Developer Amádeus will continue the lawsuit with Plzeň regarding damages

Plzeň - The Prague-based development company Amádeus, which is demanding 1.85 billion crowns from the city of Plzeň as compensation for the unrealized shopping center project, will continue to sue the city. The Plzeň court rejected its claims for compensation in early May, but the developer has appealed against the ruling. This was confirmed to ČTK by Plzeň Mayor Martin Zrzavecký (ČSSD) and Karel Samec, the media representative of Amádeus, who wanted to build a giant structure for 2.5 billion crowns on the site of the demolished cultural house in the center of Plzeň from 2008 to 2014.

Three and a half years ago, Plzeň residents rejected the multifunctional complex Corso Americká for 2.5 billion crowns in a referendum. The results of the referendum bound the city to take all steps against the construction. The developer filed a lawsuit against the city last January. He demanded compensation for the frustrated project and lost profits. The court began last September. Plzeň has always asserted, and still maintains, that the city has not done anything to harm the developer.

"Yes, Amádeus Real has appealed against the first-instance court's decision. However, their primary interest is to build in Plzeň, not to sue," Samec stated. The mayor expected Amádeus to appeal, but he is convinced that the regional court will not recognize the developer's claims.

According to the mayor, Amádeus has approached the city that they would like to lease some city lands. "It is up for discussion. In any case, the legal analysis conducted by the law firm Kocián, Šolc, Balaštík clearly indicated that if they (Amádeus) request a second traffic connection to that area, given that there is currently only a connection between the polyclinic and the baths, it is such a large area that they would recommend we lease it to them," he noted. According to the mayor, it is a question of what the company wants the lands for.

Samec confirmed that Amádeus requested the lease of lands, but only based on the request of the city departments in the ongoing zoning proceedings. "The planned building is to be located exclusively on lands owned by Amádeus. However, the implementation of the construction would affect some land owned by the city, for example, for the placement of construction site fencing or the construction of an access road to the building," he explained. The requirement that the investor must conclude lease agreements for the mentioned city lands originated from the city's development department. Therefore, Amádeus requested a lease of the lands for two years on March 4, so far without a response.

The mayor stated today that the city's management has already negotiated with the third interested party regarding the purchase of this area. Most recently, it was a large Slovak company, specifically an investment fund based in Johannesburg that has already built several similar shopping centers in Slovakia.

The buyers are interested not only in Amádeus's 2.4-hectare plot but also in areas owned by the neighboring Tesco. "So it may happen that a developer will be found who will consolidate the area and will want to develop and build it all," the mayor stated. Several investors have already confirmed their attempt to buy the vacant land, which is still unused, and negotiations with Amádeus, according to him. No results have been achieved, he said.

According to Zrzavecký, an official process is currently underway, during which Tesco is offering a small shopping house (formerly Prior) along with many plots. "Allegedly, individual companies are competing for this. And they are also interested in Amádeus's spaces. If that happens, we are ready to negotiate with anyone who wants to develop that area, but we have conditions," he added. These are regulatory conditions and the new zoning plan under preparation, which includes two architectural studies that indicate how the area should be built.