‘Theory and practice have yet to come together,’ kicks off the lawyer. In a spirited conversation that follows, she tempers the hopes that some real estate entrepreneurs have placed on the new Environment Act that will come into force on 1 January 2024. ‘It will not provide a solution for those waiting for a breakthrough in a stalled project, that is wishful thinking,’ she says. ‘Indeed, I think for many project developers in 2024, the focus will be on learning how to work with this new law. A serious change of legislation is coming to the market, with different interpretations in parts. And that’s just talking about legislation.’
She continues: ‘It is now also the zeitgeist in which we live that, in addition to market conditions, makes it even more complex. The real estate sector is undeniably juridified. No one can deny that, simply by Googling online, you can find articles in which one party criticizes the other, often leading to a deadlock. Everyone is allowed to think something and all those opinions often lead to unnecessarily long procedures. One of the major problems is that many municipal authorities already have a serious capacity problem when it comes to assessing permits and objections. This sometimes causes delays in both the granting of permits and their irrevocability.
With nitrogen issues in property developments and the imminent introduction of the Environment Act, Pelin Oztürk is used to something. Seemingly, the young lawyer operates non-stop in top gear. There is a continuous flow of work coming her way. Especially this year, when real estate professionals have been firing questions at her daily. ‘Most are worried about the great unknown. And I can understand that. It is now a paper truth, the Environment Act, and it should be given time to quietly land later.’
How different was the lawyer’s world some time ago. When the Environment Act seemed remote for the sector and Pelin Oztürk was trying to get the topic on the agenda. ‘During presentations, I saw real estate professionals with gaping faces in the room. Something like, ‘We will cross that bridge when we get there’. Now you see men and women sitting up straight and taking notes when I give a presentation. That tells me how it lives.’
And it was (and is) noticeable. ‘In Q2, it got busy with questions about the introduction of the Environment Act and the impact on existing projects. Since then, it hasn’t stopped for us. Together with clients, we are preparing for something substantial. And I can say: Lexence will be ready in 2024 to deal with the new Environment Act and provide the best advice in it.’
Environment Act
She outlines the history of the Environment Act. ‘It is the biggest change since 1848 and we have been talking about this since around 2014. The Environment Act was originally supposed to come into force in 2018. But that date was postponed several times. There were too many snags in the introduction and especially in the digital system (Digital System for the Environment Act), which is supposed to be the single point of information for citizens, providing information on what can or cannot be done.’
She knows exactly. She joined Lexence herself in September 2018. A native of Rotterdam, she feels at home at the leading Dutch law firm with an international Zuidas profile. Administrative law, with a focus on environmental law, is her domain. ‘I’m a bit of a …. How do you say that neatly? A professional idiot. When I ride my bike around town, I have to pay close attention to traffic; I prefer to look at all completed developments or projects in the pipeline. Then I fantasise about possibilities and solutions in cities. I can’t stop talking about it at home. From my friends, it could be a bit less. Even though they all work in the same corner. Yes, this equal passion for real estate and urban development is necessary in my environment. Otherwise it won’t last with me.’ She smiles broadly.
She targets investors, developers, asset managers and other professionals in the spectrum of spatial planning and urban development. She spars, gives advice, digs into case histories and case law. ‘There are untold numbers of spatial decisions to be made in our country. There are just as many interests involved. In the preliminary advice, in the legal route and the choices that have to be made. Neighbours and environmental movements are constantly looking over our shoulder, an association is set up on every street corner. A real estate professional cannot always and all oversee that. That is what we are there for.’
Jurisdiction
In 2024, a new and much-discussed law will come into effect, serving a series of goals, with simplicity and flexibility being the main ones. ‘We need easier decision-making about the physical environment and good environmental quality. The physical living environment is not just about building and development. It also involves other aspects, such as noise, air, water, safety, et cetera. Together with real estate professionals, we determine which paths are best for a specific project and what opportunities we see in this respect. Do you go for a new environment plan or should a different route be taken? Choosing certain steps sometimes involves interpretation of certain issues or topics. And that is where our expertise and added value for the real estate sector lies. Taking the right turn with our client is sometimes the difference between an extra year’s delay or being able to start after a year.’
The coming years will be even more about justice. And may require a long breath in the current times, says Pelin Oztürk. ‘Those who had the vain hope that by 1 January 2024 it will all move faster, I fear I must disappoint’. The Environment Act offers municipalities that want to make use of it the opportunity to set their own accents soon. The implementation of the Environment Act will not always be unambiguous. To real estate professionals, I therefore say: prepare for learning moments and experiences in 2024. Because that is where the focus will be.’
She makes up an example to reinforce her argument. ‘Take Zaanstad. I can imagine the municipality there applying its own rules on odour emissions and areas to be developed. For example: yes, that cocoa factory is there and that means that with a certain wind there is always nuisance for built-up areas. We don’t want to intensify that yet, so we are going to limit the development space until there is more clarity on what we are and are not going to allow in municipality. This is fictitious, but such discussions about environmental plans in relation to liveability are definitely going to happen.’
Nitrogen
She takes a sip of her water. ‘Nitrogen, another problem child in real estate developments,’ she jokingly states. ‘This has been causing delays and uncertainty in the sector for a few years now. Until 2019, there was the PAS (Programme Approach to Nitrogen) and in cases you could suffice with a notification and did not need a permit. Now this is different. A deposition of Nitrogen on a Natura 2000 site of more than 0.00 mol ha/yr basically requires a permit. At Lexence, we have gained a lot of experience here in recent years. That has given us a wealth of information, which we now put to use for our clients. We regularly look and think along with real estate professionals. The aim is often to get a positive opinion from a competent authority as quickly as possible. Clarity and speed, that is what our clients, but in fact our whole country, benefit from.’
In a year in which the physical environment will have a more prominent role, the crisis will continue for some time to come and projects may start experiencing delays, Pelin Oztürk is positive. ‘There will be pressure from all sides and that pressure will end up on decision tables anyway. Starting with the elections and the formation, with the housing shortage and property sustainability as big dossiers. Yes, we have to deal with nitrogen and yes there will be an Environment Act, but we will have to move forward regardless. I have every confidence in that. Under pressure, everything liquefies. And we will use our knowledge wherever possible to ensure that projects find their way. It promises to be an incredibly exciting year. I’m looking forward to it!
