Developer demands millions from Jablonec for thwarted project

Jablonec nad Nisou - The company Ekky development, which was preparing the construction of apartments in the Jablonec district of Dolina, is seeking 180 million crowns from the city as compensation for the thwarted project. The planned construction of houses with 230 apartments, row houses, and garages faced significant protests, leading the developer to halt the project. They invested 25 million crowns into the project and are also demanding lost profits from the city, threatening legal action. Mayor Petr Tulpa is convinced that the city acted correctly and is not afraid of a lawsuit. This is reported by today's Mladá fronta Dnes (MfD) and Jablonecký deník.
    The developer withdrew from the half-billion crown project on April 1. According to city hall spokesperson Jana Fričová, the company cited changing circumstances in contract closure and project implementation as reasons. However, according to her, the main reason is the current financial and economic crisis and the situation in the real estate market. According to Ekky, the main culprit for the project's failure is the city, which faltered in the tender conditions.
    "Right from the start, they announced a tender for halting the location, yet they did not find out what the residents actually wanted there. They chose our project of apartment and row houses. However, we encountered resistance from the local residents," said Pavel Řežábek from Ekky development to the newspaper. People particularly oppose the apartment buildings, which disrupt the existing family housing development. The developer therefore submitted a new project with family houses, but was unsuccessful with the city, as they requested participation in investments in infrastructure from Jablonec.
    According to the mayor, the selected project was in accordance with the zoning plan, and it was up to the developer to modify it according to the feedback from local residents. He does not want to hear about compensation for lost profits. Therefore, Ekky is preparing a lawsuit. "We are concerned about what we have already invested in the project, which is nearly 25 million, and then about the lost profits; we estimated that we would earn 140 to 150 million crowns in Dolina," added Řežábek.