In the Český Krumlov area of the company Čevak, there could be shops and services

Český Krumlov – The Czech Krumlov Development Fund (ČKRF) wants to purchase the premises of the company Čevak on Chvalšinská Street for 13.5 million crowns. After a change in the zoning plan, a complex of shops, services, and small-scale production could be established there. Thanks to two other residential projects, the fund could end this year in profit instead of the planned loss. This information was acknowledged by the councilors today.

The company is owned by the town. The initial investment in all three projects will be 20.5 million crowns, with an expected profit of 10.6 million crowns from them. "These are development projects. They should have a positive impact on the economic results of the upcoming years in terms of reducing losses," said Miroslav Reitinger, the fund's managing director, to ČTK today. Planned revenues this year would increase by 10.2 million crowns due to the sales of apartments and land, and instead of a loss of 5.9 million crowns, the fund could end with a profit of 1.9 million crowns.

The fund wants to buy the premises of the Čevak company, thus gaining control over the area at the entrance along one of the main roads into Český Krumlov. The new zoning plan anticipates a transformation of the area, with the possibility of creating a complex of shops, services, administration, and small-scale production, which, according to the fund, would provide a more welcoming entry into the town than the current premises.

"This is another step that follows the previous business relationships between Čevak and the town. After Čevak obtained a ten-year concession to operate water management property, the area on Chvalšinská is somewhat superfluous for them. The aim is to maintain control over the entrance gate to the town. Krumlov deserves at least one beautiful entrance," said the managing director.

ČKRF also wants to sell four apartments, expecting a net profit of 7.5 million crowns. If it retains the apartments, it would need to rent them out for another 38 years to achieve the same income. The fund is also planning to exchange land to prepare for the construction of apartments in the Horní Brána area. The initial investment will be seven million crowns. "Within two years, the fund will create conditions for individual housing development in the area, six to seven lots in an attractive zone. The one-off effect on the town's treasury will be six million," said the managing director.

Opposition councilor Vojtěch Němec (Krumlováci) proposed today that the town sell some of its houses. According to him, it owns about ten percent of the roughly 300 historical houses in the center. "It could offer them for sale to its partners. The town will gain the needed cash flow and will not have to borrow from the bank," said Němec. Deputy Mayor Josef Hermann (KDU-ČSL) responded that the town hall primarily wants to own apartments in the historical core. He is pleased that no property has been sold in the center over the past 15 years. "This way, we can influence what happens in the city center. It’s not so bad that we have to sell properties," said Hermann.

Last year, the fund ended with a post-tax loss of four million crowns. The year before, it reported a profit of 11 million. The results were most affected by the coronavirus crisis and a drop in tourism revenue, which fell by 84 percent year-on-year. Revenues last year decreased by 42 percent year-on-year to just under 57 million crowns.

The ČKRF was established in 1991. The town hall contributed about 50 houses and plots in the historic center to its assets without compensation. About 13,000 people live in Krumlov.