Regarding the area, which is subject to conflicting development plans by the government and the municipality, Karácsony said the legal situation was “clear and unequivocal”.
The seller, the Hungarian state, informed the buyers in the sale and purchase agreement that two Budapest-owned companies have pre-emption rights over the entire area, he said. The purchase contract stipulates that the investor must pay the first installment of the purchase price within 10 days of the Hungarian state presenting declarations waiving the right of pre-emption, he said.
“That deadline won’t pass uneventfully,” Karacsony added. The mayor said the current owner, the Hungarian state, “has allowed this especially valuable area to decay and be polluted for decades.”
He said it was time that development started according to “principles espoused by practically the entire profession of city development”, which he said had been strengthened by the latest decision of the Budapest assembly on the matter.
“The Park City concept”, he said, promoted “affordable housing and a lot of green [areas] for many, rather than luxury for a few.” Should the state violate the pre-emption rights of Budapest Közművek (BKM), the Budapest utility company will immediately sue both the Hungarian seller and the UAE buyer, “the Arab billionaire”, Karácsony said.
BKM will pay for the area from the price of Budapesti Hulladekhasznosito, a waste management plant, he said.
“We are prepared for attempts from the Hungarian government to circumvent our pre-emption rights,” and will use all legal remedies to prevent that, he said.
The Budapest Assembly will debate the proposal on the matter on Wednesday.
He said councilors “will have to decide whether they are serving Budapest’s future or [giving in to] the government’s machinations”.
Read the Budapest Business Journal’s report about developer Eagle Hills’ plans for the area entitled “Grand Budapest” here.
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