New Urban Development Law for the State of Nuevo Leon

October 12, 2009
New Urban Development Law for the State of Nuevo Leon

On September 9, 2009, the Official Newspaper for the State of Nuevo Leon published the new UrbanDevelopment Law for the State of Nuevo Leon (“UDL”), which will become effective on November 8, 2009. TheUDL provides, among other new provisions, the following: i) Dedicated land: the UDL preserves the concept ofdedicated land for the development of real property as well as the construction of real property on 7% to 17% ofsuch dedicated land outside the limits of a subdivision, depending on the existing land use of the dedicated land.Nevertheless, the UDL mandates that 17% of dedicated land must be subdivided with constructions with morethan 5,000 square meters each, independently of the existing land use. The dedicated land cannot be subject toencumbrances such as electric utility easements and other encumbrances. Federal courts in Mexico have declaredthe unconstitutionality in the imposition of encumbrances on dedicated land; ii) the UDL orders all governmentauthorities with subject matter jurisdiction on urban development to prepare a Risk Atlas that identifies risk areason which development will be precluded if risk on such areas cannot be mitigated. Government authorities willprepare the Risk Atlas; iii) in the event that land is declared as a territorial reserve, the State or the municipalitiesmust acquire such land within the next 5 years after such declaration is made in the urban development plan. Private individuals, however, may not use streets and other rights of way in such territorial reserves even after 5years after the corresponding declaration, thus affecting the property rights of private individuals; and, iv) lightindustry is defined as industry that does not handle hazardous, inflammable, corrosive or radioactive materials,nor produce flashing lights, vibrations or noise that exceed the limits set forth by the Official Mexican Rules ineffect without the use of special equipment; electricity consumption that does not exceed 10 Kvas and no railroadconnection into the facility. Industries that do not fall into the definition of light industry will be deemed as heavyindustry. It will be necessary to review the criteria used to implement such law together with the urbandevelopment plans in order to determine the scope of this deficient definition.

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