Brno councilors approved an amendment, paving the way to the Amazon center

Source
Zdeněk Meitner
Publisher
ČTK
26.02.2014 19:55
Czech Republic

Brno

Brno - The Brno city council today approved an amendment to the contract with the developer CTP Invest regarding the construction of the Amazon logistics center in the Černovice industrial zone. Two weeks ago, the city council suspended the project due to disputes surrounding the proposed construction of a highway exit. However, these disputes have now been overcome, so the American online retailer is most likely to build its center in South Moravia. The final decision will be made by the Brno council, which will discuss the contract on March 18. Amazon promises at least 1,500 jobs in Brno, and even more during the pre-Christmas season. Another distribution center is planned in Dobrovíz near Prague.
    In the new amendment to the contract, CTP has committed to purchase the land for the construction of the highway exit, which will then be transferred to the city. The city had previously resisted this. "I will present this material at the council meeting on March 18, and I believe it will be approved. This should send a clear signal to Amazon that the city wants them. Eight out of eleven councilors voted for it today," said Mayor Roman Onderka (ČSSD) after the council meeting. CTP perceives today's meeting as positive news, which it will communicate to Amazon. "Since three councilors abstained from voting and were not opposed, I believe that the voting within the coalition is secured," said CTP's regional director Tomáš Budař to ČTK.
    However, the city has not communicated with Amazon in recent days, and CTP representatives still did not know what the American company's stance on the Brno project is. After the council's vote, which rejected the original contract with CTP, Amazon hinted that other options besides Brno might be in play. "However, I have given them a clear signal that we want negotiations to continue. Now it's up to me to contact them and find out their position because the councilors will certainly ask me about it at the meeting," Onderka added. Similarly, Budař informed Amazon today. "We, like the city, will wait for their response. I believe this will be a positive signal for them, and they will decide to locate the project in Brno," Budař stated.
    The decision of the Brno councilors was welcomed by Prime Minister Bohuslav Sobotka (ČSSD). "I am convinced that this company's investment and the construction of the center will significantly help the South Moravian Region. One of the government's main priorities is the restoration of economic growth and the support of regional development, especially the creation of new jobs. The government is therefore ready to support such significant investments," Sobotka told ČTK. The Prime Minister believes that the council will approve the contract.
    Libor Šťástka, head of the coalition council club ODS, also left the meeting satisfied. He had previously proposed an amendment to the contract, which CTP rejected, and subsequently the councilors did not approve the original contract with CTP either. "Now, both the investor and the city have advantageous conditions. It is now up to Amazon to express to the council its interest in investing in Brno. They should also clearly declare that the 1,500 jobs will serve the citizens of Brno, or rather the Czech Republic, because 1,500 employees from the Balkans will not solve unemployment in the Czech Republic," Šťástka stated. He referred to Amazon's public promise at the last council meeting and it is up to them "how they will address this matter."
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