Dispute ]over Žofín Palace lease sparks legal battle between Prague 1 and NKL Agency

by   CIJ News iDesk III
2025-01-16   05:50
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The long-standing lease of the Žofín Palace in Prague has escalated into a legal standoff, with the current tenant, NKL Agency, refusing to vacate the premises and hand it over to Prague 1, as originally agreed. NKL Agency, which had leased the historic venue until the end of last year, declined to transfer control to the district authorities, citing a disputed lease agreement.

Representatives from the Prague 1 municipal office, along with officials from Zátiší Catering Group—the designated new tenant—arrived at the palace at 10:00 AM to facilitate the handover. However, the NKL Agency maintained its position, claiming that the lease agreement includes an option for a ten-year extension. According to NKL’s legal representative, Lucie Kolářová, this clause allows the company to retain tenancy until a court rules otherwise. Prague 1 disputes this interpretation, stating the lease did not automatically renew and that the legal grounds for occupancy have expired.

“The handover of Žofín Palace did not take place yesterday because the agency refused to vacate the premises. They continue to use the property without a valid legal basis,” stated Karolína Šnejdarová, spokesperson for Prague 1. She emphasized that the municipality does not recognize the validity of NKL’s claim.

NKL Agency asserts that the lease’s extension clause entitles them to continue operating the palace. “Our legal position is that we are legitimate tenants and users of the premises. The final decision on this matter rests with the court,” Kolářová said. A court hearing is scheduled for January 30, which may provide clarity on the lease’s validity.

Adding to the complexity, NKL Agency claims Prague 1 is obligated to purchase furniture and equipment installed by the company during its tenancy. The agency insists that until this financial obligation is met, the property cannot be vacated or handed over.

Žofín Palace’s leasing arrangements have been a contentious issue for years. Previous lease extensions, notably in 2010 and during 2018, were criticized for their timing ahead of municipal elections and perceived lack of transparency.

Prague 1 now faces the challenge of deciding its next steps while awaiting the court’s ruling, which will ultimately determine whether NKL Agency can continue its tenancy or if the palace will transition to the new lessee, Zátiší Catering Group. The dispute underscores the complexities and sensitivities surrounding the management of Prague’s historic landmarks.

Source: CTK
Photo: NKL Agency

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