Ostrava city councilors did not extend the deadline for the completion of the "skeleton"

Ostrava - The city councilors of Ostrava decided today to reject the request from Red House Development for an extension of the deadline for the completion of the so-called skeleton opposite the House of Culture of the City of Ostrava. The company initially requested a five-year extension. However, it ultimately presented a variant to the council indicating the completion of the building by 2017 and promised additional guarantees.
    Although the councilors refused to extend the deadline, according to Mayor Tomáš Macura (ANO), this does not mean that discussions regarding the future of the skeleton cannot continue, because today's council did not decide on any termination of the contract with the company. Thus, according to him, this is not a fatal and irreversible decision. "Today's decision that the city will not extend the deadline for the completion of the building does not imply any legal conflict. Further legal steps would presumably occur only when the city decides to terminate that contract," Macura stated, who believes there is still room for further negotiations.
    Company representative Michal Štefl is convinced that the company will ultimately be able to reach an agreement with the city. The skeleton has been deteriorating in the regional capital for about 25 years. The company purchased the reinforced concrete structure in 2008 and according to Štefl initially worked on a variant that would establish an Administrative Activities Center in the building, and subsequently discussed the possibility of housing a scientific library there. However, none of these projects ultimately materialized. "I believe that the leadership in Ostrava is a group of reasonable people who will want to come to an agreement in the end because the skeleton is not very beautiful. I believe a reasonable agreement will be reached," stated Štefl. He claims that the company has no interest in delaying the completion. Other representatives of the company, however, also admitted that today's decision of the council may complicate the company's position in negotiations with banks or other partners.
    The company previously purchased the skeleton for approximately 53 million crowns, of which about 20 million crowns, according to the mayor, was paid for project documentation for the reconstruction, with the remainder for the skeleton and the land. In the current project, it promises to transform the skeleton into a multifunctional building that could be used for both administration and housing. It promises that by the end of 2016, the skeleton will have the cladding and roof finished, and the entire project will be completed by the end of 2017. The mayor has previously stated that if both parties do not reach an agreement and the city terminates the contract with the company, it has a right of first refusal to the property, and part of the legal documentation includes an agreement on a contractual penalty, which is practically the amount of the purchase price. However, if the situation were to escalate that far, it is evident that the entire dispute would end up in court, which company representatives hinted at today; the company also owns land around the building.
    The unfinished skeleton was originally intended to be the regional seat of the Communist Party. After 1989, it remained in the busy street of October 28 as a relic of the past regime.