Work began to demolish two floors of a hotel which was being built on the site of the old Zeyko olive mill in Karaoglanoglu.
A court order halted the construction of the hotel in July 2016, after Kaya Artemis Hotel group added two more storeys over and above the existing planning permissions.
A report was published last August that Prime Minister Huseyin Ozgurgun had put pressure on Interior Minister Kutlu Evren to sign an amendment to local planning laws.
Considerable pressure not to permit the amendments was also exerted by local municipalities and the Kyrenia Initiative.
Kyrenia Mayor Nidai Gungurdu said that no exceptions would be made regarding planning laws for the company.
Yeni Duzen, Kibris News Agency