Prostějov is threatened with a lawsuit over the shopping center for up to half a billion

Prostějov - The company Manthellan has threatened the Prostějov city hall with a lawsuit for damages of up to half a billion crowns due to problems with the planned construction of the new shopping center Galerie Prostějov. Manthellan's lawyers claim that the city is violating the contract for the preparation of this project and that the recent approval of a new zoning plan has made the construction of the shopping center impossible. This is stated in documents available to ČTK.
    "If the defendant (Prostějov) does not cease to violate its contractual obligations and does not start to properly fulfill the contract, the project will be completely thwarted. The plaintiffs would thus incur damages totaling over 500 million CZK, representing actual damages and lost profits," reads the lawsuit from Manthellan. The company's management has estimated the current damages at three million crowns. The city hall has been sued for the first 488,782 CZK, and the company wishes to continue negotiations regarding the construction of Galerie Prostějov. "However, the plaintiff does not in any case waive its further claims and reserves the right to claim not only the remaining part of the already incurred damages but also all other damages including lost profits," warned Manthellan's lawyers.
    Manthellan claims that in the contract from 2010, the city hall committed to cooperate on the preparation and implementation of the shopping and community center Galerie Prostějov, but has long since failed to meet its obligations. Manthellan's lawyers argue based on the zoning plan approved in the summer. "The defendant grossly violated the contract by initiating the preparation and approval of a zoning plan that completely prevents the realization of the project," they stated.
    The company's management also criticized the city hall for delays in preparing the regulatory plan for the city center, which includes the planned construction of Galerie Prostějov. Due to potential bias among Prostějov officials, the regulatory plan was to be prepared by the city hall in Olomouc. The regional office decided on this last spring, but the proceedings on the regulatory plan were interrupted. The project thus experienced several months of delays.
    "I can confirm that Manthellan has filed a lawsuit against the city of Prostějov due to a breach of the future contract concluded in July 2010. Regardless of the above, however, Manthellan is fully committed to realizing the regeneration project of the center of Prostějov and the construction of Galerie Prostějov in the proposed form, and continues to work on the preparatory tasks," said project spokesman Juraj Aláč to ČTK today.
    The new zoning plan for Prostějov was approved by the city council in June. The council will discuss a change that would allow preparations for the construction of Galerie Prostějov to continue at the end of September. "At the moment the council approves the change to the zoning plan, we will negotiate with Manthellan again," said Mayor Miroslav Pišťák (ČSSD) to reporters last week.
    Galerie Prostějov is to be built in the center of Prostějov where the cultural house currently stands. The shopping center is designed as four stories, with two floors to be underground. The project was prepared by a group of investors, including businessman Richard Morávek, who built the Šantovka shopping center in Olomouc. Some residents of Prostějov oppose the construction of Galerie Prostějov.