Government acknowledges Budapest’s pre-emption rights over Rákosrendező, mayor: ‘Budapest has won’
The government acknowledges the pre-emption rights of Budapest Közművek Nonprofit (BKM) over the brownfield area in Rákosrendező, the minister leading the Prime Minister’s Office told a regular press conference, adding that the relevant government decree will be issued later on Thursday.
Government acknowledges Budapest’s pre-emption rights over Rákosrendező
BKM, a company owned by the Budapest municipality, has exercised its pre-emption rights over the brownfield area in Budapest’s 14th district, Gergely Gulyás said. The government had “studied” the declaration to clarify the links between the civil rights agreement and the international agreement in the works over the same area, he said.
BKM declared to take on all duties that would have fallen on the investor-developer from the United Arab Emirates, Gulyás said. “In view of that, the government acknowledges the pre-emption rights.”
City Hall, and BKM, will be mandated to pay the price for the area under the terms and conditions of the agreement. It will also be liable for clearing the area to the value of half the price, HUF 25 billion (EUR 61.5 million), he added.
Karácsony: ‘Budapest has won, city’s interests overrode real estate racket’
“The government has finally backed down, on Thursday they acknowledged what they should have done years ago: Budapest’s interests have prevailed instead of ‘mini-Dubai’,” Budapest mayor Gergely Karácsony said on Thursday, responding to an announcement made by the head of the prime Minister’s Office at a regular press briefing.
The mayor said “we will exercise our pre-emption rights, Budapest will take on all duties that the Arab billionaire undertook in the sale and purchase agreement.” “Meanwhile, we will increase the city’s wealth and revenues, and we will build in Rákosrendező what serves the city’s future, all in an open, transparent manner, with the involvement of the residents of Budapest,” he added.
The head of ruling Fidesz-KDNP’s Budapest chapter said on Facebook in response to the announcement by Gulyás that “the fate of Rákosrendező is sealed. If 50 billion [forints] can be paid for a landfill, then there should be money for other things as well, clearing up the rubbish, developments, serving the interests of the people of Budapest, such as repaving roads, developing fixed-track transport, building P+R parking, or managing the housing crisis”.
Alexandra Szentkirályi said Budapest had suffered a huge loss, and the damage was caused by the city’s elected leaders who said no to a HUF 5,000 billion investment, thousands of jobs and billions of revenue for the city.
“Karácsony and his allies decided, from now on it is their responsibility what will happen to Rákosrendező. We know what will happen: nothing. Like the City Hall park, which was never completed… Budapest develops only when the government develops it,” she said. “Now is the time for Karácsony to prove that they have a plan and they put it into practice. But everyone knows what to expect… Budapest’s leaders are buying the past for 50 billion when they should only have supported the future,” Szentkirályi said.
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