The construction of the hotel opposite the Pilsner Urquell brewery can begin

PLZEŇ, October 12 (ČTK) - The hotel complex project worth one billion crowns opposite the brewery in Plzeň can begin. After months of delays, the city hall and the investor, the company UBX Plzeň with Austrian capital, managed to conclude lease agreements for one hectare of municipal land. A future sale agreement will also be signed in the coming days. This is reported by Právo in the regional supplement.
The contract for future agreement was approved by the councilors at the beginning of February, but its actual conclusion was delayed due to disputes over the rental price. It was originally meant to be 250 CZK/m2, then the council reduced it at the investor's request to a fifth, that is the price for which the nearby lands are leased by the company ECM, which wants to complete the Diplomat hotel in the center of Plzeň. Ultimately, the rent returned to the original 250 CZK/m2.
"The investor will purchase the land after the buildings are approved, no later than by 2012, at a price of 1000 crowns per square meter. If he fails to do so, we can withdraw from the contract," said Deputy Mayor Vladimír Duchek.
The building in the center of Plzeň will take the form of a three-star hotel with 170 double rooms. It will be complemented by two multifunctional buildings with apartments and administrative-commercial spaces.
By the end of August 2006, the investor must obtain zoning decisions and building permits. The hotel is set to be approved by the end of 2007, with the rest of the complex by December 2011. If deadlines are not met, the city may withdraw from the contract or impose a fine, which for example, in the case of a delay in the approval date amounts to 2.5 million crowns.
The investor is currently preparing documents for the zoning process. "We would like to start discussing them with the relevant authorities before Christmas," said project manager David Lukas.