The completion of the building next to the cultural center in Ostrava is delayed again

Ostrava - The company Smart Innovation Center (SIC), which is completing the reinforced concrete building opposite the House of Culture of the city of Ostrava, has already paid the city the first five million crowns for failing to meet the construction deadline. According to the contract, the building was supposed to be finished by the end of this September, but it is still not fully completed. However, the city councilors withdrew the item from today's meeting regarding the enforcement of contractual penalties, which currently amount to a total of 15 million crowns.

"It is clear that the construction is gradually coming to an end; on Monday, they already filed a request for approval. Nevertheless, the fact is that they did not meet the deadline they had. We have tied fairly draconian sanctions to that deadline," reminded Mayor Tomáš Macura (ANO). The first five million crowns were due in a lump sum for not meeting the deadline, and a further five million crowns for each additional month of delay. Thus, the city should already be entitled to collect 15 million crowns.

"Today we had prepared material for discussion, which was supposed to decide that the city would enforce those 15 million crowns that have so far accumulated. However, Smart Innovation Center contacted us and asked us to postpone the decision until January, claiming that they want to provide us with some fundamental facts that according to them affect the construction deadlines," stated Macura. The city leadership agreed with this procedure on the condition that the company would send at least the first five million crowns, i.e., the first penalty for failing to meet the deadline. The money was eventually credited to the city's account, and the council will return to the topic in January.

However, the mayor does not expect that the company will be released from the incurred penalties. "It does not mean at all that the city does not want to apply the additional penalties," he said. According to him, the city wanted to express goodwill and hear the arguments of the other party.

The mayor also noted that this step does not pose any risk to the city, as the penalties are secured by a bank guarantee. The maximum limit of contractual penalties was set at nearly 53 million crowns.

The building was originally supposed to be the provincial headquarters of the Communist Party, but after 1989 it remained unfinished for many years. It is located in a busy area near the cultural house and the regional office. In 2008, it was purchased by Red House Development. In the past, the city had several times requested an extension of the deadline for its completion. Eventually, both parties agreed that the cladding of the building, i.e., the facade and roof, must be completed by the end of 2016. The construction was to be fully completed by the end of 2017. The company fulfilled the first part but ultimately sought for the SIC company to take over the construction.