The Palmovka Center filed a lawsuit to determine the owner of the new town hall

Prague - The company Centrum Palmovka (CP), owned by Prague 8, has filed a lawsuit to determine the owner of the unfinished building of the new town hall. Doubts about ownership arose from an analysis of contracts that the company commissioned. The court will reportedly decide whether CP or the capital city is the owner. This was stated today by CP spokesman František Králík. Due to this doubt, according to him, CP stopped paying the contractor, the construction company Metrostav, in the spring. The new town hall at Palmovka is expected to cost 1.1 billion.
    According to Králík, the company now does not know whether it is the owner of the unfinished building or not. "Given the complicated legal relationships, it could be the capital city. Our doubt arises from the analysis of all contracts that the company's management had prepared. This doubt is also the reason for withholding the payment to Metrostav," said the spokesman.
    How CP will proceed further and what will happen with the unfinished building will only become clear after the court's decision. "It is impossible to estimate when that will happen," said Králík. The company will discuss the situation with its shareholder, namely the municipal district Prague 8 and its management.
    Metrostav is demanding about 240 million crowns from the company, and it wants to resolve the payment at an arbitration court. In May, Metrostav suspended construction and limited it only to the most necessary work.
    Prague 8 approved the construction of the center for more than 1.1 billion crowns back in 2010. It has so far paid the construction company about half of the amount. The actual construction began last April. The building is expected to cover an area of more than 16,000 square meters.