FLAMENGO STADIUM: CAN CAIXA DISPUTE THE AUCTION VALUE? UNDERSTAND THE SITUATION

The expropriation of the Gasometer land, announced by Rio de Janeiro City Hall, was considered a fundamental step for Flamengo to advance in the construction project of its own stadium. Now, there are a series of steps and bureaucratic procedures to be completed.

“We are in a preliminary phase. Expropriation is an institute of administrative law, which serves the purpose of transferring the movable or real estate property of a private individual to the public authority for reasons of legal interest. Law 3365 of 41 regulates the cases in which expropriation is applicable and, among them, is for reasons of reurbanization and construction of a stadium. Therefore, it is clearly within the legal hypotheses. The publication of the expropriation decree in the Official Gazette begins this transfer process”, began Felipe Fonte, from FGV Direito Rio.

After the publication of the decree in the Official Gazette, Flamengo awaits the publication of the notice of bidding for the auction of the land, which belongs to Caixa Econômica Federal. The City Hall's decision came after Flamengo and Caixa failed to reach an agreement on the value of the 88 thousand square meter plot of land, in the São Cristóvão neighborhood, in the North Zone of Rio.

Professor Felipe Fonte explained in What is the position of Caixa Econômica Federal as of this decree, remembering that the company may contest the value defined by the municipality of the land.

“The municipality has a technical body that carries out an expert assessment. In this case, you have already done so to find out how much the property is worth. You will then arrive at Caixa and ask if you accept this amount as a form of payment. If Caixa says yes, the expropriation process is over, the property will be transferred and that's it," said Felipe Fonte, before addressing another possibility.

"If the answer is no, the municipality will have to file a lawsuit, which we call an expropriation action. The objective, in a very brief way, is to verify whether the price offered by the municipality is fair. In this process, there will be a judicial examination, where the parties will be able to indicate their respective technical assistants. discussed and a value will be reached that will be declared by the judge in a sentence. The transfer of the property will only occur when the municipality actually pays this amount fixed in the sentence”, he concluded.

The Gasmetro land was defined as “favorite location” by the Flamengo board for the project of its own stadium in 2022. Ease of access is a determining point for the decision, which evaluated other points in the city of Rio de Janeiro, such as Deodoro and Parque Olímpico, in Barra da Tijuca, both in the West Zone, but these options did not prove to be viable.

Gasologista is part of the Porto Maravilha Project region, an area that has received investment for urban revitalization for years. The location is close to the Novo Rio Bus Station and the recently opened Gentileza Intermodal Terminal, and to the city's main entrance roads, such as Linha Vermelha, Avenida Brasil and Ponte Rio-Niterói.