By Transferring City Real Estate, Rijeka Settles 70 Million Kuna Debt to the State

The Minister of State Property, Goran Marić, discussed state property in the city with Rijeka’s mayor, Vojko Obersnel, on Wednesday, focusing on activating that property for the benefit of the local community. After the meeting, he stated that they had found modalities and solutions for all previously unresolved relations between the state and the City of Rijeka.

Minister Marić and Mayor Obersnel also signed a Contract for the Donation of Real Estate, based on which the Ministry of State Property donates state-owned real estate in the Drenova area to the City of Rijeka for the construction of communal infrastructure and access roads between the Bok settlement and Drenovski Put. The value of the donated real estate is estimated at over 800 thousand kuna, and the City of Rijeka has committed to putting the properties to use within the next five years.

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Minister Marić stated that the City of Rijeka is an example of accumulated unresolved issues with the state, as the dispute and the city’s debt to the state have not been resolved for years.

“We have found modalities for resolving all problems, touched on all unresolved areas, and it seems to me that there was nothing for which we did not find a model for resolution,” he said, explaining that he presented solutions from a legislative proposal that is going to a second reading, which will help the city and the state resolve many difficulties, collect receivables, activate property in Rijeka, and thus stimulate employment and investments.

In this way, he added, court disputes are avoided, as in some cases there will be out-of-court settlements.

Marić: 70 Million Kuna Debt of the City to the State Will Be Settled by Transferring City Real Estate to the Republic of Croatia

Marić stated that regarding the city’s debt to the state, it amounts to about 70 million kuna, which will be settled by transferring ownership of the city’s real estate to the state, specifically those properties that the state is already using and for which it pays rent. These are business premises owned by the city that are used by state administration bodies, for possible offsetting of rent payments, as well as apartments in state ownership managed by the City of Rijeka.

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“There will be a double benefit – debts will be settled, and the Republic of Croatia will not pay rent,” he said, adding that this involves hundreds of properties.

When asked whether the state would transfer some properties to the Rijeka local government where ownership is not in question, he replied that according to the law, properties that were schools, hospitals, kindergartens, parks, fire stations, sports fields, and community centers until December 31, 2017, will become the property of cities and municipalities. It is envisioned, he says, that everything agreed upon today will be realized by the end of the year.

Mayor Obersnel emphasized that some of the mentioned problems will be resolved by the Law on Managing State Property, which is in procedure and addresses a large part of the ownership issues, and which stipulates that wherever there is a public interest, land, although state-owned, becomes the property of the institution or local government operating there. This primarily concerns kindergartens, schools, health institutions, and sports facilities that remained unresolved during the transition process.

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He noted that due to unresolved relations, the city could not apply for energy efficiency programs and obtain European funds for their renovation. “With the new law and resolving such relations, this will no longer be a problem,” he stated.

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He also mentioned that efforts are being made to resolve the city’s debts to the state through business premises where state institutions operate, and to resolve all spaces where they are co-owners in ownership terms, so that a portion of the business premises will remain in the city’s ownership, as well as a portion that will be state-owned.

Obersnel expressed satisfaction that the Ministry of State Property recently opened an office in Rijeka, as he is convinced it will contribute to faster resolution of problems and activation of state business premises.