A palazzo in Strait Street that once served as Valletta’s police station will have much of its interior demolished and be converted into an office block that will rise in height.

The dilapidated building was constructed in the early 1900s. At one time it was the Montecarlo Hotel before it housed the Valletta police station between 1956 and 1974.

The government of the time then requisitioned it and converted it into sub-standard housing where four families lived for years.

In 2006, the property was de-requisitioned and has remained vacant since. There is also a pending constitutional case over the property in question.

The plan is to have a cafeteria and restaurant at groundfloor level and an office block from the first to the seventh floor.

The existing five-storey building is flanked by an office block for the judiciary on one side and on the other by a corner block which was recently granted a permit to be converted into offices, with an additional two floors.

The Planning Authority last year granted the applicant, Gino Trapani Galea Feriol, a permit to demolish the interior of the former palazzo, retaining only the façade, the original hallway and the spiral staircase, all of which have high historical value.

The permit was discussed again by the Planning Authority board last week after the applicant filed for reconsideration of an €85,000 fee imposed as payment due to the Commuted Payment Parking Scheme (CPPS).

This is because the project fails to offer off-street parking.

The applicant also asked the board to reconsider a €32,200 guarantee requested by the Planning Authority as one of the conditions for the permit.

The case officer explained that the guarantee was based on the features of the property, including the façade, any closed or open timber balconies, the vernacular hallway and the spiral staircase.

The applicant’s architect, Edwin Mintoff, argued that the guarantee imposed on similar projects in Valletta was substantially lower. One in Merchants Street, for example, was asked to pay only €4,000.

While the Planning Directorate recommended the refusal of the request to reconsider the guarantee, it admitted it had made a mistake when calculating the amount due to parking spaces, which was meant to be €71,300.

The board turned down the request for reconsideration but lowered the amount due to the CPPS.

The permit is being appealed.