Planning dispute complicates permit for Reykjanesbær fish processor

The Suðurnes Health Inspectorate refused an operating permit to fish processor Premium of Iceland because the company’s premises are no longer designated for industrial use, mbl.is reported. Reykjanesbær Mayor Vilhjálmur Árnason says the municipality is working on a solution that would let the company continue operating there temporarily.

The company is based on Brekkustígur in Reykjanesbær, in a neighbourhood many know as Ytri-Njarðvík. The inspectorate’s refusal followed a municipal decision to change the area’s designation from industrial to a central zone with housing and services.

Premium of Iceland managing director Gylfi Markússon has accused the inspectorate of overstepping its authority when it denied the company a permit in the spring. Daily fines were subsequently imposed and upheld by the Environment and Planning Appeals Committee.

Inspectorate director Ásmundur E. Þorkelsson said it was standard practice, followed for decades, to seek the building official’s view before issuing operating permits. The company appealed to the committee, and a decision has been issued. Ásmundur said the committee did not directly address whether the inspectorate should initially have refused the permit, but noted that it found the original decision had no “obvious shortcomings.”

He said the permit was refused because the company’s operations did not comply with municipal planning. Asked whether all industrial activity in the area would have to leave, Ásmundur said at least no new permits would be issued.

A previous committee ruling said companies could not be stripped of permits that were valid when the planning designation changed. Ásmundur said it was then up to the municipality to work with businesses in the area on changing land use, although planning documents were not set in stone.

Vilhjálmur said the municipality did not intend to change its master plan, but needed to resolve the matter. He has worked on it since becoming mayor. Because land use is unclear in the master plan, he believes that, based on case law and the principle of proportionality, the company should be allowed to operate until other buildings are constructed or a new detailed plan is adopted.

“Unfortunately, when more than one public authority has to take a position and the situation is not clear enough, matters can end up in an administrative jungle,” Vilhjálmur said. He said the municipality was working with the company, others in a similar situation and the relevant agencies on both a temporary permit and a future location for the operation.