Minister of Spatial Planning, Urbanism and State Property Slaven Radunović rejected the request of the Podgorica company "Fab live" that the government department would issue them a use permit for the apart-hotel "Tre Canne" on the Budva promenade near the Adriatic Fair.
"The request of 'Fab live' to issue a use permit for the constructed apartment hotel with outbuildings is rejected due to formal reasons," reads the decision signed by Radunović, which "Vijesti" had access to.
The apart hotel has not had a use permit for years, but it received annual permits for catering activities and regularly achieved tourist traffic.
In previous years, the municipality of Budva repeatedly refused requests for the issuance of a use permit, and submitted the last request to the relevant ministry this summer, when it was headed by Janko Odović.
The request was submitted on July 22, at a time when a change in the leading position was being prepared in this relevant ministry, i.e. Radunović was appointed instead of Odović.
"As it was determined that the 'Fab live' submission contains formal deficiencies that prevent action, the investor is invited to submit, within five days, the statements of the contractor and the supervising engineer that the building was built in accordance with the building permit, the statement of the leading designer that the building built in accordance with the construction permit, evidence of fulfilled obligations in accordance with special regulations, as well as evidence of the arrangement of relations in terms of utility payments. Submit the revised main project because the building permit was issued based on the preliminary project," the decision, which was adopted two weeks ago, reads, among other things.
As the investor, as stated, did not submit the required documentation within the deadline, the application for a use permit was rejected.
For years, the municipality has refused to issue a use permit precisely because the relationship regarding the payment of millions of dollars to the utilities has not been resolved.
In August last year, the Secretariat for Urbanism and Sustainable Development of the Municipality of Budva rejected the request of the Podgorica company to issue a use permit for a 14-story apartment hotel and two buildings that make up the "Tre Canne" complex.
As it was explained at the time, the company submitted an incomplete request, because it does not have technical documentation.
It was the seventh time that the municipal secretariat rejected the request of "Fab live", which submitted new requests again and again.
The "Tre canne" complex includes a 14-story central tower with an apart-hotel and two more eight-story buildings built right next to the halls of the Adriatic Fair. The municipality of Budva and the company "Fab live" never resolved the relationship in the payment of utilities, and that had a court epilogue.
In 2019, the Supreme Court rejected the request for revision and thus confirmed the judgment of the Court of Appeals, which rejected the claim of the Podgorica company that the Municipality should pay it almost 2,1 million euros in damages, because the local administration did not issue a use permit for that complex.
In mid-November 2018, the Council of the Appellate Court rejected as unfounded the appeal of the Podgorica construction company and confirmed the judgment of the Commercial Court - that the Municipality is not obliged to "Fab Live" in the name of compensation for material damage in the form of lost profit to pay the amount of 1.824.170 euros, with the legal 253.786 euros with interest.
The company "Fab live" sued the Municipality for compensation of material damages in the form of ordinary damages and lost profits, as well as non-material damages due to damaged business reputation.
The dispute arose because the luxury business-residential complex "Tre canne", built by the company "Fab live", cannot obtain a use permit, since the Municipality, as claimed by that company, did not fulfill the contractual obligations, which is why the investor sued .
At the end of July 2013, "Fab Live" and the Municipality concluded a compensation agreement in which 6,5 million euros of fees for the communal equipment of the "Tre Canne" complex were paid to apartments and business premises in that building, with the consent of both parties. The municipality received 17 apartments, seven business premises and 26 garage spaces, a total of 2.100 square meters of residential and commercial space, estimated at 6,5 million euros, which is the amount of utilities billed to Fab Live.
Also, it was agreed that the Municipality of Budva will transfer the business-residential premises to the ownership of the Ministry of Finance, in the name of reducing the tax debt, which was foreseen in Article 3 of the Utilities Agreement.
The municipality of Budva registers the real estate in its own name, but although "Fab live" has repeatedly asked them to issue a certificate that they have settled the utilities, the local administration has not done so because, on the other hand, the Ministry of Finance has refused to take over the commercial and residential premises and thereby offsets the tax debt, because the registration of property rights on real estate is not aligned with the issued construction permit.
That was also the reason for "Fab live" to file a lawsuit.
The company from Podgorica based its claim on the claim that due to the non-issue of a certificate of paid utilities from the Municipality, they were unable to obtain a use permit for the hotel and put it into operation, as well as that the local administration did not complete the communal equipment of the urban plot on which "Tre canne" because of which they suffered damages.
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