On the tenth anniversary of the agony during which the two sides filed lawsuits worth 25 million euros against each other, and the lock that was put in place three years ago since Budva has no bishop, the Municipality and "Lovćen Film" are ready to resolve the problem by concluding a settlement worth 1,7 million euros, which will be paid out of the city's coffers to the private company.
This is the essence of the settlement agreement on mutual rights and obligations, which bury the "hatchets of war" between the Municipality, the Public Institution "Grad Teatar" and "Lovćen Film".
The agreement was approved by the parliamentary majority the day before yesterday, and the Municipality committed to paying 1,7 million euros - 1.385.000 euros as compensation for the initial investment, 75.000 euros for the costs of functional maintenance of the bridge, and 255.000 euros based on lawsuits.
It is envisaged that the two parties will waive all potential lawsuits and previous disputes.
President of the Municipality Nikola Jovanovic He told "Vijesti" that the cinema is expected to reopen at the end of the summer, and that it will be assigned to the management of the Public Institution "Grad Teatar".
A decade of controversy
In 2014, after the Municipal Assembly gave the green light, the municipality and “Lovćen film” concluded an agreement under which the private company was given more than two thousand square meters of office space in the TQ Plaza complex, where the “Cadmus cineplex” cinema was officially opened in May 2015, for free use for 20 years. The local government also committed to an annual subsidy of 199.000 euros. The municipality also committed to leasing about 1.500 square meters of office space and about 200 square meters of non-residential space in the TQ Plaza complex to “Lovćen film” for free for 20 years, and to adapting the terrace for an open-air cinema.
However, the then mayor Lazar Radjenovic concludes an annex to the contract, according to which the Municipality must pay “Lovćen Film” 398.000 for 2015 and 2016, i.e. subsidies for the 19th and 20th years of the lease.
Immediately after Rađenović resigned, the annex to the contract was contested by the mayor at the time Srdja Popovic (DPS).
The controversial cinema project was the subject of accusations and numerous lawsuits after the DPS lost power in 2016.
Administration of the former Mayor Dragan Krapović (Democrats) claimed that the project was the product of massive corruption and that the local government and citizens were harmed, while "Lovćen Film" claimed that the Municipality could not have obtained a better project, and persistently called for all disputes to be resolved either in court or peacefully, but for the cinema to continue operating.
When he sat in the chair of the first man of Budva Milo Bozovic, the cinema closed in February 2023 and has been under lock and key ever since.
During that time, lawsuits were filed, and the last in the series, worth five million euros, was filed by "Lovćen Film" last month.
"The business relationship between the Municipality and Lovćen Film was established in 2014, and since 2017, there have been active court proceedings filed by the parties against each other. No criminal prosecution has taken place, nor has anyone been prosecuted for this legal matter. It is important for citizens to know this. Looking at all these disputes and unpaid subsidies for nine years, we as the Municipality of Budva come to a potential damage of 12,6 million euros, which the local government could pay in the event that the proceedings end negatively. Also, the Municipality initiated numerous proceedings after 2017," Jovanović told "Vijesti".
Looking at the nominal value of all disputes, as Jovanović said, it ranges from 12,6 million euros to 25 million euros.
"This negative relationship has been going on for ten years, the same as the frozen relationship between the two parties. Regardless of the political narrative or someone's assessment of this project, we have the fact that the biskop has been closed for the third year and cannot be used, and the Municipality's space is captured. On the other hand, the equipment owned by Lovćen Film is captured. After extensive discussions, we have come to a certain modality to regulate mutual rights and obligations, similar to what the Municipality did with the German company WTE in the wastewater project. A certain amount of money is paid, and both parties waive all known, unknown and future actions between themselves. When this agreement is implemented, our business relationship will be regulated once and for all. The Municipality of Budva will be able to take possession of and open the biskop within eight days from the date the agreement becomes effective," Jovanović emphasized.
The lawyer gave an opinion.
Jovanović said that they were careful not to burden the budget with the payment and that, given that the payment was not foreseen in the budget, the allocation would be planned through a rebalance.
"It is planned that after the conclusion of the agreement, 260.000 euros will be paid within a period of 30 days, with installments of 400.000 euros each on November 30 and December 30 of this year, and the remaining two on January 30 and February 28 of next year. These are acceptable amounts that will not burden the budget and are realistically planned," Jovanović pointed out, adding that each party will bear the costs of the legal proceedings they have initiated.
By implementing the agreement, as he emphasized, the Municipality will transfer the bishopric to the management of the Public Institution "City Theatre".
"We expect to expand the activities of this public institution by amending the Statute and the possibility of holding numerous events in the space owned by the Municipality, not just those related to film activities... I expect the cinema to be open by the end of the summer."
Jovanović confirmed that he had said that the contract concluded 12 years ago was harmful, but that it was high time to solve the problem, because the city needed a cinema.
"I consulted with lawyers, who made it clear that the Municipality, although the owner, cannot just enter the premises where the cinema is located, because there is equipment there that is not our property, and that complications may arise." Lawyer Miroje Jovanovic, who was engaged by the Municipality as in the WTE case, submitted an opinion... He assessed that 'the agreement ends a large number of court proceedings whose total nominal value exceeds 20 million euros, that by paying the obligations the Municipality eliminates the risk of major financial liabilities that may arise in court proceedings, especially in the dispute over compensation for damage, and that the conclusion of the agreement represents a legally, justified and economically rational solution.'
SDT consent is (not) required
Councilor of the "Movement for the City" Đorđe Zenović questioned the agreement, asking whether the Municipality had received consent from the SDT to conclude a settlement agreement with "Lovćen Film".
He explained that the SDT is investigating the arrangement between the Municipality and "Lovćen Film", reminding Jovanović that he was explicit that no contract would be concluded with that company.
Jovanović assessed that SDT is not a party to the proceedings, and that, as he says, no consent is required in accordance with the law.
"Just as we did not need consent to conclude a settlement with the WTE company... We do not need it now, because no criminal proceedings are being conducted in this case, because the criminal charges have been dismissed... This was not a political agreement regarding the election of the vice president, as it is being presented."
“Lovćen Film”: Confirmation that the project is legal
"Lovćen Film" says that they have been persecuted for years and that the conclusion of the agreement is "confirmation that the project is legal and for the benefit of the citizens of Budva."
"We feel relieved today that the decade-long chase that everything that was done in the past was illegal has finally ended and that this has proven that all those accusations and reports... were politically motivated and malicious. On the other hand, we regret that we could not continue cooperation and improve the work of the cinema... However, for the sake of the citizens of Budva and above all for the sake of children and young people, we are looking forward to the announcement that the Municipality will soon, together with the JU Grad Teatar, open a cinema and enrich the cultural and entertainment offer of our city... We want the next period to be even more successful, with many more viewers," they told "Vijesti".
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