The company "Bećović management group", the buyer of the hotel "Mediteran" in Ulcinj, for now fully respects the agreement it signed in October last year with the Government and the Ulcinj Riviera.
This was officially told to "Vijesta" by the Ministry of Economic Development (MER).
The agreement on the regulation of mutual obligations implies that by the beginning of the summer season in 2025 at the latest, the investor will invest 13 million euros in the hotel, bring it to the level of a minimum of four stars and put it into operation.
Completion of the investment in 2025.
One of the contractual obligations was for the company to submit to the Government the main project, investment and dynamic plan, as well as proof of the provision of money for the realization of its investment obligations by April 30 of this year.
"On April 29, the company duly submitted complete documentation to the Government, which consists of the main project, investment-dynamic plan and proof of the money intended for the realization of investment obligations. According to the dynamic plan that follows this investment, the company contracted 2,8 million euros of works today, which means that we have already approached the quota of three million euros that we are obliged to invest by the end of this year", the company told "Vijesti".
As explained, the key features of the investment project will enable the categorization and content of the future hotel to be achieved at the level of a minimum of four stars, with a total investment of EUR 13 million and a final completion date of April. in 2025.
"Our management team is working to ensure that a significant part of the adapted and modernized accommodation facilities is ready to welcome the first guests during this summer season," the company states.
The Ministry of Economic Development also confirmed that the American investor submitted the main project for the "Mediterranean" hotel, an investment and dynamic plan, as well as proof of the funds provided for the realization of the mentioned investment, and that there are no violations of contractual obligations.
"The agreement envisages investments in three phases in the total amount of 13 million euros. In the first phase of this year, three million investments are planned, and five million in the next two years. However, according to the submitted investment plan, it can be stated that the investments will be greater than 13 million", they said from this government department.
MER pointed out that in order to adequately control the implementation of investment activities, they hired a controller to supervise the project.
"The buyer submitted documentation to the controller, on the basis of which he will prepare a report that will include an analysis of the main project, investment and dynamic plan. After the completion of the report, it will be submitted to the ministry and the contracted parties, they said in MER.
The company "Bećović Management Group" bought the hotel "Mediteran" with villas and the land belonging to it from the Ulcinj Riviera on July 25, 2005, for 940 thousand euros. The company clarified that the first contract from 2005 failed because of the Detailed Urban Plan (DUP), that is, they could not build swimming pools and other facilities inside the hotel due to a lack of plans.
Delayed planning documentation
The agreement stated that the contracting parties agree that the seller was late in fulfilling his obligations from the article of the basic contract from 2005 and that the buyer was partially prevented from carrying out his investment activities from article 9 of the contract, due to objective circumstances.
"That is, due to the delay in the adoption of the planning documentation - PUP Ulcinja and the confirmation of UP "Mediterran". The mentioned planning document was finally confirmed on December 29, 12 in the SO and is in force since March 2017, 21.
Since it was determined that the buyer was late with the investment obligations, as stated in the agreement, in May 2020 the Government charged Ulcinj Riviera with debt. the then Ministry of Tourism, the Investment Agency and the Protector of Property and Legal Interests to initiate the contract termination procedure. However, the contracting parties unanimously declared that even until the day of signing the agreement, the contract in question was not terminated.
"Bećović Management Group" sent a letter of intent to the Government in September of last year, in which it stated that it intended to realize an investment of greater value than that foreseen in the basic contract and presented a dynamic plan for future investment that should lead the hotel to level 4+ stars.
The contracting parties agree that the agreement can be terminated by mutual consent or in the event that the customer violates the agreement.
"In case of termination of the contract, the buyer will return the property that is the subject of the contract to the seller (Ulcinjska Riviera) and the seller will reimburse the buyer an amount corresponding to 80 percent of the amount invested in the realization of the investment, which was confirmed by an independent controller, less the amount of 1.223.000 euros on the name of compensation for damages due to the bona fide release of the obligation to provide a guarantee in accordance with Article 4 of the agreement. The remaining difference in money will be kept by the seller based on the depreciation of the used assets and the lost profit for the period of use of the real estate by the buyer," the agreement reads.
In 2012, the Privatization Council concluded that the local government was responsible for not adopting the necessary urban plans for the "Mediterranean" and "Galeb" hotels, which were once owned by the Ulcinj hotel company.
In December 2007, the new owner of "Mediterana" paid 250.000 euros to the utility bill. At the beginning of 2018, the Municipality of Ulcinj was blocked after the final court verdict on the claim of "Mediterranean" for the return of utilities in the full amount, because it did not pass the plans on time.
Passage to the sea and part of the small beach for rent
According to the agreement, Ulcinj Riviera will, in cooperation with the Government, provide the company with the necessary legal and technical assistance for the realization of investment obligations.
This assistance, it says in the agreement, includes the establishment of an official passage for the investor through the cadastral plot 3565/2 KO Ulcinj, because it represents the only exit to the sea from the "Mediteran" hotel.
It is emphasized that in this regard, an initiative will be submitted to the Government and JP for the management of the marine asset to lease a part of Mala Plaža, so that the hotel will be able to operate with a standard of at least four stars.
Investing in "Mediterranean" is a big profit for Ulcinj tourism
The signing of the agreement, which provided for "Mediterranean" to be brought to the minimum level of 4+ stars, was also welcomed by the director of the Ulcinj Tourist Organization. Gzim Hajdinag.
He said that the realization of the project could be a generator of the future development of tourism in the city.
"We are happy to know that investments are finally arriving in Ulcinj that will bring us luxury hotels with 4+, five or more stars. This is a big gain for the city, but also for us, since we are raising the offer of Ulcinj to a higher level", said Hajdinaga.
Bonus video:
