Zlínský kraj, a region in the Czech Republic, has reached an agreement with Unimex Group in a dispute over land in Zlíně-Malenovicích. The region will remain the owner of the land, which it purchased from the company in May 2020, and is not obliged to use it exclusively to construct a new hospital as previously stipulated.
Under the terms of the agreement, the region will pay Unimex Group CZK 10 million. Of the 41 representatives who attended the meeting, 27 voted in favor of the settlement.
“This ten-million settlement with Unimex is a very advantageous solution for the region and is essentially an investment into the region’s assets, which will continue to increase in value,” said Radim Holiš, the head of the region.
The region had planned to build a new hospital on the site, which it purchased from Unimex Group for CZK 1.55 million. However, the new leadership of the region delayed the project, and two years ago, regional representatives approved an extension of the investment plan for the hospital until 2040.
In an interview, Holiš said, “I expect that we will agree soon, by the end of the year, on how we will proceed in the zone.”
The dispute over the land arose from a previous agreement made by the region’s former leadership, under Jiří Čunka of KDU-ČSL, to build a new hospital on the site. Unimex Group had stipulated that the land should be used for this purpose.
However, the new leadership of the region has postponed the hospital project and extended the investment plan for the hospital until 2040.
The dispute highlights regional authorities’ challenges in financing and managing large-scale infrastructure projects such as hospitals.