Český Krumlov settled a dispute with Čevak and will buy its premises for 13.5 million

by   CIJ News iDesk III
2024-01-26   10:02

Český Krumlov will buy the premises of the Čevak company in Chvalšinská Street for CZK 13.5 million this year, announced Deputy Mayor Zbyněk Toman (ODS). The current councillors first postponed the plan because of a controversial amendment to the concession for the operation of the city's water property by the company Čevak. However, they have already reached an agreement with the company and resolved the dispute. Chevak will move into a building at the wastewater treatment plant. A complex of shops or services could be built on the Chvalšinská site.

The current councillors have previously said that the concession agreement with Čevak is disadvantageous. They criticized that the previous coalition concluded an illegal amendment to the contract shortly after the elections last year. This is according to a legal opinion commissioned by the current town hall. However, the city has now reached an agreement with the company Čevak. Čevak will move into a building in the wastewater treatment plant, which the city will renovate for at least CZK 8.5 million. After that, the site in Chvalšinská Street will be vacant. The city will buy it. Previous councillors had counted on the city company Český Krumlovský rozvojový fond (ČKRF) buying it.

"We will repair the operational building (in the WWTP) with city money and buy the Chvalšinská site for 13.5 million. We will buy it into the city's ownership. Parts of the site could be used by developers. Buying and selling the land of the complex through the city is easier in terms of taxes, no tax on profits is paid," said Toman. He added that the city has agreed on the wording of the agreement with the Čevak company.

Former deputy mayor Josef Hermann (KDU-ČSL) criticised today that ČKRF is not planning any development projects. One of the fund's managing directors and coalition councillor Jan Sommer (ČK by reason and heart-Independents) confirmed that the fund had limited such plans. He described the fund's assets as neglected. "It is obvious that the houses (managed by the fund) should have been repaired long ago," Sommer said. But his criticism was rejected by the fund's former managing director Miroslav Reitinger. Under his leadership, he said, the fund invested in "highly profitable" projects. Under Reitinger's leadership, the fund upgraded the bus station and also set up paid tour bus stops, known as bus tracks.

The CKRF was established in 1991. City Hall contributed about 50 houses and lots in the historic downtown area to its property at no cost. The fund also operates parking lots in the city, including those for tour buses, and the synagogue also falls under its umbrella. The fund's revenue from the sale of goods and services in 2022 was 74.8 million, with an after-tax profit of 12 million. This is according to the financial statements.

Český Krumlov, which is home to about 13,000 people, has a deficit budget this year with revenues of 554.2 million and expenses of 598.4 million. The deficit will be covered from money saved earlier. With revenues of around CZK 2.8 billion, Čevak supplies drinking water and provides wastewater disposal for more than half a million inhabitants of the South Bohemian Region and parts of the Pilsen Region and Vysočina.

Source: CTK
Photo: Český Krumlov - npu.cz