                         The general Secretary

Mathioudakis-Botis Panayiotis                                                        Giannaris Nikolaos