The former Ostrava hotel Palace could be transformed into dormitories

photo: Ostravablog.cz

Ostrava - The dilapidated Palace Hotel in the center of Ostrava could be transformed into modern university dormitories. For over two years, the company Seven Trees has been striving for its conversion into a campus for approximately 350 students and is now trying to secure European funding for the project. This was stated today by company representative Petr Skrla.
    The company has prepared a renovation project costing approximately 250 million crowns. However, it turned out that it would be difficult to finance, and therefore the previous plan has been reduced. The renovation is now expected to cost around 160 million crowns.
    The company has already announced a public tender for construction work contractors and will now have to wait to see if the project will be supported by the Regional Council of Moravian-Silesian Region, which is responsible for distributing European funds in the region. The yet-to-be-approved European funding and possible complications in selecting a contractor could jeopardize the project. Nevertheless, Skrla believes that it will be successfully implemented. "I think by the end of May we could know who the winner of the tender is. I can’t do anything but hope that it works out. We're doing everything for it, but I can't say I'm calm," said Skrla. According to him, it is necessary for the company to sign a funding agreement for European money by the end of June at the latest, in order to qualify for a sixty percent subsidy.
    "The campus project has been presented to us, the standard evaluation period is three months," said regional council spokesperson Michal Sobek today to ČTK.
    If the project avoids possible complications, construction could begin as early as June. The company expects completion in May of next year and from the academic year 2015/2016, Palace Campus could start operations.
    "We want to transform the set of buildings into a student campus that would offer not only accommodation but also other services, such as workshops, study rooms, or a tea house and café," said Skrla. According to him, prices for accommodation could range from 2500 to 4000 crowns per month. Part of the space would also be used for commercial purposes. The company has already conducted a survey among students and claims that it would not have a problem filling the dormitory capacity.
    Skrla stated that the costs of the renovation would be covered not only by potential European subsidies but also from the company’s own resources and with the help of a loan. The project’s return on investment is expected in 15 to 20 years.