Praha 7 has decided that it will not be buying the former headquarters of Economie for now

Source
Aleš Berný
Publisher
ČTK
16.10.2013 22:10
Czech Republic

Prague

Prague - Today, the representatives of Prague 7 decided that the city district will not yet pursue the purchase of the former seat of the Economia publishing house in Letná. The city hall will wait for the government's decision, which is also interested in the building valued at nearly 300 million crowns - until then, the city hall will take no action. The government today interrupted the discussions regarding the purchase of the building, requesting additional information. Originally, the city district offered 275 million for the building. The Prague 7 city hall must vacate the building on Captain Jaroš Embankment in 2015, as it belongs to the Ministry of Finance.
    "The government is in session today and the purchase item is still on the agenda, which is why I convened the council meeting," said Prague 7 Mayor Marek Ječmének this morning. The owner of the building, Alkatria, confirmed that negotiations with the government regarding the purchase are ongoing.
    At the same time, the representatives decided to authorize Mayor Ječmének to negotiate with the Ministry of Finance about whether the city hall could remain in the building on the embankment. The representatives also agreed that if the government purchases the Economia building, the city hall will reclaim approximately 2.2 million crowns invested in the valuation report for the building from Alkatria.
    Acting Prime Minister Jiří Rusnok told reporters today that the government had interrupted the discussions regarding the purchase of the building. "We will return to the material, it will be supplemented with additional information," Rusnok said without further elaboration.
    The Ministry of Labor and Social Affairs wants to purchase the former seat of Economia for the management of the employment office; according to materials for the government meeting, it plans to buy the building for 299 million crowns. It wants to relocate the management of the office, two contact points, a call center, and a training center there.
    Alkatria purchased the building from Economia in May for approximately 140 million crowns, based on available information.
    According to opposition representatives, purchasing the Economia building through a joint-stock company with unknown owners would be very suspicious. "It has become evident that we should never buy anything through a joint-stock company," said opposition representative Ondřej Mirovský (SZ). He claimed that the deal was uncertain, as the city hall did not have exclusivity for the purchase with the seller.
    Opposition representative Silvie Kratochvílová then criticized the city hall's approach, pointing out that Prague 7 commissioned a valuation report for the building's price without any certainty that it would be sold to the city hall. "Moreover, in my opinion, the valuation is overpriced," she said. The lack of purchase exclusivity was also noted by TOP 09 representative Jan Ladin, who stated that the government sought exclusivity, unlike the city hall.
    Mirovský also mentioned that the simplest solution would be for the city hall to continue negotiating for the purchase of the current building where the office is located. This was supported by opposition representative Milada Moučková (KSČM). "This would save us money, just for relocating or networking. There will be elections, and there will be a new government, and it will be possible to negotiate," she said.
    This was rejected by Mayor Marek Ječmének. "This is normal populism; you know that the Ministry of Finance plans to use the building in the future for the establishment of a unified contact point. That answer has always been here," said Ječmének. Moreover, according to him, the government is still looking for administrative buildings; the project for the contact point has not been canceled by the ministry.
    The city district's lease in the building on Captain Jaroš Embankment ends in 2015. Until then, it wants to relocate. However, there have been tumultuous discussions surrounding the choice of headquarters for several months. The original plans considered an investment of about a billion. Local residents and the opposition opposed the plan. They eventually expressed their will in a referendum, which was announced by the Supreme Administrative Court (NSS) despite the objections from coalition representatives from ODS and ČSSD.
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