The company wants 1.6 billion from Ostrava for a thwarted investment

Ostrava - The company Amádeus Real, which was supposed to build a shopping center in Ostrava, is demanding 1.6 billion crowns from the city for a thwarted investment. The city councilors of Ostrava decided today that they will not pay. The dispute is thus heading to court. The city representatives also approved in the resolution that the matter should be further addressed by the Moravská Ostrava and Přívoz district.
     The company Amádeus Real withdrew from the purchase agreement for the land at Dr. Edvard Beneš Square in the city center in March. There was supposed to be a planned shopping complex. The developer withdrew from the contract after the central city district did not grant permission for the construction. The district ultimately granted consent retroactively. The city then formally disputed the withdrawal from the contract.
     "According to Amádeus Real's claims, the city violated the conditions by the way the Moravská Ostrava and Přívoz district acted. We tried to prevent this. We knew that this situation could arise and we warned the city district about it," said Ostrava Mayor Petr Kajnar.
     The company Amádeus Real stated in a letter to the city hall that it wants 1.58 billion crowns from the city. Of this, 1.3 billion is the amount that, according to the company, was assessed by an expert institute as lost profit of the company.
     The decision of the city councilors today that the legal dispute should be resolved by the district surprised Jiří Havlíček, the Mayor of Moravská Ostrava and Přívoz, because he reportedly did not have the material available before the meeting. "We insist that we acted correctly and with the best knowledge and conscience," Havlíček said. According to him, the contractual partner of Amádeus Real is the city, not the district. The district, according to the mayor, must address the matter in cooperation with the city.
     The developer planned the construction of a shopping center and its connection with historical buildings, in which the Fashion House Ostravica-Textilia was previously located and which have been deteriorating for years. After withdrawing from the purchase agreement, Amádeus Real offered the city the trio of historical houses, two of which are protected monuments, for purchase. The city refused, stating that the acquisition price was lower than what the company wanted. The company informed the city in a letter that it would sell the buildings of the former Fashion House Ostravica-Textilia at auction.