Plzeň will decide within six weeks whether to purchase the massive barracks

Source
Václav Prokš
Publisher
ČTK
29.07.2006 00:05
Czech Republic

Pilsen

Plzeň - The city of Plzeň will evaluate by the beginning of September whether to buy the 33-hectare area of former barracks in Plzeň in Slovany, which has been deteriorating for years, from the army. The head of the real estate section of the Ministry of Defense sent a letter to the city hall, in which he requests Plzeň's position regarding the acquisition of properties with all liabilities. City lawyers have now begun to examine what burdens this would bring. Mayor Miroslav Kalous said this to reporters today.

    The biggest problem is the disputes with 1. Plzeňská Makléřská, which have lasted for over six years and demand the conclusion of a purchase contract for the area or compensation of 50 million crowns, which they allegedly invested in projects, surveys, and demolitions. Before the summer holidays, the ministry wanted to reach an out-of-court settlement with 1. Plzeňská Makléřská and pay the amount. However, the Ministry of Finance did not approve it.
    According to Kalous, the city would have to take over the court disputes with 1. Makléřská. The city hall is currently determining what stage they are in. They also need to assess the ecological obligations and other legal burdens that could arise from the lawsuit.
    City lawyer Milan Duda said that Plzeň would probably not take over the lawsuit with 1. Makléřská. It would remain with the state. However, the city hall would likely have to compensate the ministry for the financial settlement with 1. Makléřská. The city leadership agrees that 50 million crowns for the barracks would be worth it. According to Kalous, it is a significant development area that private entities such as developers, builders, and entrepreneurs want to enter. The city aims to have 1,000 apartments, a large park, a new regional archive, shops, and light manufacturing there.
    The purchase of the barracks and the takeover of the resulting obligations will be approved by the city council once again on September 7. The letter from the Ministry of Defense is not a direct offer but a call to respond to the question of whether the city wants the barracks.
    For many years, Plzeň has been striving for a gratuitous transfer of the barracks or for a purchase at a price of up to 20 million crowns. The facility will require significant investments in demolition, damaged infrastructure, decontamination, and the disposal of hazardous areas. According to an estimate from six years ago, it would exceed 400 million crowns.
    In 1999, the ministry announced a selection procedure for the sale of the area, and two years later it withdrew from the contract with the buyer. The company 1. Makléřská never paid the agreed purchase price of 120 million crowns to the state.
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