Amazon in Brno is unlikely to happen, councilors did not approve the contracts

Brno - The city representatives in Brno today did not approve any of the contracts that would allow the American online retailer Amazon to build a distribution center in the city. In one resolution, they rejected both the contract with developer CTP for the sale of land and the contract with the Directorate of Roads and Motorways for the construction of a highway exit. Thus, the company will most likely move elsewhere. Minister of Industry Jan Mládek told reporters that he will now try to offer Amazon another location in the Czech Republic so that it does not leave for abroad.
    The key problem became the nonexistent exit from the highway to the industrial zone of Černovická terasa and the unwillingness of the developer CTP to take on further commitments regarding the construction of the exit. The decisions were pitted against each other: to reject at least 1500 jobs or to burden the traffic of the southern parts of Brno, where over 20,000 residents live. The traffic there is already excessively high.
    "The Amazon project in Brno is, in my opinion, dead. The representatives made a wrong decision at a time when unemployment in the Czech Republic is at its highest in history," said CTP CEO Remon Vos to reporters. The director of Amazon's European investments, Raimund Paetzmann, was somewhat more conciliatory. "I remain optimistic. Unfortunately, difficult problems have arisen here. We will see in the coming days what will happen next," he stated.
    Brno politicians on Thursday proposed an amendment to the contract with CTP. In the original version, the developer committed to paying 214 million for the land and contributing 56 million to the modifications of the intersection of Řípská and Tuřanka streets. To motivate CTP as much as possible to quickly build the highway exit, the representatives wanted to lease the land to the company first and then sell it only when a building permit is obtained. "This way, CTP would have a strong interest in acquiring the land as quickly as possible. That involves the most work and the largest delays. We cannot afford to expose over 20,000 residents to immense traffic burdens," said councilor Libor Šťástka (ODS).
    However, CTP rejected this amendment. "Banks will not finance the project for us if the land is not ours. Moreover, we would not be able to obtain a building permit," Vos claimed.
    Last week, Prime Minister Bohumil Sobotka (ČSSD) declared that the highway exit is a priority for the state with allotted funds. However, the exit had already been a priority for the government in 2000. Optimistic estimates suggested that the exit could be completed by 2017. However, as pointed out by Brno Deputy Mayor Robert Kotzian (ODS), this would only be possible if the land acquisition were completed by the end of the year. "That is unrealistic," he stated.
    Mayor Onderka did not agree with the outcome of the vote. "When the emotions cool down, I will instruct Deputy Mayor Oliver Pospíšil (ČSSD), to continue discussions with Amazon and CTP about the possibility of continuing the project. We are not giving up yet," he said.
    However, Mládek stated that he would now try to offer Amazon another location in the Czech Republic so that it does not leave for abroad. The Americans had previously hinted that they had options in Austria or Slovakia.
    The massive investment, which was expected to exceed 100 million euros (2.7 billion CZK), thus failed due to the unpreparedness of the transportation infrastructure. "That is still an unfortunate legacy of forty years of communism. Since 1989, we have not managed what they had time for in Austria or Germany. It is hard to blame the post-November governments for that," Onderka stated.
    In the second location in the Czech Republic where Amazon wants to invest, in Dobrovíz near Prague, representatives narrowly approved a memorandum of cooperation and a contract with the developer on Thursday. The municipality is located near Václav Havel Airport in Prague.