The area of the former institute in Králíky will be purchased by the company for 19.58 million CZK

Králíky (Orlickoústecko) – The site of the former children's correctional facility in Králíky will have a new owner. In a repeated auction, it was acquired today by its only participant, a legal entity, for the starting price of 19.58 million crowns, said Michaela Tesařová, spokesperson for the Office for Representation of the State in Property Matters (ÚZSVM). The office had offered the site several times since last September.

"A protocol on the auction was signed with the winner, who must pay the remaining purchase price within 90 days. Upon payment, the ÚZSVM will submit a proposal for registration in the land register and subsequently hand over the site to the new owner,” Tesařová stated.

The properties were purchased by the company Sněžník, which operates a large year-round recreation area in nearby Dolní Morava and had shown interest in the property before. "We want to use them for housing purposes. Both city residents and our employees will live there. We do not plan commercial use,” said Martin Palán, the company’s director, to ČTK.

Today's auction was the fourth. The starting price decreased from the original 35.6 million to 28.5 million crowns, then to 24.92 million crowns. However, this did not convince potential buyers, and no interested party participated in the auction.

The site consists of four buildings with built-up parcels and four additional plots. The main building is three stories high and partially basemented. The building from 1883, which has two wings, contains classrooms, rooms, staff rooms, cabinets, a gym, a workshop, a laundry room, a kitchen with a dining room, five apartments, offices, and storage spaces. The estimated value of all properties in the complex was 33.6 million crowns, while the usual price is 21 million crowns.

The extensive area of 39,252 m² has been abandoned since the end of 2014. The Ministry of the Interior initially wanted to use it as a residence facility for asylum seekers. This was opposed by some residents of the city as well as by certain politicians. They were concerned that the presence of foreigners would harm tourism in the region, that immigrants would not integrate into the local community, and that they might not feel comfortable in a small town. Eventually, the ministry abandoned the plan and transferred the property to the Ministry of Justice, which proposed to establish a prison in Králíky. However, locals expressed their disapproval of the prison in a referendum held at the end of 2016. Although the vote was not binding for the ministry, last summer it withdrew from the plan.

The city of Králíky also sought to acquire the site. It wanted to use the large main building for housing and social purposes. The city requested a free transfer from the ÚZSVM, but the office did not comply with the request.