Government acknowledges Budapest’s pre-emption rights over Rákosrendező, mayor: ‘Budapest has won’
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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.
Nobody is a winner here.
The Emirati development would have been a disaster. Budapest doesn’t need giant apartment blocks, “luxury” or otherwise. That stuff may fly in Dubai, where the name of the game is “mine is bigger,” but must not be the order of the day in Budapest.
At the same time, Fidesz is right: If this head-spinning amount of money can be found for this backwater of city to be developed into, um, “social housing” (BARF!!!), then there is no excuse for large parts of Budapest to look like a total dump.