Znojmo wants to reclaim the former slaughterhouse building as its property

Znojmo – The building of the former slaughterhouse in Znojmo is set to return to the ownership of the city. According to the city council members, the company K-Produkt Holding, which purchased the property in 2014 for 3.1 million crowns, did not fulfill its obligations, which included the construction of a manufacturing and storage hall. The representatives decided that the city would withdraw from the contract, said Karolína Janečková, spokesperson for the Znojmo city hall, in a press release today. The company's management disagrees with the withdrawal, said owner Jiří Kún to ČTK.

Part of the purchase agreement included the buyer's obligation to start the construction of the manufacturing complex in 2016, complete the construction by 2019, and ensure several dozen new jobs. Over the years, two amendments to the purchase agreement were made, which extended the deadlines. "Since 2015, the buyer has gradually encumbered the land with a lien, and withdrawing from the contract at this time would pose a risk for us that we would be paying back tens of millions of other people's debts. The land is no longer encumbered with debts now," said Znojmo Mayor Jakub Malačka (ČSSD).

According to him, work is still ongoing for demolition on the site, and the owner has again requested an extension of the deadline. "We realize that this is an extreme step. However, the investor had enough time and understanding from the city, but we must also protect the sold property of the city as responsible stewards," Malačka added.

According to Kún, there is no legal reason on the city's part for withdrawing from the contract. "Anyone can see for themselves that the construction began a long time ago, starting with the demolition of the old slaughterhouse buildings and terrain modifications. This year we would have completed the construction. The reason for withdrawal is illegal. Therefore, we argue the invalidity of the withdrawal from the contract and will defend ourselves by all legal means in this matter," Kún told ČTK.

The city plans to return the paid purchase price of the property to the purchasing company and report everything to the land registry so that the property can be transferred back into its ownership. Further legal actions are likely to follow.