Extortion: Objectors will withdraw new construction complaints for money

Project developers say they are being extorted by people and organizations filing lengthy objection procedures against housing construction projects. These objectors are often willing to withdraw their complaints in exchange for a fee—substantial sums of up to 100,000 euros, NRC reports after speaking to over 20 developers.

Seven of the 20 developers are currently negotiating with objectors about dropping their complaints or have bought off a long-running objection procedure in recent years. Objectors risk nothing with their complaints. Regardless of the outcome, such a procedure can halt a project for years.

In a municipality in the west of the Netherlands, a project developer is negotiating with a religious community about a construction project next to their church. After many rounds of consultations and compromises, the religious community agreed. But shortly before the building permit became irrevocable, the developer received an objection letter from the religious community. After more lengthy negotiations, the project developer offered the religious community 100,000 euros, and they withdrew their complaint.

“This goes against all our principles,” the developer, who asked not to be named, told NRC. “I think it is ridiculous that I am being used as an ATM. But we cannot keep the people who will soon be living here waiting indefinitely.”

Joost van Kimmenaede, a project developer from Baarn, told NRC that about half of his projects get objections, and half of those end in a settlement. “This is not how the system should work,” he said. “A delay can easily cost tens of thousands of euros.”

Project developer Ernest van der Meijde also sees that objectors are very prepared to withdraw their complaints for money. “I recently had a former civil servant who wanted 100,000 euros for the legal costs and the many hours he had spent on legal proceedings. We will never do that, such an amount.” But he has paid 10,000 to 15,000 euros to get a project moving again.

Neprom, the trade association for project developers, speaks of a “highly undesirable development,” director Fahid Minhas told the newspaper. No project developer wants to buy off an objection, but even if a settlement comes with such a hefty price tag, it is often still cheaper than waiting for years until the Council of State finally rules on a complaint. “A construction project can be halted for three years. Developers often work with borrowed money and have to continue paying the interest in the meantime. In addition, you have to keep your people working all that time. This cannot continue.”