Home Europe LVMH’s real estate project under scrutiny from Parisian council member

LVMH’s real estate project under scrutiny from Parisian council member

by editor

PARIS — On April 23, Parisian ecologist council member Emile Meunier, along with fellow officials and associations, initiated legal action against an imposing structure covering an LVMH building on the Champs-Élysées, which they deem an “illegal giant advertisement” during renovations. Shortly thereafter, he raised concerns about another issue that has been troubling him, as he shared with POLITICO.

Concerns over urban development

This council member from the 18th arrondissement, who leads the Paris Council’s urban planning committee, is scrutinizing a nearly 7,000-square-meter plot within the Jardin d’Acclimatation, recently annexed to the site of the former Museum of Arts and Popular Traditions (MATP). Both properties are under LVMH’s management, albeit through different legal entities and administrative frameworks with varying durations.

Despite a decision by the Paris Council in April authorizing the mayor to proceed with the project, Meunier sent an email to Patrick Bloche, the first deputy to Mayor Anne Hidalgo, seeking clarification. Unsatisfied with the response, he is contemplating submitting a written question to the Paris executive and presenting a motion at the upcoming city council meeting, possibly leading to legal action. He states, “I am on the verge of taking this further,” expressing his concerns about the advantages he believes the luxury group might gain from the transfer at the expense of the capital and its residents.

Public space privatization issues

The MATP site, which closed in 2005 and remains under municipal ownership, is subject to a public space occupancy agreement with LVMH signed in 2017. This agreement is set to last for 50 years starting from 2022, allowing LVMH time to undertake significant renovations, estimated at €158 million, to convert the old museum into a cultural center slated to open in 2026 or 2027.

A subsidiary of LVMH, the Société du Jardin d’Acclimatation, has been operating the amusement park since 1995, under a public service delegation renewed in 2015 for 25 years. Consequently, LVMH has effectively doubled its operational period over this plot without any increase in the fixed fee paid to the city. An associate of Patrick Bloche mentioned, “The change is not significant enough to warrant an increase.” Nonetheless, the variable fee based on site revenues is expected to rise mechanically.

“A new blank check” for Bernard Arnault’s group, denounced Meunier during the April Paris Council meeting.

In response, Patrick Bloche argued that the site’s transformation is minor, ensuring that

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