Under the plan, Endesa will retrieve ownership of the building and be allowed to undertake development, but not on the seafront.
This is considered to be a degraded area which at night becomes an improvised store for illegal street selling and also the sale of drugs.
The report warns that the development would be in breach of a 2004 agreement that regulates municipal use of the old Gesa area.
Under the terms of the moratorium, a large development is defined as being greater than 700 square metres.
Mayor José Hila insists that the district requires a comprehensive strategy to combat degradation that has occurred in recent years.
Playa de Palma
The councillor for urban planning has asked for a report from the unit that drew up the PRI in order to see if discrepancies do indeed apply.