Developer will sue Ostrava for hundreds of millions

Ostrava - The city of Ostrava is still struggling to resolve a dispute with the company Amádeus Real concerning the construction of a shopping center. Despite personal negotiations between representatives of both parties, it seems that everything will ultimately have to be resolved in court. The developer is also likely to claim damages amounting to hundreds of millions of crowns. This was stated today by the mayor's assistant Tomáš Petřík (ODS), who noted that the company blames the central city district of Moravská Ostrava and Přívoz for the collapse of the entire project. Its mayor, Jiří Havlíček (ČSSD), denies any wrongdoing.
      According to Petřík, both parties met for negotiations on Tuesday. "Their part of the delegation was supplemented by renowned lawyers, who essentially did not provide the last figure, but quantified the damages incurred by the company. I believe that we are likely facing a very long, very complicated, and protracted dispute. Today I would speak about the fact that we will be in a legal dispute regarding an amount in the hundreds of millions of crowns," Petřík noted.
      According to him, mutual negotiations remain a priority for the city, even though he is convinced that the company will file a lawsuit against the city. "That does not close the door for potential negotiations," Petřík believes, and he did not rule out that a similar dispute could affect the city's credit rating. "I am convinced that all financial institutions will notice this fact, as it represents a potential loss, or rather an expense for Ostrava," Petřík said.
      The company Amádeus Real withdrew from the purchase agreement for the land on Dr. Edvard Beneš Square in the city center in March, where the shopping complex was supposed to be built. This came after the city district of Moravská Ostrava and Přívoz refused to grant consent for the construction. The district later issued the consent, and the city formally challenged the withdrawal from the contract. However, according to Petřík, Amádeus Real is convinced that the blame for the project's failure lies with the central district.
      "I firmly believe that we stand to win, however, if not, then someone will be responsible for that damage," said Mayor Petr Kajnar (ČSSD) during the council meeting. However, the mayor of the central city district, Havlíček, insists that the district did not err. "I completely reject these considerations (of district wrongdoing). Companies that proceed this way in other cities always have the same script. I buy a property, let it deteriorate, and instead of building, I then blame anyone for thwarting it," noted Havlíček, who claims that the district acted according to its best knowledge and conscience.
      Amádeus Real is not commenting much on the entire dispute. Its spokesperson Jan Piskáček told ČTK today that he would not comment on it even at this stage. He also did not want to state whether the company has prepared or possibly filed a lawsuit against the city.