7.11.2006 Official Journal of the European Union L 307207 COMMISSION DECISION of 4 April 2006 on State Aid No C 33/2005 (ex N 277/2004) which the Netherlands is planning to implement under the Marktpassageplan project in Haaksbergen (notified under document number C(2006) 1184) (Only the Dutch text is authentic) (Text with EEA relevance) (2006/746[EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Commu- nity, and in particular the first subparagraph of Article 88(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having called on interested parties to submit their comments pursuant to the provisions cited above, Whereas: ©) 1. PROCEDURE By letter dated 23 January 2004, registered as received on 23 February, a complaint was sent to the Commission about possible aid concerning a building project in Haaksbergen in the Netherlands. By letter dated 15 April 2004, the Commission asked the Dutch authorities to provide clarification of the measure. By letter dated 18 May 2004, registered as received on 25 May, the Netherlands informed the Commission that the measure would be notified shortly. By letter dated 25 June 2004, registered as received on 30 June, the Netherlands notified the Commission that the Haaksbergen municipal authorities were planning to grant aid to the construction companies involved in the Marktpassageplan project. By letter dated 12 July 2004, the Commission requested further information, which was provided at a meeting on 8 October 2004 and by letter dated 30 December 2004, registered as received on 10 January 2005. The Netherlands submitted additional information by letter dated 11 May 2005, registered as received on 18 May. By letter dated 21 September 2005, the Commission informed the Netherlands that it had decided to initiate the procedure laid down in Article 88(2) of the EC Treaty in respect of the aid. The Commission decision to initiate the procedure was published in the Official Journal of the European Union () . The Commission invited interested parties to submit their comments on the aid. It received no comments from interested parties. The response of the Netherlands to the initiation of the formal investigation procedure was submitted by letter () OJ C 333, 29.12.2005, p. 2. dated 29 December 2005, registered as received on 5 January 2006. 2. DESCRIPTION 2.1. The project The municipal council of Haaksbergen, a municipality with 24 000 inhabitants located in the province of Overijssel close to the German border, had been hoping to regenerate its neglected centre since the beginning of the nineties. With the help of consultants, different construction plans were studied in order to provide quality housing and commercial premises. However, neither an initial construc- tion company with which the municipality intended to carry out the project nor the municipality itself was able to acquire the necessary plots of land. At the end of the nineties, six construction companies acquired the plots of land concerned and then joined forces. They drew up a building project consisting in the building of 58 apartments and 11 commercial premises. The project did not involve the construction companies in any public works, such as infrastructure, that would subsequently be handed over to the municipality. The project was for the construction of apartments and shops that were to be sold or leased to private investors. However, the calculations showed that the project would not be profitable. 2.2. Support from the public authorities Given the great importance it attached to the project presented by the six construction companies for regenerat- ing the centre of the municipality, the local authority, in the knowledge that it could count on receiving a financial contribution from the province, agreed to support the project, mainly by covering the expected losses. The municipality has already signed the cooperation agreement with the construction companies, but the aid provided for in the agreement has not yet been granted. The public support will mainly take the form of a grant of €2,98 million from the municipality to the construction companies (Measure 1). This amount includes the financial support of €453 780 (NLG 1000 000) granted by the province for this project and represents the expected project losses calculated on the basis of the anticipated costs and revenues.