Zlín will sell land in the city center to the ECM group for 80 million

Source
Jaroslav Janečka
Publisher
ČTK
18.09.2006 20:25
Czech Republic

Zlín

Zlín - Zlín will sell lucrative plots in the city center to the developer group ECM, which will construct a community and commercial center there. The company will pay 80 million crowns for approximately 16,000 square meters in two installments. Today, the representatives decided on this at their extraordinary meeting. The ECM group also commits to potentially operating the congress center that the city wants to build.

    The city hall has wanted to sell the vacant plots near the sports hall on Březnická Street for a long time. "As the land looks now, it's somewhat of a disgrace," noted Deputy Mayor Martin Janečka (ČSSD) at today’s meeting. The ECM group is expected to construct a building with four above-ground and three underground floors. The complex will offer about 35,000 square meters of retail space, along with approximately 500 to 600 parking spaces.
    Part of the document approved today by the representatives includes a proposal for a lease agreement for the operation of the congress center. According to it, the ECM group should pay the city one crown for the first three years, 200,000 crowns for the next three years, and then 400,000 crowns for the following four years. The Bohuslav Martinů Philharmonic will also have its headquarters in the building. However, the operator is demanding seven million crowns per year for it. Some opposition representatives criticized the lease agreement for this reason.
    However, the document approved today does not mean that ECM will automatically operate the congress center. According to the proponent of the proposal, Councillor Karel Dvorský (ČSSD), the city must announce a concession procedure. A better offer could emerge from this. "The final contract will then be approved again by the council," he stated. However, if no better offer comes in and ECM refuses to take over the operation, it will not obtain the plots on Březnická Street.
    According to Janečka and Deputy Mayor Irena Ondrová (ODS), acquiring an operator is a necessity. Operating costs will amount to as much as 15 million crowns. The city does not have certainty that it will manage to secure enough events for the operation to be profitable. They stated that the city will not lose anything by paying for the placement of the philharmonic, as it is already contributing to its operating costs, such as energy.
    The congress center will create a new complex in the city center together with the university center. The university section will include a library, an auditorium, and lecture halls. The area designated for congress purposes will feature a hall, where the Bohuslav Martinů Philharmonic will also reside. The university has already begun construction of its section for 453 million crowns. The city is already building the underground part, which includes, for example, underground garages. The actual congress center will start construction later.
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