Brno will not sell the Technology Park this year; tax revenues have improved

Brno - This year, Brno will not sell the Technology Park, which it had been considering selling since last year due to the poor economic situation caused by the coronavirus pandemic. The office complex has existed for over 20 years and rents out 60,000 m² of office space. It houses research and innovative companies. The Mayor of Brno, Markéta Vaňková (ODS), told reporters today that the economic situation is now better. The city expects tax revenues to be one billion higher than originally anticipated. The future of the park will be indicated by assessments, which Vaňková stated should be completed within weeks. Based on them, Brno will decide whether to sell the park, monetize only part of it, or just some of the buildings, or possibly keep it.

This year, Brno's budget anticipated income from the sale of the park amounting to 1.2 billion crowns. The estimate was based on the fact that last year, at the beginning of the year, the city became the owner of 100 percent of the shares when it bought 50 percent from the Dubai company P&O for 559 million.

Former Mayor of Brno, Petr Vokřál (formerly ANO), stated today at a council meeting that selling the Technology Park could be one of the biggest mistakes the city could make. "The net profit after taxation is 95 million crowns, which means that the Technology Park is capable of servicing an interest rate on a six billion crown loan. To sell something that is capable of subsidizing the city budget, I would consider not only a mistake but not a very prudent behavior," Vokřál said.

Vaňková stated that the park will not be sold this year. "In the budget, we planned an income of 1.2 billion from the sale. One of the reasons for the sale was the poor situation and the poor economic outlook for lower tax revenues. At this moment, the situation is better than we expected, therefore it is not necessary to sell the Technology Park this year," Vaňková pointed out. Brno expected tax revenues of 9.7 billion, now the forecast is 10.7 billion.

According to the mayor, the city will have assessments within a matter of weeks. "We will be able to decide whether to sell it or not, whether to sell it as a whole or a share, only properties or part of the complex. We are waiting for the materials that will enable us to make a decision," Vaňková added.

The Technology Park still has 60,000 square meters available for office construction and another 60,000 square meters is to be used for housing according to the zoning plan.