The councilors of Ostrava do not want to extend the deadline for the completion of the "skeleton"

Ostrava - Ostrava's city councilors do not want to comply with the request from Red House Development to extend the deadline for the completion of the so-called skeleton opposite the Ostrava House of Culture. The skeleton has been decaying in the regional city for about 25 years. According to Mayor Tomáš Macura (ANO), the company that bought the reinforced concrete structure in 2008 has applied for an extension for the third time. However, the councilors are refusing to comply this time, and the final decision will be made by the councilors next week. The company does not wish to comment further on the city’s decision.
    "The skeleton is one of the sores on the map of this city, and we have a sincere interest in erasing it. The reality is that the owner of the building, Red House Development, has a contract with the city, under which they are required to build a functional building from the skeleton by August 31, 2015," said Macura.
    He stated that the condition of the building is such that this deadline is completely unrealistic. The mayor mentioned that the city has been in talks with representatives of the company several times since the beginning of the year. "We received an official request for another extension. This request is officially for another five years, until 2020. We clearly communicated to the owner of the building that this option is unacceptable to us," said Macura.
    He added that during mutual negotiations, the company attempted to convince city representatives that it was interested in utilizing the building. Initially, according to the mayor, they discussed three possible options. "Now, there is talk of one option for a multifunctional building," said Macura, adding that the company also offered to shorten the extended deadline for construction to two or three years. "We do not want to give another, let's say, blank check, and we have decided not to comply with the owner's request for another extension," emphasized Macura.
    In the event that the councilors support the city's position and the deadline is not extended, the city has a chance to reclaim the property. "The legal situation for the city is relatively strong in this case, as there is a purchase contract plus a preemptive right agreement. The legal documentation also includes an arrangement for a contractual penalty, which is actually equivalent to the purchase price. In other words, this means that if the building is not constructed, the city has the right to withdraw from this contract and demand a contractual penalty equivalent to the purchase price, and the city would regain ownership of the property without incurring any costs,” said Macura. However, he did not rule out the risk that the entire dispute could end up in court.
    "I do not know the exact wording of the resolution as it was adopted by the council. Once we familiarize ourselves with it, we will issue an official press statement, as the situation is certainly serious," stated Sylvie Pyszková, managing director of Red House Development.
    The company acquired the skeleton for approximately 53 million crowns, and according to the mayor, about 20 million crowns of this amount was spent on project documentation for the reconstruction, with the remainder used for the skeleton and the land.
    The unfinished skeleton was originally meant to be the regional headquarters of the Communist Party. After 1989, it remained on the busy 28th October Street as a remnant of the past regime. In 2006, plans for its completion as an Administrative Activities Center also failed, as they were financially unfeasible.