The Hotel Formentor has been the source of various controversies. | MDB

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Pollensa's mayor, Martí March, says the town hall doesn't anticipate having to pay compensation if nine luxury villas by the Hotel Formentor are not built.

The possibility of compensation has arisen because of a town hall moratorium on building licences in Formentor. This was approved at a council meeting at the end of January and appeared to be a response to a licence application for the villas that was lodged with the town hall by the hotel's owners in December last year. These villas would be Four Seasons 'branded residences'.

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The owners are demanding the annulment of the moratorium. They are argue that the licence application is fully compliant with requirements and have made clear they will sue for compensation if, in the end, it is not possible to build the villas.

March says the licence application was not "complete". "We are not worried about a possible compensation claim because we believe that, according to current regulations, they do not have the right to it."

The mayor isn't ruling out the possibility of the villas being built, but stresses that the main objective of the moratorium is "to protect Formentor". The decision to temporarily halt the granting of licences in Formentor stems from the need to update urban planning that dates back to 1990. The town hall explains that the current planning doesn't adequately protect an area with great environmental and landscape value.