Dvůr Králové did not receive a subsidy for the reconstruction of the factory for 800 million, they are considering the next steps.

Dvůr Králové nad Labem – The fifteen-thousand-strong town of Dvůr Králové nad Labem did not receive a subsidy of nearly 400 million crowns for the reconstruction of the former Mayer factory into a cultural and entertainment center. The city is now trying to figure out how to proceed with the project, estimated at around 800 million crowns excluding VAT. The reconstruction of the factory could take place in stages, with the town continuing to seek co-funding sources. This was stated today by the town hall spokesperson Miroslava Kameníková.

In April, the city applied for a subsidy of 371 million crowns from the National Recovery Plan under the Brownfields program. However, the State Investment Support Fund rejected the city’s application for failure to meet the conditions. The issue was that the new construction exceeded the footprint of the original building by more than the permitted five percent of the area. The city officially learned of the decision at the end of September.

Mayor Jan Jarolím described the rejection of the subsidy application as an unpleasant surprise. "We were repeatedly assured that we meet this condition of the subsidy title, including in writing. Although the subsidy is not legally binding, we are currently addressing how we will respond to the announcement,” said the mayor. In the spring of this year, he stated that without the subsidy, the city would not be able to finance the reconstruction.

The subsidy from the National Recovery Plan was intended to cover a significant portion of the costs for demolition and the construction of the new southern part of the complex. The new building is expected to include a cultural center with a multifunctional hall and one smaller hall, and there are plans to build underground garages for nearly 70 cars. The second part of the project will be the construction of an educational center, a children's recreational center, and a museum depositary in the reconstructed northern part of the complex.

The city intends to remodel the factory according to the design by the architecture studio Grimm Architekti, which won the architectural competition. The design work is expected to cost the city 31 million crowns. The town hall has building permits for the construction. In September, the councilors intended to announce a tender for a construction company, but did not do so due to the rejection of the subsidy.

According to the spokesperson, the city is seeking subsidies from other sources. They have applied for a subsidy of over 100 million crowns for the removal of ecological burdens in the factory. They are also requesting an individual subsidy of 150 million crowns from the budget of the Hradec Králové Region.

The area of the former Mayer factory in Republic Square in the city center covers 5,500 square meters and consists of several buildings. The town hall purchased the factory in 2017 for 9.4 million crowns from the local cooperative Vánoční ozdoby. Originally, it was a textile factory; later, there was a marketplace in the complex, and the company Strojtex was also located there. The factory buildings are located in the city’s heritage zone.